Coughlin will appear in court tomorrow in Fort Smith, Arkansas and agree to a plea bargain, one of his lawyers told journalists. He resigned last March when Wal-Mart asked federal prosecutors to look into allegations that he had tricked the company out of at least US$500,000 (£283,230).
Wal-Mart says Coughlin funnelled company funds into everything from alcohol to personal vehicles and gifts for his family over a number of years. However, according to Wal-Mart's own lawsuit, Coughlin claimed the reimbursements were for money he spent out of pocket for a 'union project' aimed at keeping organised labour out its stores.
Wal-Mart has denied there was any such project and also sued Coughlin last year to end his retirement agreement - worth upwards of US$12 million (£6.8 million) - and to recover money that Coughlin is accused of misusing. However, that suit was dismissed this week by an Arkansas judge.
Coughlin had previously denied any wrongdoing, while chief executive Lee Scott admitted late last year: 'For me personally and for this company, the Tom Coughlin issue has been an embarrassment.'
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