Does the reticle stay locked to the image when you rotate the reticle focus? That is, does the point of aim stay constant? If so, the scope will work, even though it is not ideal. I doubt that Leupold will admit it is faulty.
If the scope has a fast focus (no locking ring) and the reticle changes point of aim when you adjust focus, I recommend that you send it back. I've seen this happen with the new VX2 scopes. Others have not seen it.