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Amazon wins shareholder lawsuit over third-party sellers and capacity expansion
A U.S. judge dismissed a shareholder lawsuit against Amazon, ruling there was no proof of fraud in its third-party seller policies or expansion plans. The case ties into an FTC antitrust suit set for trial in 2026.
A U.S. District Judge dismissed a lawsuit accusing Amazon.com of misleading shareholders about its handling of third-party sellers and expansion plans, which ultimately led to a Federal Trade Commission (FTC) antitrust case against the company.
Judge John Chun in Seattle dismissed the case with prejudice on Monday, preventing it from being refiled. The shareholders alleged that Amazon concealed an algorithm that prioritized its private-label products over third-party sellers, driving up consumer prices. They also claimed Amazon hid the risks of overexpanding its infrastructure, which led to a $2 billion loss in April 2022 and its first quarterly deficit since 2015.
However, Chun ruled that there was no substantial evidence proving that Amazon executives knowingly misled investors or deliberately covered up the company’s business practices. He stated that the complaint suggested Amazon was simply focused on maximizing corporate profits rather than engaging in fraud.
The FTC sued Amazon in September 2023, alleging it used its market dominance to suppress competition and inflate consumer prices. The lawsuit is backed by 18 U.S. states and Puerto Rico, with a nonjury trial set for October 2026.
The dismissed shareholder lawsuit applied to investors who held Amazon stock between February 1, 2019, and April 28, 2022.
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