Walmart sued by former exec alleging unlawful conduct in e-commerce business pinned against Amazon

Walmart shares fell more than 1 percent Thursday after a former executive filed a lawsuit with a federal court in San Francisco, alleging the retailer issued misleading e-commerce results.

Tri Huynh, a former director of business development at Walmart, having also worked at Amazon, says he was terminated by the company under false pretenses in 2017. He said he tried to raise concerns of Walmart's "overly aggressive push to show meteoric growth in its e-commerce business by any means possible — even, illegitimate ones."

Bloomberg first reported on the news.

Representatives from Walmart didn't immediately respond to CNBC's request for comment.

Huynh has accused Walmart of acting in ways that were "violations of the law" in a race to keep up with Amazon, prompting him to speak out.

Court documents, which were reviewed by CNBC, accuse the company of mislabeling products so that third-party vendors were paid lower commissions, sending customers the wrong orders and forcing merchants to deal with greater returns.

This story is developing. Please check back for updates.

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