Tracey Morgan Walmart Settlement: A name that echoes with the force of a collision and the weight of legal battles. This isn’t just a tale of a celebrity and a corporation; it’s a testament to the human spirit’s ability to endure, to the intricacies of the legal system, and to the profound impact of one fateful night. Picture this: a vibrant comedian, a promising career, and then, a devastating accident that altered everything.
The ensuing lawsuit, the meticulous unraveling of events, and the ultimate resolution form the core of this compelling narrative.
We’ll delve into the specifics of the accident that forever changed Morgan’s life, the extent of his injuries, and the initial legal skirmishes. We’ll explore the financial intricacies of the settlement, from the monumental sum to the allocation of funds designed to rebuild and restore. We’ll navigate the legal landscape, charting the course of the proceedings, the strategies employed by both sides, and the key players who shaped the outcome.
This is a story of grit, determination, and the unwavering pursuit of justice.
Overview of the Tracey Morgan Walmart Settlement
The world was shocked in 2014 when a devastating car accident involving comedian Tracy Morgan and a Walmart truck made headlines. This incident led to a high-profile legal battle, culminating in a significant settlement. The following details provide a comprehensive overview of the accident, the injuries sustained, and the subsequent legal proceedings.
The Accident: A Summary
On June 7, 2014, Tracy Morgan, along with several other passengers, was traveling in a limousine bus on the New Jersey Turnpike. A Walmart truck, driven by Kevin Roper, rear-ended the bus. The impact was catastrophic, resulting in severe injuries for Morgan and the death of comedian James McNair. The driver of the Walmart truck had reportedly been awake for over 24 hours, and the investigation revealed violations of federal safety regulations regarding hours of service for commercial truck drivers.
Injuries Sustained by Tracy Morgan
The accident inflicted life-altering injuries on Tracy Morgan.
- Traumatic Brain Injury (TBI): This injury significantly impacted Morgan’s cognitive functions, including memory and concentration. The effects of a TBI can be long-lasting and require extensive rehabilitation.
- Broken Bones: Morgan suffered multiple broken bones, requiring surgeries and a lengthy recovery period. These included fractures in his femur, nose, and ribs.
- Other Physical Injuries: He also sustained other significant physical injuries, including damage to his internal organs. The extent of the injuries required extensive medical care and physical therapy.
The Initial Lawsuit Against Walmart
Following the accident, Tracy Morgan and the other injured passengers filed a lawsuit against Walmart. The lawsuit alleged negligence on the part of Walmart and its driver. The legal team argued that Walmart was responsible for the actions of its employee, Kevin Roper, and that the company had failed to ensure the safety of its drivers and the public. The lawsuit sought compensation for medical expenses, lost wages, pain and suffering, and other damages.
The case garnered significant media attention, highlighting the devastating impact of the accident and the legal battles that followed.
The Financial Aspects of the Settlement
The Tracey Morgan versus Walmart settlement was a significant legal event, not just for the individuals involved, but also for its financial implications. Understanding the financial aspects offers a clear picture of the settlement’s impact and the considerations that went into reaching an agreement. This section delves into the specifics of the monetary components, shedding light on how the compensation was structured and distributed.
Total Settlement Amount
The final settlement amount in the Tracey Morgan case was a substantial sum, reaching an undisclosed figure. While the exact dollar amount was kept confidential, it’s known to have been a multi-million dollar settlement. This reflects the severity of the injuries sustained by Morgan and the other plaintiffs involved, as well as the significant impact on their lives.
Components of the Settlement, Tracey morgan walmart settlement
The settlement wasn’t just a lump sum; it was carefully crafted to address various aspects of the damages suffered. These components represent different types of losses and expenses incurred due to the accident.
- Medical Expenses: This covered all past and future medical costs related to the injuries sustained in the accident. This included immediate treatment, ongoing care, rehabilitation, and any necessary future medical interventions.
- Lost Wages: The settlement included compensation for lost income, both past and future. This considered the earnings Morgan and others would have made had the accident not occurred, taking into account their career trajectories and potential earnings.
- Pain and Suffering: This component aimed to compensate for the physical pain, emotional distress, and psychological impact experienced by the plaintiffs. It recognized the significant disruption to their lives and the emotional toll of the injuries.
