By CHUCK BARTELS
Associated Press

A former Wal-Mart ad executive has decided to drop her breach-of-contract lawsuit against the world's largest retailer, saying that the lawsuit had become financially draining and more complex than she had expected.

"I just decided not to pursue it," Julie Roehm said in a telephone interview Monday. She wouldn't elaborate beyond a prepared statement saying her lawsuit had wound up going beyond her effort to recover $1.5 million in severance pay.

She also acknowledged that allegations of ethical breaches she made in her original suit, which was dismissed, contained inaccuracies.

Roehm said the lawsuit brought a financial strain.

In August, a judge threw out Roehm's suit, which was filed in Michigan, saying the matter should be heard in Arkansas, where Wal-Mart is based. With Roehm's decision to not refile, Wal-Mart spokeswoman Mona Williams said Monday the company would drop its countersuit against Roehm.

Roehm said she received no money from Bentonville-based Wal-Mart, the world's largest retailer.

Roehm's statement also said information exchanged among Roehm's lawyer, Wal-Mart, and businessman Irwin Jacobs revealed "the inaccuracy of certain allegations" about Jacobs and Wal-Mart CEO Lee Scott.

Roehm's initial suit sought up to $1.5 million and alleged that Wal-Mart breached its contract with her. Wal-Mart filed a counterclaim accusing Roehm of having an affair with a subordinate, Sean Womack, and of accepting gifts and otherwise showing favoritism toward an agency that was lobbying for Wal-Mart's account. The suit also accused Roehm and Womack of trying to find a job with the ad agency.

In May, Roehm claimed in another court filing that Scott violated the company's ethics policy by accepting trips and discounts on yachts and jewelry from Jacobs, a wealthy entrepreneur who does business with Wal-Mart. Both Wal-Mart and Jacobs denied all of Roehm's claims. Jacobs sued Roehm for defamation.

Roehm said she is content to drop the matter.

"I have decided to accept Wal-Mart's decision to terminate my employment and move on. I am not receiving any money or other compensation to settle my case," Roehm said in the release.

Jacobs, in a statement released to The Wall Street Journal, said he feels vindicated by Roehm's statement and that he'll drop his counterclaim against her.

Roehm departed Wal-Mart in December 2006 after less than a year with the world's largest retailer. Roehm had been brought on to help the company promote more high-end merchandise, a move the company has since backed away from.