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Wal-Mart to Increase Financial Disclosure in Face of SEC Scrutiny

Wal-Mart has agreed to make more disclosures regarding lawsuit liability risk

After running afoul of regulators, retail mega-giant Wal-Mart has agreed to make additional disclosures in future financial reports, according to Reuters.

In correspondence with the Securities and Exchange Commissions released publicly on August 6, the regulatory agency asked for more

After running afoul of regulators, retail mega-giant Wal-Mart has agreed to make additional disclosures in future financial reports, according to Reuters.

In correspondence with the Securities and Exchange Commissions released publicly on August 6, the regulatory agency asked for more detail and clarification concerning the company's legal issues and the possible outcomes of various court cases against it. Specifically, the SEC has asked Wal-Mart to include either a range of possible loss from litigation or an explanation as to why a range cannot be given, Reuters reported.

The SEC also raised concerns over Wal-Mart's disclosure of risk from cyber attack in its yearly reports.

"Wal-Mart said computer hackers make numerous attempts to breach the company's information systems each year and that none of the attempts have resulted in anyone gaining access to the personal information of customers, employees or vendors stored on Wal-Mart's information systems," the source reported. "It agreed to state more clearly that it 'may be vulnerable' by modifying its risk factor disclosure to include details about the security of its information."

A recent report from the Bipartisan Policy Center indicated that 50,000 cyber attacks against U.S. businesses are reported each year, a fraction of the total amount, according to Federal News Radio. Increased disclosure of these attacks can help improve protection for both private and public networks, the source said.

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