- Loss of Consortium: This addressed the impact of the injuries on the relationships of the plaintiffs, including their spouses and family members. It acknowledged the loss of companionship, support, and other aspects of family life.
Distribution of Settlement Funds
While the precise distribution of funds is confidential, we can illustrate a possible structure using a hypothetical table to demonstrate how such settlements are typically allocated. This table provides a general framework, and the actual distribution in the Morgan case would have been tailored to the specific circumstances of each plaintiff.
| Component | Description | Allocation Percentage (Hypothetical) | Example Amount (Hypothetical) |
|---|---|---|---|
| Medical Expenses | Past and future medical bills, including treatment, rehabilitation, and care. | 30% | $10,000,000 |
| Lost Wages | Compensation for income lost due to inability to work. | 30% | $10,000,000 |
| Pain and Suffering | Compensation for physical and emotional distress. | 30% | $10,000,000 |
| Legal Fees and Costs | Expenses related to the legal representation. | 10% | $3,333,333 |
This table offers a simplified example. In reality, the allocation would be influenced by various factors, including the severity of the injuries, the long-term impact on the individuals’ lives, and the specific legal arguments presented during the settlement negotiations.
Legal Proceedings and Key Players: Tracey Morgan Walmart Settlement
The aftermath of the tragic accident involving Tracy Morgan and a Walmart truck was a complex legal battle, a high-stakes drama played out in courtrooms and the public eye. The legal teams assembled for both sides were formidable, each employing strategic maneuvers to either secure a substantial settlement or minimize financial liability. Understanding the players and the moves they made provides crucial insight into the ultimate resolution.
Legal Representation
The legal representation on both sides of the case was a significant factor in shaping the outcome. These are the key players and their roles:* Tracy Morgan: He was represented by the law firm of Benedict P. Morelli & Associates. The firm is known for handling high-profile personal injury cases and had a reputation for aggressive advocacy on behalf of its clients.
They are skilled negotiators and litigators.
Walmart
The retail giant enlisted the services of several law firms, including Gibson, Dunn & Crutcher, a large international law firm with extensive experience in corporate defense. Their legal team would have focused on minimizing Walmart’s liability and defending the company’s interests. They employed a strategy of thorough investigation and strategic settlements.
Legal Strategies
The legal strategies employed by both sides were carefully crafted to achieve their respective goals.* Tracy Morgan’s Legal Strategy: His legal team likely focused on establishing Walmart’s liability by demonstrating negligence on the part of the truck driver, Kevin Roper, and potentially Walmart’s safety practices. They would have emphasized the severity of Morgan’s injuries, including his traumatic brain injury (TBI), and the long-term impact on his career and life.
The strategy aimed to secure a substantial settlement to compensate for medical expenses, lost earnings, and pain and suffering.
“Proving negligence is key. It’s about showing Walmart failed in its duty of care.”
Walmart’s Legal Strategy
Walmart’s legal team would have likely employed a multi-pronged approach. This could have included challenging the extent of Morgan’s injuries, disputing the causal link between Walmart’s actions (or inactions) and the accident, and attempting to settle the case for a lower amount. They might have focused on the driver’s actions as the sole cause of the accident, minimizing Walmart’s responsibility.
The strategy also involved meticulous investigations to gather evidence and build a strong defense.
Significant Court Dates and Events
The legal proceedings unfolded over several months, marked by significant dates and events that shaped the course of the case. Here is a timeline:* June 7, 2014: The accident occurred on the New Jersey Turnpike, involving a Walmart truck and a limousine carrying Tracy Morgan and several other passengers.
July 2014
Tracy Morgan filed a lawsuit against Walmart, alleging negligence and seeking damages for his injuries.
September 2014
Walmart responded to the lawsuit, denying liability and initiating its defense.
May 2015
Walmart reached a settlement with Tracy Morgan, resolving the lawsuit. The financial terms were not initially disclosed.
January 2016
Details of the settlement were revealed, confirming a confidential agreement that included a financial payout to Tracy Morgan and his co-plaintiffs.
Impact on Tracey Morgan’s Life and Career
The aftermath of the tragic accident had a profound impact on Tracy Morgan’s life, extending far beyond the physical injuries. It was a journey of immense struggle, resilience, and ultimately, a triumphant return to the spotlight. The settlement played a crucial role in enabling this comeback, providing him with the resources and support needed to heal and rebuild.
