Wal-Mart stock is sinking fast following reports that, according to a new whistle-blower lawsuit, that in its desperate race to catch Amazon in online retailing, Wal-Mart issued misleading e-commerce results and fired an executive who complained the company was breaking the law.
Bloomberg reports that Tri Huynh, a former director of business development at Walmart, claims in a lawsuit filed in San Francisco Thursday that he was terminated “under false pretenses” after repeatedly raising concerns about the company’s “overly aggressive push to show meteoric growth in its e-commerce business by any means possible -- even, illegitimate ones.”
Huynh claims Walmart mislabeled products so that some third-party vendors received lower commissions, failed to process customer returns, and allowed offensive items onto the site.
Huynh’s dismissal in January 2017 -- just a day after a retail-industry publication singled him out as one of the sector’s rising stars -- was in retaliation for warning senior executives about the misdeeds, he said in the lawsuit, filed Thursday by employment litigation attorney David M. deRubertis in San Francisco federal court.
“Wal-Mart sacrificed and betrayed its founder’s key principles of integrity and honesty, pushing those core values aside in its rush to win the e-commerce war at all costs,” the 70-page complaint says, referring to founder Sam Walton. “In doing this, it realized it must silence any whistle-blower who spoke up against its ‘win at all costs’ approach.”
The company also failed to process customer returns on items totaling more than $7 million, which resulted in reporting inflated sales, Huynh said.
Investors are not waiting for a response for now...
The question is - did Wal-Mart go full-Theranos in their 'fake news' results for online growth? Judging by the move after a few minutes... maybe yes, as WMT sinks below its 200DMA
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Full Complaint below...