SEATTLE, July 08, 2022 (GLOBE NEWSWIRE) — Hagens Berman urges Amazon.com, Inc. (NASDAQ: AMZN) investors who have suffered over $200k losses to submit your losses now. On July 6, 2022, a new securities fraud class action related to disclosures about Amazon.com’s massive infrastructure and fulfillment investments was filed in federal court in Seattle, Washington.
Amazon.com, Inc. (NASDAQ: AMZN) Securities Fraud Class Action:
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During the Class Period, Defendants have repeatedly assured investors that Amazon’s massive infrastructure and fulfillment investments were necessary to meet recent increased demand related to the COVID pandemic and were also justified by “long-term trends” and “strong multiyear demand.”
The new complaint alleges that, unbeknownst to investors, Defendants knew or recklessly disregarded that Amazon’s infrastructure and fulfillment investments substantially outpaced demand and that those investments were a massive self-imposed, undue drain on Amazon’s financial condition.
Defendants’ assurances came into question on Apr. 28, 2022, when Amazon (1) reported a Q1 2022 net loss of $3.8 billion, its first net loss since 2015, (2) revealed the company incurred $6 billion of “incremental costs,” including $2 billion due to “overcapacity” in Amazon’s “fulfillment and transportation network,” and (3) further revealed that it “expect[ed] the impacts of this…to persist for the next several quarters as we grow into this capacity.”
Then, on June 16, 2022 the WSJ reported that “[b]y July 2021 it became clear to [CEO]…Jassy and Amazon’s logistics team that Amazon’s capacity was outpacing demand,” “they made a series of intensifying cutbacks to the plans for capacity growth,” and “[t]hey again cut back capacity growth plans in September and December of 2021.”
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These events have wiped out over $180 billion in shareholder value.
“We’re focused on when Defendants realized Amazon’s buildout strategy poised undisclosed risk to investors,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Amazon and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Amazon should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