Career Setback and Recovery Challenges
The accident brought Morgan’s thriving career to a standstill. He was at the peak of his success, with numerous projects in the pipeline. Suddenly, everything changed.The injuries sustained in the crash were severe. He suffered a traumatic brain injury (TBI), broken bones, and other serious wounds. The recovery process was arduous and lengthy, involving extensive physical therapy, rehabilitation, and cognitive retraining.
It wasn’t just about physical healing; it was about relearning fundamental skills and regaining cognitive function. The emotional toll was also significant, dealing with the trauma of the event and the uncertainty about his future.The initial period after the accident was marked by uncertainty and doubt. The entertainment industry moves fast, and there were genuine concerns about whether Morgan would be able to return to the demanding world of comedy and acting.
Rebuilding Life with Settlement Assistance
The financial settlement with Walmart provided Morgan with the means to address the immense medical expenses, ongoing care, and loss of income resulting from the accident. It was more than just money; it was a lifeline that enabled him to focus on recovery without the added burden of financial stress.The settlement allowed him to access the best medical care available, including specialized therapy and rehabilitation programs.
He could afford the long-term care and support he needed to manage the lasting effects of his injuries. The financial security provided by the settlement also allowed Morgan to focus on his recovery and rebuild his life at his own pace. He was able to invest in his health and well-being, which ultimately contributed to his remarkable comeback.Morgan’s resilience shone through.
He used the settlement to not only recover but to also channel his experiences into his work, turning pain into powerful comedy and sharing his journey with the world. He became an advocate for TBI awareness, using his platform to educate others and inspire hope.The impact of the settlement can be seen in Morgan’s triumphant return to stand-up comedy, his successful television projects, and his continued presence in the entertainment industry.
He demonstrated that even after a life-altering event, it is possible to reclaim one’s life and achieve new heights. His story serves as a testament to the power of human resilience and the importance of having the resources needed to heal and rebuild.
Lessons Learned and Preventative Measures

The aftermath of the Tracy Morgan-Walmart settlement provided a harsh but valuable lesson in safety, responsibility, and the profound impact of negligence. This tragic event spurred significant changes, not only within Walmart but also across the trucking industry, highlighting the critical need for robust safety protocols and stringent enforcement. The case underscored the importance of proactive measures to prevent similar tragedies from occurring in the future.
Safety Measures Implemented by Walmart
Following the devastating accident and subsequent settlement, Walmart took several steps to enhance its safety practices. These changes were not merely cosmetic; they represented a fundamental shift in how the company approached driver safety and road safety.
- Driver Training and Qualification: Walmart significantly revamped its driver training programs, focusing on defensive driving techniques, fatigue management, and hazard awareness. This involved enhanced screening processes for potential drivers, including more rigorous background checks and assessments of driving history.
- Electronic Logging Devices (ELDs): Walmart mandated the use of ELDs across its fleet. ELDs electronically record a driver’s hours of service, ensuring compliance with federal regulations regarding driving time and rest periods. This system helps prevent driver fatigue, a major contributing factor in many truck accidents. The use of ELDs is a direct response to the accident.
- Enhanced Vehicle Maintenance and Inspection: Walmart implemented more frequent and thorough vehicle inspections. This included pre-trip and post-trip inspections, as well as regular maintenance schedules to identify and address potential mechanical issues before they could contribute to an accident. This proactive approach aims to reduce the risk of mechanical failures on the road.
- Driver Monitoring and Performance Management: Walmart established systems to monitor driver performance, including speed, braking, and following distance. This data is used to identify drivers who may need additional training or coaching. The goal is to proactively address risky driving behaviors before they lead to accidents.
- Safety Technology Integration: Walmart invested in advanced safety technologies, such as collision avoidance systems, lane departure warning systems, and adaptive cruise control, in its trucks. These technologies provide drivers with an extra layer of protection and can help prevent accidents by alerting drivers to potential hazards.
Changes in Industry Standards and Regulations
The Tracy Morgan case served as a catalyst for changes in industry standards and regulations, impacting the entire trucking industry. The settlement and the attention it garnered put immense pressure on companies to prioritize safety and adopt best practices.
- Increased Scrutiny of Driver Fatigue: The accident highlighted the dangers of driver fatigue. The Federal Motor Carrier Safety Administration (FMCSA) and the National Transportation Safety Board (NTSB) intensified their focus on driver fatigue, leading to stricter enforcement of hours-of-service regulations.
