Wal-Mart settles suit against disgraced former executive Coughlin

By Jon Gambrell, The Associated Press

LITTLE ROCK, Ark. - Wal-Mart Stores Inc. has settled a lawsuit it brought against disgraced former executive Tom Coughlin to void his multimillion-dollar retirement package.

Court officials said the terms of the settlement between Coughlin and the Bentonville-based company would be sealed for 20 days.

Tim Brooks, Coughlin's lawyer, said the settlement included some payment to his client, but he wouldn't say how much.

Brooks declined to comment further about the deal, which was read to a court reporter during a meeting in judge's chambers Thursday.

"We're glad to be where we are," Brooks said.

Daphne Moore, a Wal-Mart spokeswoman, said she had no details about the settlement. She also declined to comment on whether the company had taken steps since Coughlin's retirement to stop potential abuses of its retirement agreements.

"We are satisfied that the settlement is fair for both parties and we are ready to put this one behind us," Moore said.

The case was settled shortly before jury selection was scheduled to begin Thursday afternoon.

Coughlin, a protege to Wal-Mart founder Sam Walton, retired from the company in 2005. In 2006, Coughlin pleaded guilty to federal charges of wire fraud and tax evasion after admitting in court to defrauding the company to pay for the care of his hunting dogs, lease a private hunting area, upgrade his pickup truck, buy liquor and a cooler, and receive US$3,100 in cash, among other items. The items were worth a minuscule amount when compared with his $1 million-plus yearly salary.

Wal-Mart sued Coughlin shortly after he retired, asking a Benton County Circuit Court judge to void his retirement package over the embezzlement. The benefits were estimated at between $12 million and $16 million.

A judge dismissed Wal-Mart's lawsuit, but the Arkansas Supreme Court last year agreed with the company that Coughlin was obligated to disclose his thefts during retirement negotiations.

A federal judge originally sentenced Coughlin to 27 months of home detention plus five years probation over the thefts, but prosecutors appealed the sentence, calling it too lenient. In February, a judge added community service hours to his sentence, but allowed him to continue serving his sentence at home.

Shares in Wal-Mart rose 14 cents Thursday to close at $58.50.