Walmart Inc. shares turned sharply lower before recouping some losses on Thursday, after reports that a former executive has filed a suit with 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 Walmart issued misleading results from that business and that he was fired when he complained, Bloomberg reported, citing court documents. The conduct happened as the company raced to catch up with rival Amazon.com Inc. , he said. Huynh claims 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 it its e-commerce business for the past year. The company was not immediately available to comment to Bloomberg. MarketWatch has also asked for comment. Shares were down 0.5%, after falling about 2% at their lowest level.
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