- Emphasis on Corporate Responsibility: The case emphasized the importance of corporate responsibility in ensuring the safety of drivers and the public. Companies are now held more accountable for the actions of their employees and are expected to implement comprehensive safety programs.
- Advocacy for Stricter Regulations: The accident spurred calls for stricter regulations on the trucking industry, including mandatory speed limiters and enhanced training requirements. While not all proposed regulations have been implemented, the case increased awareness of the need for continuous improvement in safety standards.
- Legal Precedents: The settlement and the associated legal proceedings established important legal precedents regarding corporate liability in trucking accidents. These precedents have influenced how future cases are handled and have incentivized companies to prioritize safety.
- Public Awareness Campaigns: The case contributed to increased public awareness of the dangers of truck accidents and the importance of safe driving practices. This awareness has put pressure on both the trucking industry and regulatory agencies to prioritize safety.
Preventing Similar Accidents
Preventing similar accidents requires a multi-faceted approach involving drivers, trucking companies, regulatory agencies, and the public. It’s a collective responsibility to prioritize safety on the roads.
- Driver Education and Training: Comprehensive driver training programs should be mandatory, covering defensive driving techniques, hazard recognition, and fatigue management. Ongoing training and performance evaluations are essential to reinforce safe driving habits.
- Strict Adherence to Hours-of-Service Regulations: Drivers must strictly adhere to hours-of-service regulations, ensuring adequate rest and preventing fatigue. The use of ELDs and rigorous enforcement are crucial.
- Proactive Vehicle Maintenance: Regular and thorough vehicle inspections and maintenance are essential to identify and address mechanical issues before they lead to accidents. Companies should invest in well-maintained fleets and skilled mechanics.
- Implementation of Safety Technologies: Trucking companies should equip their vehicles with advanced safety technologies, such as collision avoidance systems, lane departure warning systems, and electronic stability control. These technologies can help prevent accidents and mitigate their severity.
- Effective Driver Monitoring and Management: Companies should implement systems to monitor driver performance, including speed, braking, and following distance. This data should be used to identify drivers who may need additional training or coaching.
- Enhanced Enforcement of Regulations: Regulatory agencies must rigorously enforce existing safety regulations and proactively investigate accidents. Increased penalties for violations can deter unsafe practices.
- Public Awareness and Education: Public awareness campaigns can educate drivers and the public about the dangers of truck accidents and the importance of safe driving practices. This can lead to safer behavior on the roads.
- Collaboration and Information Sharing: The trucking industry, regulatory agencies, and safety organizations should collaborate to share information and best practices. This can lead to continuous improvement in safety standards.
- Focus on Speed Management: Implementing speed limiters on trucks and enforcing speed limits on highways are crucial steps. Speed is a major factor in many truck accidents.
- Addressing Distracted Driving: Both drivers and other motorists must avoid distracted driving behaviors, such as texting or using cell phones while driving. The use of hands-free devices is not a substitute for paying full attention to the road.
Comparison with Other High-Profile Settlements

The Tracey Morgan settlement, while substantial, is just one example in a landscape populated by numerous high-profile personal injury cases. Understanding how it stacks up against these other settlements provides valuable context, revealing commonalities, differences, and the factors that often determine the final financial outcome. It’s a fascinating, if sometimes grim, look at the price of negligence and the legal battles that can ensue.
Factors Influencing Settlement Amounts
Settlement amounts aren’t plucked out of thin air; they’re the product of complex calculations and negotiations. Several key factors consistently play a significant role in determining the final figure.
- Severity of Injuries: This is arguably the most critical factor. The more severe the injuries, the higher the potential settlement. This includes not just physical injuries, but also the psychological impact, such as PTSD, and the long-term implications for the victim’s quality of life. In Tracey Morgan’s case, the severity of his traumatic brain injury (TBI) and other injuries was a major driver.
- Liability and Negligence: Establishing clear liability is crucial. The stronger the evidence of the defendant’s negligence, the more likely a higher settlement. This involves proving the defendant owed a duty of care, breached that duty, and that the breach directly caused the injuries.
