Walmart cheated on e-commerce results amid Amazon pressure, says Whistleblower

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A Bloomberg report suggests that Walmart is now in the final leg of striking a deal that will see it spending about $7 billion to become the largest investor in India's leading homegrown e-commerce firm, Flipkart, which is now locked in a fierce battle with Amazon.

Nevertheless, Huynh continued to press the company to correct internal control failures that he believed if not addressed could seriously impact Walmart's e-commerce business, says the lawsuit, included mischaracterizations of third-party products that allowed Walmart to collect commissions in excess of amounts specified in agreements with the third-party sellers and failures to process customer returns, resulting in inflated sales figures. "In doing this, it realized it must silence any whistleblower who spoke up against its "win at all costs" approach to e-commerce growth". But in its most recent e-commerce sales reports for the quarter, online sales were up by only 23%, stoking concerns that the company was struggling to build a robust e-commerce business.

In his lawsuit, which was filed in a US District Court in San Francisco, Hyunh alleges that "Walmart 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 investigation found nothing to suggest that the company acted improperly".

Additionally, Walmart classified some returns from e-commerce customers improperly, a problem that skewed the company's online financial results, the lawsuit charged. The US company is the world's largest retailer, but it has struggled against Amazon as consumers increasingly migrate to online commerce.

'Tri believed he was performing his job responsibly by reporting issues that affected Walmart's Marketplace, ' says his lawyer, David deRubertis.

American multinational retail corporation Walmart is set to join hands with e-commerce site Flipkart to expand its business and invest $7 billion in India. The company has increased e-commerce spending, including roughly $3 billion for its 2016 acquisition of startup Jet.com.

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The burgeoning e-commerce sector in India has been on an upswing of late and, according to an assessment by investment bank Morgan Stanley, will swell at a 30 per cent compound annual growth rate and be worth $200 billion by 2026. That commission depends on the product.

In addition to overblowing digital sales, Huynh also said Walmart's practices helped inflate the size of its online assortment, which has been dwarfed by Amazon's for years.

Huynh said corporate superiors brushed off his complaints. Ultimately, he alleged he was sacked days after he sent his concerns to Walmart e-commerce CEO Marc Lore and Michael Bender the company's chief operating officer for e-commerce.

Huynh claims he was sacked in retaliation for being a whistleblower and is seeking unspecified damages.

Huynh's lawsuit seeks damages for lost wages and other economic losses, along with emotional distress.

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