NEW YORK, May 06, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Amazon.com, Inc. (“Amazon” or the “Company”) (AMZN) and certain of its officers. The class action, filed in the United States District Court for the Western District of Washington, Division of Seattle, and registered as 22-cv-00617, is on behalf of a class consisting of all persons and entities other than the defendants who purchased or otherwise acquired
If you are a shareholder who purchased or otherwise acquired Amazon securities during the Class Period, you have until July 5, 2022 to ask the Court to appoint you as the Lead Plaintiff for the Class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those applying by email are encouraged to include their mailing address, phone number and number of shares purchased.
[Click here for information about joining the class action]
Amazon is a multinational technology company that primarily deals in e-commerce, cloud computing, digital streaming, and artificial intelligence businesses.
On the Company’s Amazon.com e-commerce platform, Amazon sells both third-party merchandise and Amazon’s private label products. As the owner and operator of the Amazon.com e-commerce platform, Amazon has access to certain non-public data of third-party sellers who use the Amazon.com platform.
On or about June 3, 2019, the United States House of Representatives Committee on the Judiciary launched a bipartisan investigation into the state of online competition. The investigation, conducted by the Antitrust, Commercial and Administrative Law Subcommittee (the “Subcommittee”), examined the business practices and market dominance of Facebook, Google, Apple and, particularly relevant , Amazon (the “Investigative Sub-Committee”).
During the subcommittee’s investigation, the subcommittee held several oversight hearings at which various executives of the aforementioned companies, including their respective CEOs, testified on topics such as the effect of market power on the press, innovation and privacy and market dominance of the companies under investigation. After each of the hearings, the members of the subcommittee put questions to the witnesses for the record.
The Complaint alleges that throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Amazon engaged in anti-competitive behavior in its private label business practices, including giving preference to Amazon products against those of its competitors and using third-party sellers’ non-public data to compete with them; (ii) the foregoing has exposed Amazon to increased risk of regulatory oversight and/or enforcement action; (iii) Amazon’s revenue from its private label business was in part the product of impermissible and therefore unsustainable conduct; and (iv) as a result, the defendants’ public statements throughout the Class Period were materially false and/or misleading.
On March 9, 2022, media reported that the House Judiciary Committee had asked the US Department of Justice to open a criminal investigation into Amazon and some of its executives for allegedly lying to Congress about its business practices during the subcommittee’s investigation.
In response, Amazon claimed there was “no factual basis” for the House Judiciary Committee’s allegations.
Then, on April 6, 2022, The the wall street journal published an article titled “SEC Investigating How Amazon Disclosed Business Practices.” The article reported, among othersthat the SEC’s investigation has been ongoing for more than a year and focuses on Amazon’s disclosures regarding its use of third-party seller data for its own private label business.
On this news, Amazon’s stock price fell $105.98 per share, or 3.2%, to close at $3,175.12 per share on April 6, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980