The market value of Wal-Mart Stores Inc went down $10 billion due to the companies concerns that a bribery investigation in Mexico could hurt them.
According to a New York Times article, Wal-Mart’s in Mexico had been engaging in bribery in order to build their business. Two U.S. lawmakers, as well as Mexican lawmakers, have called for an investigation on the world’s largest retailer.
If the allegations are found to be true, Wal-Mart will have violated the U.S. Foreign Corrupt Practices Act, or FCPA. This act makes it illegal to bribe foreign government officials.
Concerns have also been raised over Wal-Mart Chief Executive Mike Duke and former CEO Lee Scott, who supposedly were aware of the situation. The two U.S. lawmakers, Elijah Cummings and Henry Waxman, both Democrats, have requested to meet with Duke.
Shares in both Wal-Mart de Mexico and Wal-Mart have fallen. In Mexico, shares fell 12 percent, while in the U.S., they fell 4.7 percent.
Due to the situation, Wal-Mart may now have trouble expanding into new markets.