Judge Denise Langford Morris, sitting in Oakland County, Mich., dismissed the case, ruling it should be heard in Arkansas, where Wal-Mart is based. A spokesman for Ms. Roehm said she and her lawyers hadn't yet decided whether to file there. "In light of this decision, we expect to decide soon how we will proceed," he said.
The original claim, which alleged that Wal-Mart breached its contract when the company fired her, has sparked an unusually vicious legal back-and-forth. Ms. Roehm was dismissed last year because, the company alleges, of a number of ethical violations during her brief tenure at Wal-Mart.
Wal-Mart hit back with a counterclaim that accused her of, among other things, engaging in an improper relationship with a subordinate, Sean Womack, even including e-mails between the two provided by Mr. Womack's wife. Ms. Roehm responded with a 42-page document accusing Wal-Mart CEO Lee Scott and other executives of ethical improprieties.
Ms. Roehm's lawsuit was originally filed in Michigan and then moved to federal court, before it eventually made its way back to Michigan.