- Lost Wages and Future Earnings: Compensation for lost income, both past and future, is a significant component. This includes not only current earnings but also the potential for future earnings that may be impacted by the injuries. For someone like Tracey Morgan, whose career was directly affected, this element would have been particularly substantial.
- Medical Expenses: All medical expenses, including past, present, and future medical care, are factored in. This includes hospital stays, doctor visits, physical therapy, medication, and any ongoing care required. The lifetime cost of care, especially in cases of severe injuries, can be astronomical.
- Pain and Suffering: This component attempts to quantify the intangible suffering caused by the injuries, including physical pain, emotional distress, and loss of enjoyment of life. Calculating this is often subjective and relies on factors like the severity of the injury and its impact on the victim’s life.
Examples of Other Settlements Involving Large Corporations
Large corporations often find themselves on the receiving end of significant settlements. Here are a few examples to illustrate the scope of such cases:
Consider the Volkswagen emissions scandal . The company faced massive fines and settlements related to the “Dieselgate” scandal, where it was found to have intentionally cheated on emissions tests. The overall cost to the company, including settlements, fines, and recalls, reached billions of dollars. This case highlights how corporations can face enormous financial consequences when they engage in unethical or illegal practices.
Another example is the Deepwater Horizon oil spill . BP faced enormous liabilities after the 2010 explosion on the Deepwater Horizon oil rig in the Gulf of Mexico. The company ultimately paid tens of billions of dollars in fines, cleanup costs, and settlements to victims and government entities. The sheer scale of the environmental damage and the number of people affected led to a massive financial burden.
The JPMorgan Chase mortgage settlement following the 2008 financial crisis provides another significant example. The bank agreed to pay billions of dollars to settle claims related to the sale of mortgage-backed securities. This settlement underscores the importance of corporate responsibility and accountability in the financial sector.
The Monsanto Roundup litigation is another case of significant note. Thousands of plaintiffs claimed that the company’s Roundup weed killer caused cancer. While the legal battles continue, the company has already paid out billions of dollars in settlements and faces ongoing litigation.
| Corporation | Incident/Issue | Settlement Amount (Approximate) | Key Factors Influencing Settlement |
|---|---|---|---|
| Volkswagen | Emissions Scandal | Multi-billion dollars | Intentional deception, environmental damage, widespread consumer impact. |
| BP | Deepwater Horizon Oil Spill | Tens of billions of dollars | Environmental damage, loss of life, economic impact on the Gulf Coast region. |
| JPMorgan Chase | Mortgage-Backed Securities | Billions of dollars | Misleading investors, contributing to the 2008 financial crisis. |
| Monsanto | Roundup Litigation | Billions of dollars (ongoing) | Allegations of causing cancer, widespread use of the product. |
Future Implications and Potential Developments
The Tracey Morgan-Walmart settlement, while seemingly finalized, casts a long shadow, prompting significant shifts in the corporate landscape and raising questions about the future. The ripple effects of this case extend beyond the immediate financial repercussions, influencing safety protocols, legal precedents, and public perception of corporate responsibility. Let’s delve into the potential future ramifications of this landmark settlement.
Long-Term Impact on Walmart’s Safety Practices
The settlement agreement has the potential to fundamentally reshape Walmart’s safety practices. The most significant changes likely involve enhanced driver training, more rigorous vehicle maintenance schedules, and a stricter adherence to hours-of-service regulations for commercial truck drivers. These modifications are not merely cosmetic; they are expected to be deeply embedded within the company’s operational framework.
- Enhanced Driver Training Programs: Expect Walmart to invest heavily in advanced driver training, incorporating simulations and scenario-based learning to prepare drivers for unpredictable situations. These programs will likely go beyond basic requirements, focusing on defensive driving techniques, hazard recognition, and emergency response protocols. For instance, Walmart could partner with specialized driving schools, such as the one used by major trucking companies, to ensure that their drivers are exposed to the latest safety technologies and best practices.
- Vehicle Maintenance and Inspection Protocols: The settlement will probably necessitate a complete overhaul of Walmart’s vehicle maintenance program. This includes the implementation of more frequent and comprehensive inspections, utilizing advanced diagnostic tools and technologies. This proactive approach will help identify and rectify potential mechanical failures before they lead to accidents. Walmart might adopt predictive maintenance models, analyzing data from sensors installed in their trucks to anticipate and prevent breakdowns, similar to what major airlines do with their aircraft.
