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Thursday
Feb202014

Wal-Mart expects FCPA-related costs up to $240 million for current year

Wal-Mart Stores, Inc. said in an earnings release Thursday that it expects to spend between $200 million and $240 million on FCPA-related matters and compliance for fiscal 2015.

The world's largest retailer has already spent more than $300 million on FCPA and compliance related matters.

Wal-Mart started an internal FCPA investigation in 2011. The DOJ and SEC are also investigating the company.

"We anticipate expenses for FCPA matters and compliance-related enhancements to range between $200 and $240 million for fiscal 2015," Wal-Mart said in its quarterly and annual earnings release Thursday.

In 2012, the New York Times reported in a Pulitzer Prize-winning story that Wal-Mart's Mexico unit paid $24 million in bribes to speed up licensing and permitting for new stores. The paper said top managers in the U.S. covered up the bribery after learning about it.

The investigation spread from Mexico to other countries, including India and China.

Wal-Mart has said it is cooperating with the DOJ and SEC.

In Mexico, a number of federal and local government agencies have also launched investigations, the company said.

Wal-Mart said net sales for the past year were $473.1 billion, up $7.5 billion over the prior year. Net income was $26.9 billion for the year, down 3.1 percent.

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Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.