Berman Tabacco represents Norfolk County Retirement System in Ontario Provincial Council of Carpenters’ Pension Trust Fund, et al. v. S. Robson Walton, et al., C.A. No. 2021-0827 (Del. Ch.), a derivative complaint seeking to hold Walmart’s controlling shareholders, Board of Directors, and senior management accountable for their alleged breaches of fiduciary duties to Walmart’s shareholders in connection with the company’s opioid distribution and dispensing practices. This derivative suit followed a successful action to compel the company to produce books and records regarding these practices pursuant to 8 Del. C. § 220, Norfolk County Retirement System v. Walmart Inc., No. 2020-0482 (Del. Ch.). The complaint alleges that these decisions and oversight failures led to alleged violations of the Controlled Substances Act (“CSA”), the False Claims Act (“FCA”), as well as state and common laws. The complaint alleges that Walmart entered into an agreement with Drug Enforcement Agency requiring the company to implement wide-ranging opioid diversion controls. Yet, for more than a decade, the company failed to implement those required controls, even at times acknowledging the absence of required controls.
Defendants’ Motion to Dismiss the complaint was mostly denied in two landmark opinions in April 2023. The case is now proceeding with discovery.