Bentonville, AR. Walmart Accused of Inflating Its Online Sales
DID WALMART INFLATE ITS ONLINE SALES NUMBERS?
Walmart stock soared in recent months largely on the strength of its online sales numbers---but one former Walmart worker charges that the retailer is cooking its books.
The company’s former director of business development,Tri Huynh, filed papers in a wrongful termination suit which purport to show that Walmart has used inflated online sales numbers to appear more competitive with Amazon.
Huynh said Walmart overcharged vendors that sell on its third-party marketplace for months, which gave the appearance that the company was selling more than it actually was. Hunyh said Walmart also underreported merchandise returns and refunds by $7 million, and used its acquisition of Jet.com to list the same item on both Jet and Walmart’s sites, reporting the items’ sales with different store-keeping units.
Walmart dismisses the lawsuit as just one “disgruntled former associate,” and says their own internal investigation revealed no improper actions.
What you can do: Given the adrenaline rush that boosted Walmart stock---until disappointing Q4 numbers came out for ecommerce---some stockholders may want more than internal review—and Walmart may need to settle Huynh’s lawsuit pretty damn quick: