BENTONVILLE, Ark. (AP)--Wal-Mart Stores Inc. (WMT) is dropping a controversial effort to collect more than $400,000 in health-care reimbursement from a former employee who suffered brain damage in a traffic accident.

The world's largest retailer said in a letter to the family of Deborah Shank it will not seek to collect money the Shanks won in an injury lawsuit against a trucking company for the accident.

Wal-Mart's top executive for human resources, Pat Curran, wrote that Shank's extraordinary situation had made the company re-examine the situation.

Deborah's husband Jim Shank welcomed the news. His lawyer said Wal-Mart deserves credit for doing the right thing.

Wal-Mart has been roundly criticized in newspaper editorials, on cable news shows and by union foes for its claim to the funds, which it made in a lawsuit upheld by a federal appeals court.

  (END) Dow Jones Newswires
  04-01-08 1703ET
  Copyright (c) 2008 Dow Jones & Company, Inc.