Walmart sued by former executive alleging unlawful conduct in e-commerce: reports

Walmart Inc. shares WMT, -0.17% turned sharply lower before recouping some losses Thursday, after reports that a former executive has filed a suit in a federal court in California, alleging that the retail giant engaged in unlawful conduct with respect to its e-commerce business. The executive, Tri Huynh, a former director of business development, said that Walmart issued misleading results from that business and that he was fired when he complained, Bloomberg reported, citing court documents. The alleged conduct occurred as the company raced to catch up with online archrival Amazon.com Inc. AMZN, -0.38% , he said. Huynh claims in the suit that Walmart mislabeled products so that third-party vendors were paid lower commissions and failed to process customer returns, said Bloomberg. Walmart has aggressively invested in its e-commerce business over the past year. The company was not immediately available to comment, according to the report. MarketWatch has also asked for comment. Shares were down 0.5%, after falling about 2% to their lowest intraday level.

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