NEW YORK, May 10, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Amazon.com, Inc. (“Amazon” or the “Company”) (NASDAQ: AMZN) in the United States District Court for the Western District of Washington on behalf of investors who purchased Amazon stock between February 1, 2019 and April 5, 2022, inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and misleading statements and failed to disclose that: (1) 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; (2) this exposed Amazon to a heightened risk of regulatory scrutiny and/or enforcement actions; (3) Amazon’s revenues derived from its private-label business were, in part, the product of impermissible conduct and thus unsustainable; and (4) as a result, Defendants’ public statements throughout the Class Period were materially false and/or misleading.
On March 9, 2022, media outlets reported that the House Judiciary Committee had requested that the U.S. Department of Justice open a criminal investigation into Amazon and certain of its executives for allegedly lying to Congress about its business practices during the course of the Subcommittee Investigation. In response, Amazon asserted that there was “no factual basis” for the House Judiciary Committee’s allegations.
Then, on April 6, 2022, The Wall Street Journal published an article entitled “SEC Is Investigating How Amazon Disclosed Business Practices.” The article reported, among other things, that the U.S. Securities and Exchange Commission’s probe has been underway 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 approximately 3.2%, damaging investors.
Investors who purchased or otherwise acquired shares of Amazon should contact the Firm prior to the July 5, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
