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Amazon.com Inc.

Case Details

Class Period: February 1, 2019 - April 5, 2022
Date Filed: May 06, 2022
Case Number: 2:22cv00617
Jurisdiction: Washington Western District Court
icon-casetype Case Type: Securities Case
Days Left to
Seek Plaintiff:
50

Case Summary

Amazon is a multinational technology company that engages primarily in the businesses of e-commerce, cloud computing, digital streaming, and artificial intelligence. On the Companys Amazon.com e-commerce platform, Amazon sells both third-party merchandise and Amazons own private-label products. As the owner and operator of the Amazon.com e-commerce platform, Amazon has access to certain non-public data of the third-party sellers that use the Amazon.com platform. On or around June 3, 2019, the U.S. House Committee on the Judiciary initiated a bipartisan investigation into the state of competition online. The investigation, led by the Subcommittee on Antitrust, Commercial and Administrative Law (the Subcommittee), examined the business practices and market dominance of Facebook, Google, Apple, and, of particular relevance, Amazon (the Subcommittee Investigation). In the course of the Subcommittee Investigation, the Subcommittee held several oversight hearings in which various officers of the above referenced companies, including their respective Chief Executive Officers, offered witness testimony on topics such as the effect of market power on the press, innovation, and privacy, and the market dominance of the firms under investigation. After each of the hearings, members of the Subcommittee submitted questions for the record to the witnesses. The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Companys business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Amazon engaged in anticompetitive conduct in its private-label business practices, including giving Amazon products preference over those of its competitors and using third-party sellers non-public data to compete with them; (ii) the foregoing exposed Amazon to a heightened risk of regulatory scrutiny and/or enforcement actions; (iii) Amazons revenues derived from its private-label business were in part the product of impermissible conduct and thus unsustainable; and (iv) as a result, the Defendants public statements throughout the Class Period were materially false and/or misleading. On March 9, 2022, media outlets reported that the House Judiciary Committee had requested that the U.S. Department of Justice open a criminal investigation into Amazon and certain of its executives for allegedly lying to Congress about its business practices during the course of the Subcommittee Investigation. In response, Amazon asserted that there was no factual basis for the House Judiciary Committees allegations. Then, on April 6, 2022, The Wall Street Journal published an article entitled SEC Is Investigating How Amazon Disclosed Business Practices. The article reported, inter alia, that the SECs probe has been underway for more than a year and focuses on Amazons disclosures regarding its use of third-party seller data for its own private-label business. On this news, Amazons stock price fell $105.98 per share, or 3.2%, to close at $3,175.12 per share on April 6, 2022.

Documents
Complaint