Amazon.com, Inc. Class Action Lawsuit - AMZN
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The Amazon class action lawsuit seeks to represent purchasers or acquirers of Amazon.com, Inc. (NASDAQ: AMZN) common stock between July 30, 2021 and April 28, 2022, inclusive (the “Class Period”). The Amazon class action lawsuit – captioned Asbestos Workers Philadelphia Welfare and Pension Fund v. Amazon.com, Inc., No. 22-cv-00934 (W.D. Wash.) – charges Amazon and certain of its top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Amazon class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Amazon class action lawsuit must be filed with the court no later than September 6, 2022.
CASE ALLEGATIONS: The Amazon class action lawsuit arises from defendants’ material misrepresentations and omissions regarding Amazon’s overexpansion of the infrastructure and fulfillment network for its e-commerce business. A key priority for Amazon has been to increase its ability to provide its e-commerce customers with shortened delivery times, including same-day delivery. To meet that goal, Amazon invested significant capital to aggressively expand its infrastructure and fulfillment networks. And in doing so, defendants repeatedly told investors that Amazon’s investments in expanding infrastructure and fulfillment network capacity were sound and appropriate decisions for the long term.
But as the Amazon class action lawsuit alleges, defendants knew or recklessly disregarded that Amazon’s infrastructure and fulfillment network investments substantially outpaced demand, and that those investments were a massive, self-imposed, undue drain on Amazon’s financial condition. In fact, contrary to defendants’ public statements during the Class Period and as later confirmed by The Wall Street Journal, by July 2021, defendants had already implemented cutbacks to Amazon’s fulfillment capacity without disclosing that critical information to investors.
On April 28, 2022, Amazon reported a $3.8 billion net quarterly loss – its first reported net quarterly loss since 2015. After months of falsely representing that Amazon’s expansion of its e-commerce fulfillment network and infrastructure was necessary and appropriate to meet both short-term and long-term customer demand, Amazon disclosed that day that it was “no longer chasing physical or staffing capacity.” Amazon disclosed $6 billion of “incremental costs,” including $2 billion due to “overcapacity” in Amazon’s “fulfillment and transportation network.” Amazon further disclosed that they “expect the effect . . . to persist for the next several quarters as we grow into this capacity.” On this news, the price of Amazon stock fell by more than 14%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Amazon common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Amazon class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Amazon class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Amazon class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.