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 losses in Amazon stock and wish to serve as lead plaintiff of the Amazon class action lawsuit, please provide your information below. You can also contact Amazon Stock Loss Lawyer Timothy L. Miles by calling 855/846-6529 or via e-mail at [email protected]. Lead plaintiff motions for the Amazon class action lawsuit must be filed with the court no later than September 6, 2022. If you have questions, please contact Amazon Stock Loss Lawyer Timothy L. Miles today.
Allegations in the Amazon Class Action Lawsuit
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 who suffered losses in Amazon stock. If you have questions, or would like additional information, please contact Amazon Loss Lawyer Timothy L. Miles today.
The Lead Plaintiff Process
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased and suffered losses in Amazon Stock to seek appointment as lead plaintiff in the Amazon class action lawsuit. 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 class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. If you suffered losses in Amazon stock, and have further questions about the lead plaintiff process, contact Amazon Stock Loss Lawyer Timothy L. Miles today.
Contact an Amazon Stock Loss Lawyer if You Suffered Losses in Amazon Stock
If you suffered losses in Amazon stock, contact Amazon Stock Loss Lawyer Timothy L. Miles today about an Amazon class action lawsuit, and see what an Amazon Stock Loss Lawyer can do for you.
Timothy L. Miles, Esq.
Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles was recentely selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019). Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, and more.
Timothy L. Miles
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