Coughlin was convicted last year on fraud and tax evasion charges related to nearly $500,000 he embezzled from Wal-Mart.  He received a sentence of home detention and restitution, considered a lenient penalty by many.  Coughlin claimed his poor health posed a significant risk to a traditional jail sentence.

Once reports of Coughlin’s scheme to defraud the retailer became public, Wal-Mart filed the lawsuit settled today in order to halt a retirement package in the $15 million range.  Wal-Mart claimed that Coughlin’s use of falsified expense vouchers to repay himself breached the retirement agreement.

Today's settlement avoids a potentially messy and sensationalized trial at which insider information related to Wal-Mart's inner workings could have become more publicized.

Our content partner, the Morning News, has this post.  We also reported on this related story earlier today. 

UPDATE:  Wal-Mart has filed an 8-K with the SEC that reveals details of its settlement earlier today with former vice chairman Tom Coughlin.

From the text of the document:

“Mr. Coughlin will forego all outstanding rights and claims under the retirement agreement, as well as any additional unpaid or withheld benefits under the company’s retirement and other benefit plans (the total of which is currently estimated at a value of approximately $17 million, not including health benefits).  The company will pay Mr. Coughlin the amount of $6.75 million.”

There you have it: a $6.75 million settlement.

You can read the short regulatory filing for yourself at this link.