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Wal-Mart Stores Inc. has settled a lawsuit it filed to avoid paying millions of dollars in a retirement package for former executive Tom Coughlin, court officials and Coughlin’s attorney said Thursday.

Court officials said terms of the settlement between the former Wal-Mart vice chairman and the Bentonville, Ark.-based retailer would be sealed for 20 days.

Tim Brooks, Coughlin’s attorney, said the settlement included a payment to his client, but he wouldn’t disclose the amount. Wal-Mart did not immediately return a call for comment Thursday afternoon.

Jury selection in the case was set to begin Thursday afternoon.

Wal-Mart (WMT, Fortune 500) sued Coughlin in 2005 in Benton County Circuit Court, claiming it should not have to pay Coughlin because he embezzled hundreds of thousands of dollars from the company pay day loan. The retirement benefits were estimated at between $12 million and $16 million.

Coughlin pleaded guilty in January 2006 to federal charges of wire fraud and tax evasion, and was sentenced to 27 months of home detention plus 5 years probation. He also was ordered to complete 1,500 hours of community service and pay $400,000 in restitution.

In 2006, Circuit Judge Jay Finch dismissed Wal-Mart’s lawsuit, but the Arkansas Supreme Court last year agreed with Wal-Mart that Coughlin was obligated to disclose during retirement negotiations that he was stealing from the retailer. 

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