Former Wal-Mart Vice Chairman Tom Coughlin wants the retailer to honor the retirement agreement that Wal-Mart reached with him.
An attorney for Coughlin filed a counterclaim Thursday in Benton County Circuit Court asking the court to declare Coughlin?s retirement agreement ? which includes a mutual release ? as a valid, binding and enforceable contract.
Wal-Mart originally filed suit against Coughlin in an attempt to void the retirement agreement. The suit claims that Coughlin was part of a conspiracy to defraud Wal-Mart of money and property. Wal-Mart claimed that Coughlin misappropriated hundreds of thousands of dollars for his personal benefit through fraudulent transactions.
Circuit Judge Jay Finch dismissed Wal-Mart?s suit, but the Arkansas Supreme Court overturned the dismissal.
According to court documents, Wal-Mart announced on Dec. 6, 2004, that Coughlin would retire in January but would continue to serve on the company?s board of directors. Coughlin and Wal-Mart later executed the retirement agreement.
According to Coughlin?s counterclaim, he was to retain 186, 407 shares of restricted stock, and Wal-Mart agreed to continue to provide for Coughlin?s and his wife?s medical and dental coverage until age 65. The retailer also agreed to provide medical and dental coverage for Coughlin?s son, Michael, until he reached age 23, according to court documents.
In March 2005, Coughlin was eligible to receive a final prorated payment and was to receive, for a two-year period, transition payments based on an annual base salary of $ 1, 040, 000, court documents state.
Wal-Mart terminated Coughlin from its board of directors on March 25, 2005, and rescinded the retirement agreement, according to Coughlin?s counterclaim.
The counterclaim states that Wal-Mart has failed to pay Coughlin any benefits to which he is entitled under the retirement agreement.
In January 2006, Coughlin pleaded guilty to five counts of wire fraud and one count of tax evasion. Criminal information charged that Coughlin used his position at Wal-Mart, from 1996 to 2002, to execute a scheme to illegally instruct subordinate employees to manipulate the employee travel-reimbursement and vendor-invoice accounting system at Wal-Mart to embezzle money, gift cards and products that were provided to Coughlin for his personal benefit and use.
In August 2006, U. S. District Judge Robert T. Dawson sentenced Coughlin to five years ? probation with 27 months of home detention. Coughlin was ordered to pay a $ 50, 000 fine, $ 306, 822 in restitution to Wal-Mart and $ 104, 395. 60 to the Internal Revenue Service.
A federal appeals court sent the case back for Dawson to resentence Coughlin.
