Former executive drops lawsuit against Wal-Mart

A former Wal-Mart ad executive has decided to drop her breach-of-contract lawsuit against the world’s largest retailer, saying the lawsuit had become financially draining and more complex than she had expected.

“I just decided not to pursue it,” Julie Roehm said Monday. She wouldn’t elaborate beyond a prepared statement saying that her lawsuit had wound up going beyond her effort to recover $1.5 million in severance pay.

She also acknowledged that allegations of ethical breaches she made in her original suit, which was dismissed, contained inaccuracies.

Roehm said the lawsuit brought a financial strain. Beyond that, Wal-Mart detailed in court filings how Roehm and subordinate Sean Womack had an extramarital affair and showed favoritism toward an agency that was lobbying for Wal-Mart’s account.

The company’s countersuit also accused Roehm and Womack of trying to find a job with the ad agency.

In August, a judge threw out Roehm’s suit filed in Michigan, saying the matter should be heard in Arkansas, where Wal-Mart is based. With Roehm’s decision to not refile, Wal-Mart spokeswoman Mona Williams said Monday the company would drop its countersuit.

Roehm said she received no money from Bentonville-based Wal-Mart Stores Inc., the world’s largest retailer.

Roehm’s statement also said information exchanged among Roehm’s lawyer, Wal-Mart and businessman Irwin Jacobs revealed “the inaccuracy of certain allegations” about Jacobs and Wal-Mart Chief Executive H. Lee Scott Jr.

In May, Roehm claimed in another court filing that Scott violated the company’s ethics policy by accepting trips and discounts on yachts and jewelry from Jacobs, a wealthy entrepreneur who does business with Wal-Mart. Both Wal-Mart and Jacobs denied all of Roehm’s claims. Jacobs sued Roehm for defamation.

Roehm said she was content to drop the matter.

“I have decided to accept Wal-Mart’s decision to terminate my employment and move on. I am not receiving any money or other compensation to settle my case,” Roehm said in the release.

Jacobs, in a statement released to the Wall Street Journal, said that he felt vindicated by Roehm’s statement and that he would drop his counterclaim against her.

Roehm departed Wal-Mart in December after working there less than a year. Roehm was brought in to help the company promote more high-end merchandise.