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Shareholder Alert: Bernstein Litowitz Berger & Grossmann LLP Announces Filing of Securities Class Action Lawsuit Against Amazon.com, Inc.

NEW YORK–(BUSINESS WIRE)–Today, leading investor rights law firm Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) filed a class action lawsuit alleging violations of federal securities laws in the District Court of the Western District of Washington against Amazon.com, Inc. (“Amazon” or the “Company”) and certain of the Company’s senior officers (collectively, the “Defendants”) on behalf of all persons or entities who purchased or otherwise acquired shares of Amazon common stock between July 30, 2021 and April 28, 2022 inclusive (the “Class Period”).

BLB&G filed this action on behalf of its client, Asbestos Workers Philadelphia Welfare and Pension Fund, and the case is captioned Asbestos Workers Philadelphia Welfare and Pension Fund v. Amazon.com, Inc., No. 2:22-cv-00934 (WD Wash.). The complaint is based on a thorough investigation and careful assessment of the merits of this case. A copy of the complaint is available on the BLB&G website by clicking on here.

Alleged Amazon Fraud

Amazon is a global technology company with multiple lines of business, including but not limited to e-commerce services and distribution, website development and hosting, inventory and supply chain management , as well as execution and logistics. Prior to the onset of the COVID pandemic in early 2020, a key priority for Amazon was to increase its ability to provide its e-commerce customers with accelerated delivery times, including same-day delivery. To achieve this goal, Amazon has invested significant capital to aggressively expand its infrastructure and fulfillment networks.

When the COVID pandemic (and related lockdowns and other restrictions) hit in early 2020, consumer demand for goods purchased through Amazon’s e-commerce business skyrocketed. To meet this increased demand, Amazon has continued to expand its fulfillment network infrastructure and capacity. Indeed, between the end of 2019 and the end of 2021, Amazon more than doubled its warehouse, distribution and data center space, from 192 million square feet to 387.1 million square feet during this period.

The Complaint alleges that, throughout the Class Period, the Defendants made numerous false and misleading statements to investors regarding Amazon’s continued investments in infrastructure expansion and fulfillment network capacity. . Specifically, Defendants repeatedly assured investors that the Company’s infrastructure and execution investments were driven not only by recent increases in pandemic-related demand, but also by “long-term trends.” term” and “strong multi-year demand”. In fact, defendants knew or recklessly ignored that the company’s investments in infrastructure and the execution network significantly exceeded demand, and that these investments constituted a massive, self-imposed and undue drain on the financial position of Amazon. Indeed, contrary to Defendants’ public statements during the Class Period, by July 2021 Defendants had already implemented reductions in Amazon’s ability to execute without disclosing this critical information to investors. Due to defendants’ misrepresentations and omissions, Amazon common stock traded at artificially inflated prices during the class period.

The truth came to light on April 28, 2022, when Amazon reported a quarterly net loss of $3.8 billion, its first net quarterly loss since 2015. To meet short-term and long-term customer demand, defendants claimed revealed that day that Amazon was “no more chasing after physical ability or staffing. Defendants disclosed $6 billion in “incremental costs,” including $2 billion due to “overcapacity” in Amazon’s “processing and transportation network.” The defendants further revealed that they “expect[ed] the impacts of this. . . persist for the next few quarters as we acquire this capability. Following these revelations, Amazon’s stock price fell precipitously.

If you wish to act as the lead plaintiff in the class, you must file a motion with the court no later than September 6, 2022, which is the first business day that the U.S. District Court for the Western District of Washington is open. 60 days after the posting date of July 6, 2022. Any member of the proposed class may request to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class .

If you wish to discuss this action or have any questions regarding this notice or your rights or interests, please contact Scott R. Foglietta of BLB&G at 212-554-1903, or by email at [email protected]

About BLB&G

BLB&G is widely recognized around the world as a leading law firm advising institutional investors on matters relating to corporate governance, shareholder rights and securities litigation. Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity and has pioneered the use of the litigation process to achieve unprecedented governance reforms. Unique among its peers, BLB&G has secured many of the largest and largest title recoveries in history, recovering over $37 billion on behalf of defrauded investors. More information about the company can be found online at www.blbglaw.com.