By Jonathan Stempel

(Reuters) -Walmart defeated an appeal by shareholders who said the world’s largest retailer defrauded them by failing to disclose that federal prosecutors were investigating its opioid-dispensing practices.

The 3rd U.S. Circuit Court of Appeals in Philadelphia said Walmart did not commit securities fraud by waiting until June 2018 to reveal it was being investigated, 1-1/2 years after the probe began and 10 weeks after a Texas prosecutor warned she intended to indict the company.

Walmart learned of the opioid probe after federal agents raided one of its stores, seeking records concerning two Texas doctors who were prescribing vast amounts of the painkillers.

The company was not indicted, but was hit with a U.S. Department of Justice civil lawsuit in December 2020. A

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