Takeaways from Ruling Against Wal-Mart’s Activist Shareholders

The Third Circuit ruled against a Wal-Mart Inc. shareholder, Trinity Wall Street, that tried to force the company to tighten oversight on sales of firearms and other potentially offensive products. Trinity had sought a proxy vote on whether to amend the company’s charter to include a new obligation requiring the board to implement policies and standards to determine if the retail giant should sell certain potentially offensive products. The Third Circuit deemed that Trinity’s efforts did not apply because of a rule that excludes investors from interfering in companies’ day-to-day business operations.