Bowen v. Wal-Mart

Posted on Friday, June 9, 2006

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BENTONVILLE — Circuit Judge John Scott has scheduled a hearing to determine whether a former Wal-Mart employee is a limited-purpose public figure.

Jared Bowen, a former vice president of operations for Wal-Mart, is suing the company, claiming the retailer made false and defamatory statements regarding him to local and national media.

The hearing is scheduled for 9 a.m. July 5.

If Bowen is determined to be a limited-purpose public figure, he then must prove Wal-Mart acted with malice or with reckless disregard for the truth. As a private figure, he must prove a much lower standard — only that the retailer’s acts were negligent.

Bowen was terminated from his job on April 4, 2005. On May 23, 2005, Bowen filed a complaint with the U.S. Department of Labor under the Sarbanes-Oxley Act, in which he alleged Wal-Mart terminated his employment because he reported former executive Tom Coughlin’s wrongdoing.

Wal-Mart said Bowen defrauded the company using fake expense reports and came forward only after he realized he might be caught. On April 4, 2005, Bowen claims, several Wal-Mart executives phoned him and told him he was being terminated because of a lack of confidence. On April 29, 2005, the suit claims, Wal-Mart issued a news release stating Bowen had been terminated for assisting Coughlin in a scheme to defraud the company.

Wal-Mart’s response to Bowen’s Sarbanes-Oxley complaint contained allegations of fraud and misconduct. The retailer posted the response on its Web site, which broadcast the allegations to the public.

Wal-Mart wants a court to declare Bowen a limited-purpose public figure.

Court documents claim Bowen injected himself into the controversy over the circumstances leading up to Coughlin’s departure from Wal-Mart. Bowen’s claim that he was the whistleblower in the Coughlin scandal put him at the center of that controversy. Bowen tried to convince the public that Wal-Mart had illegally retaliated against him for revealing the facts of Coughlin’s fraud, embezzlement and criminal wrongdoing. Those voluntary actions on Bowen’s part render him a limited-purpose public figure, court documents claim.

Attorneys for Bowen previously filed a motion claiming media interest in Coughlin’s case was a result of Coughlin’s high position in the company and did not involve any actions by Bowen.

Bowen’s only involvement in the publicity surrounding the Coughlin matter stems from three things: Bowen’s termination by Wal-Mart; his decision to take legal action to get his job back; and his public denials of being an accomplice to Coughlin and committing fraud, according to court documents.

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