View Scott letter
View Cox letter
View McNulty letter

Calls on U.S. Attorney General’s Office and SEC
to Investigate Reports of “Ill-considered and Possibly Illegal” Activities by the Retail Giant

Following reports in the Wall Street Journal (4/4 & 4/5), New York City Comptroller William C. Thompson, Jr. has sent letters to Wal-Mart President and CEO Lee Scott, Deputy U.S. Attorney General Paul J. McNulty, and Christopher Cox, the Chairman of the Securities and Exchange Commission.

In his letter to Wal-Mart, Thompson cited reports of the retailer’s “ill-considered and possibly illegal surveillance operations directed at my office and numerous other shareholders; particularly those…who were introducing resolutions that your company was seeking to thwart.”

Writing to the Deputy U.S. Attorney General, Thompson blasted Wal-Mart’s reported activities as “chilling and truly outrageous,” and called upon the AG’s office to “thoroughly investigate whether Wal-Mart’s conduct was, and continues to be, illegal.”

“This conduct,” declared Thompson in his letter to the SEC Chair, “reflects breathtakingly flawed judgment and raises significant questions regarding Wal-Mart’s commitment to its shareholders and the public markets.”

He continued in his letter to Cox:  “I strongly urge your office to thoroughly investigate this matter and compel Wal-Mart to fully disclose the nature and extent of this apparently long-standing practice.”

In all three letters, Thompson characterized as “troubling” Wal-Mart’s assertion that it “considers this conduct to be justifiable and proper” and that it “will continue to conduct these activities in the future.”

As was reported in the Wall Street Journal on April 4, Thompson’s office, among others, was subject by Wal-Mart to surveillance and “threat assessments” related to shareholder proposals. In his letter to Scott, Thompson pointed out that the New York City Pension Funds hold approximately 8 million shares of Wal-Mart with a current market value of nearly $400 million.

“As New York City’s Chief Financial Officer and the Chief Investment Advisor to the City’s Pension Funds, I am particularly troubled by reports that Wal-Mart engaged in surveillance and ‘threat assessments’ of shareholders and those who question its business practices,” he wrote to Scott.

The New York City Pension Funds represent nearly 600,000 active members, beneficiaries and retirees, and are valued at nearly $100 billion.  The New York City Comptroller is a Trustee of four of the five funds, and Chief Investment Advisor to all five.  Under Comptroller Thompson, the funds have become more active in pursuing shareholder resolutions pertaining to corporate governance, human rights, and fair labor practices.