Amazon.com, Inc. (3rd Party Seller Data)

  • Active

Investigation
04/06/2022

Initial Lawsuit
05/06/2022

Lawsuit Progression
07/05/2022

Investigation

  • Continous Holding
    February 1, 2019 to April 5, 2022
  • Proposed Claim
    Securities Violation

Has Amazon.com abused its position of power? The Wall Street Journal has published multiple articles, citing internal documents and interviews with former Amazon staffers, finding that the company’s employees routinely use “individual third-party-seller data to develop products for its own brands.”

In April 2022, the journal reported a U.S. Securities and Exchange Commission investigation into how Amazon.com handles “disclosures of its employees’ use of data from sellers on its e-commerce platform.”

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

WSJ Reports SEC Investigation

04/06/2022

News Outlets

The Wall Street Journal reports that the U.S. Securities and Exchange Commission (SEC) is investigating how the company has “disclosed some details of its business practices, including how it uses third-party-seller data for its private-label business, according to people familiar with the matter.”

“The [SEC] is probing how the technology giant—the largest U.S. e-commerce retailer and cloud-computing company—handled disclosures of its employees’ use of data from sellers on its e-commerce platform, the people said. The SEC’s enforcement division has asked for emails and communications from several senior Amazon executives, according to one of the people.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$3175.12 $3281.1 $-105.98 -3.23%
See more on Factual Timeline

Initial Lawsuit

An Amazon.com (AMZN) investor filed a federal securities class action lawsuit on behalf of a class consisting of all persons and entities (other than defendants) that purchased or otherwise acquired Amazon.com’s stock between February 1, 2019 and April 5, 2022, both dates inclusive.

  • Filing Date
    05/06/2022
  • Class Period
    02/01/2019 to 04/05/2022
  • Transgression
    Securities Violation
  • Filing Firms
    Pomerantz LLP
    Badgley Mullins Turner PLLC
  • Case Title
    Joyce v. Amazon.com, Inc.
  • Docket Number
    2:22-cv-00617
  • Court
    Washington Western District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors 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) Amazon’s 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.

Defendants

  • Company
    Amazon.com, Inc.
  • Chief Executive Officer
    Andrew “Andy” R. Jassy
  • Chief Executive Officer
    Jeffrey P. Bezos
  • Chief Financial Officer
    Brian T. Olsavsky
  • General Counsel
    David A. Zapolsky
  • General Counsel
    Nate Sutton

Lawsuit progression

  • Docket Number
    2:22-cv-00617
  • Court
    Washington Western District Court

The lead plaintiff deadline has passed, we will update this page as the lawsuit progresses.
Last event retrieved on 09/24/2022.

[stockdio-historical-chart symbol=”AMZN” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

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