UPDATED: Coughlin, Wal-Mart settle benefits suit for $6.75 million

By The Arkansas Democrat-Gazette (Contact)

BENTONVILLE — Attorneys for Wal-Mart Stores Inc. and Tom Coughlin settled a lawsuit Thursday in which the retailer will pay the former company vice chairman $6.75 million to keep him from collecting millions more in retirement benefits.

The settlement was reached hours before a jury trial was set to begin.

Wal-Mart filed a report to the U.S. Securities and Exchange Commission late Thursday afternoon saying Coughlin agreed to forego the remainder of a retirement package valued at $17 million.

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

Terms of the settlement won't be made public for 20 days, attorneys involved in the case said. Tim Brooks, Coughlin’s lawyer, said the settlement included some payment to his client, but he wouldn’t say how much.

Tom Coughlin, former vice president of Wal-Mart, leaves court in this 2006 photo.
Bob Coleman

Coughlin, 59, retired in 2005. In January 2006, he pleaded guilty in U.S. District Court to wire fraud and tax evasion. He's serving 27 months of house arrest, to be followed by five years' probation.

Wal-Mart sued Coughlin after charges were filed against him, saying he was embezzling from the company when it agreed to the retirement package, estimated to be worth $12 million to $16 million.

Read tomorrow's Arkansas Democrat-Gazette for full details.

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Information for this article was contributed by The Associated Press.