Former 7-Eleven Director Sues Over Retaliation Claims

A former director of 7-Eleven has filed a lawsuit against the retailer, alleging retaliation after he reported food safety concerns. The lawsuit, filed on September 17 in the U.S. District Court for the Northern District of Texas, claims that 7-Eleven violated the employee whistleblower protection provisions of the Food Safety Modernization Act (FSMA).

Whistleblower claims retaliation

Varun Khanna, 7-Eleven’s former director of product development for private label brands, stated that he reported multiple safety concerns during his eight-month tenure. These reports, according to Khanna, delayed or blocked product launches when vendors failed to meet FSMA and FDA requirements.

Khanna’s lawsuit alleges that his termination was a contributing factor of these reports, which are considered “protected activity” under the FSMA. He is seeking unspecified damages, and a 7-Eleven spokesperson declined to comment on the ongoing litigation.

Safety concerns and product delays

Khanna, who joined 7-Eleven in late September 2024, was tasked with “ingredient-led product development”. He reported to Nicole Boyers, the retailer’s vice president of private brands, and held executive-level authority to ensure compliance with FDA regulations.

The lawsuit details how Khanna’s safety concerns impacted various private label products, including powdered hydration sticks, vitamin water, and a juice product. These reports led to delays in product launches, which had been scheduled by Boyers prior to Khanna’s hiring.

In the convenience store industry, where 7-Eleven operates, private label products are a significant focus. The company released 175 proprietary items in its North American stores during fiscal 2025, highlighting the importance of this sector.

Termination and alleged motives

7-Eleven terminated Khanna’s employment in June 2025, approximately three weeks after his last report of alleged FDA non-compliance. Khanna’s attorneys argue that the timing, coupled with the absence of any disciplinary or performance notices during his tenure, suggests a connection between his reports and his dismissal.

The lawsuit states, “7-Eleven’s failure to issue Mr. Khanna any contemporaneous written disciplinary notice nor formal performance failure notice at any time during his entire tenure with 7-Eleven is evidence that Mr. Khanna’s protected activity is a contributing factor causing his abrupt firing.” According to the lawsuit, 7-Eleven later cited issues such as dishonesty, performance problems, lack of improvement, a pattern of lying to avoid trouble, code of conduct violations, and “grossly unethical behavior” as reasons for the termination.