New York, New York, Aug 28, 2022 (Newsfile Corp via COMTEX) -- New York, New York--(Newsfile Corp. - August 28, 2022) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Amazon.com, Inc. ("Amazon" or the "Company") /zigman2/quotes/210331248/composite AMZN -1.08% and reminds investors of the September 5, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Amazon stock or options between July 30, 2021 and April 28, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) . You may also click here for additional information: www.faruqilaw.com/AMZN .
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
Amazon is a global technology company with multiple business lines including, among others, e-commerce services and distribution, website development and hosting, inventory and supply chain management, and fulfillment and logistics. Prior to the onset of the COVID pandemic in early 2020, a key priority for Amazon was increasing 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.
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 that increased demand, Amazon continued expanding its infrastructure and fulfillment network capacity. Indeed, between the end of 2019 and the end of 2021, Amazon more than doubled its warehouse, distribution, and data center space, expanding from 192 million square feet to 387.1 million square feet over that time.
The complaint alleges that, throughout the Class Period, Defendants made numerous false and misleading statements to investors concerning Amazon's continued investments in expanding infrastructure and fulfillment network capacity. Specifically, Defendants repeatedly assured investors that the Company's infrastructure and fulfillment investments were driven not just by recent increased demand related to the pandemic, but also "long-term trends" and "strong multiyear demand." In reality, the Defendants knew or recklessly disregarded that the Company'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. Indeed, contrary to Defendants' public statements during the Class Period, by July 2021, Defendants had already implemented cutbacks to Amazon's fulfillment capacity without disclosing that critical information to investors. As a result of Defendants' misrepresentations and omissions, Amazon's common stock traded at artificially inflated prices during the Class Period.
The truth emerged on April 28, 2022, when 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, Defendants disclosed that day that Amazon was "no longer chasing physical or staffing capacity." Defendants disclosed $6 billion of "incremental costs," including $2 billion due to "overcapacity" in Amazon's "fulfillment and transportation network." Defendants further disclosed that they "expect[ed] the impacts of this . . . to persist for the next several quarters as we grow into this capacity." As a result of these disclosures, Amazon's share price declined precipitously.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Amazon's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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