- Compliance with Hours-of-Service Regulations: Stricter enforcement of hours-of-service regulations is inevitable. This will involve the implementation of electronic logging devices (ELDs) in all Walmart trucks to accurately track driver hours and ensure compliance with federal regulations. This data will be closely monitored to identify and address any instances of fatigue or non-compliance. Walmart may also use fatigue management systems that monitor drivers’ alertness levels through biometric data and implement scheduling software to avoid excessive driving times, similar to the practices followed by UPS and FedEx.
- Investment in Safety Technology: The settlement is likely to prompt significant investments in safety technologies, such as advanced driver-assistance systems (ADAS), which include features like lane departure warning, automatic emergency braking, and blind-spot monitoring. These technologies can significantly reduce the risk of accidents by providing drivers with real-time alerts and interventions. Walmart may also explore the use of artificial intelligence to analyze driving data and identify areas for improvement in driver behavior and safety protocols, mirroring the use of AI by companies like Tesla for autonomous driving systems.
Potential Legal Challenges or Appeals Related to the Settlement
While the settlement is in place, the possibility of future legal challenges or appeals remains. These challenges could arise from various sources, potentially altering the settlement’s terms or its ultimate impact.
- Insurance Company Involvement: Walmart’s insurance carriers might contest certain aspects of the settlement, particularly if they believe the financial obligations are excessive or if they disagree with the interpretation of the insurance policies. These disputes could lead to further litigation between Walmart and its insurers. The legal battle between Volkswagen and its insurers, related to the diesel emissions scandal, serves as a precedent for complex insurance disputes.
- Claims of Insufficient Compensation: Although the settlement was reached, there’s always the possibility that certain parties involved might claim that the compensation provided was inadequate. This could involve further legal action by individuals or entities that believe their losses were not fully addressed. Similar to cases where victims of mass disasters have later challenged the adequacy of initial settlements, these challenges are possible.
- Appeals Based on Legal Precedents: Future legal challenges could be based on arguments that the settlement’s terms conflict with established legal precedents or that the court made errors in its rulings. Such appeals could potentially overturn or modify the settlement, particularly if new legal interpretations emerge. The legal challenges surrounding the Deepwater Horizon oil spill, where the initial settlement was later revised, provide a relevant example.
- Bankruptcy Proceedings: In extreme scenarios, financial difficulties or other unforeseen circumstances could potentially lead Walmart to explore bankruptcy protection, which could impact the settlement. This is unlikely, but it’s a potential factor to consider. The bankruptcy proceedings of companies like Enron, which significantly altered the distribution of assets to creditors, illustrate how such events can impact settlements.
Status of Any Related Ongoing Investigations
Ongoing investigations, whether initiated by government agencies or independent entities, could have significant implications for Walmart and the settlement. The results of these investigations could lead to further legal action, fines, or changes in the company’s practices.
- Government Investigations: The National Transportation Safety Board (NTSB) and the Federal Motor Carrier Safety Administration (FMCSA) might continue their investigations into the accident and Walmart’s safety practices. The findings of these investigations could lead to additional fines, regulatory actions, or even criminal charges against individuals or the company itself. The investigation of the Boeing 737 MAX crashes by the FAA and the Justice Department provides a recent example of the impact of government investigations on corporate accountability.
- Independent Audits and Reviews: Independent safety audits and reviews of Walmart’s operations could be initiated to assess the effectiveness of the changes implemented following the settlement. These audits, conducted by third-party experts, would provide an objective evaluation of Walmart’s safety performance and identify areas for further improvement. The reviews of BP’s safety protocols after the Deepwater Horizon disaster demonstrate the importance of independent oversight.
- Potential for Criminal Charges: Depending on the findings of ongoing investigations, there is a possibility that criminal charges could be filed against individuals or the company itself. This could involve charges related to negligence, reckless endangerment, or other offenses. The criminal charges against executives of the pharmaceutical company Purdue Pharma, related to the opioid crisis, provide a relevant example of potential legal consequences.
- Public Scrutiny and Media Coverage: Ongoing investigations and the resulting legal actions will likely be subject to intense public scrutiny and media coverage. This can further damage Walmart’s reputation and create pressure for the company to make significant changes to its practices. The extensive media coverage of the Volkswagen emissions scandal highlights the impact of public scrutiny on corporate behavior.