Report: Walmart to ‘vigorously defend’ itself against claims in whistleblower lawsuit
Walmart’s fast-growing e-commerce division is garnering more attention — but for a completely different reason.
The discount giant is being accused of misleading e-commerce results, and firing an executive who complained the company was breaking the law, according to Bloomberg.
According to the report, a whistle-blower lawsuit issued by Walmart’s former director of business development, Tri Huynh, claims 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.”
Walmart said it intends to "vigorously defend" itself against these claims, according to CNBC.
“This litigation is based on allegations by a disgruntled former associate, who was let go as part of an overall restructuring," Walmart said in the CNBC report. "We take allegations like this seriously and looked into them when they were brought to our attention. The investigation found nothing to suggest that the company acted improperly."
Walmart's e-commerce growth has skyrocketed, especially since the company acquired Jet.com. In addition to online sales growth rates that surpassed 50% for the third quarter of 2017, Walmart reported a 23% increase in online sales for the fourth quarter.
The discount giant is being accused of misleading e-commerce results, and firing an executive who complained the company was breaking the law, according to Bloomberg.
According to the report, a whistle-blower lawsuit issued by Walmart’s former director of business development, Tri Huynh, claims 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.”
Walmart said it intends to "vigorously defend" itself against these claims, according to CNBC.
“This litigation is based on allegations by a disgruntled former associate, who was let go as part of an overall restructuring," Walmart said in the CNBC report. "We take allegations like this seriously and looked into them when they were brought to our attention. The investigation found nothing to suggest that the company acted improperly."
Walmart's e-commerce growth has skyrocketed, especially since the company acquired Jet.com. In addition to online sales growth rates that surpassed 50% for the third quarter of 2017, Walmart reported a 23% increase in online sales for the fourth quarter.