Barrack, Rodos & Bacine Files Securities Class Action Lawsuit Against Amazon.com, Inc.

7/8/2022 - Barrack, Rodos & Bacine announces that it has filed a securities class action lawsuit on behalf of purchasers of Amazon.com Inc. common stock (NASDAQ:AMZN) from July 30, 2021 through April 28, 2022 (the "Class Period." Purchasers of Amazon shares who wish to serve as a Lead Plaintiff in this action are required to file a motion for appointment as Lead Plaintiff no later than September 6, 2022.

The complaint alleges that throughout the Class Period, Amazon was engaged in a spending spree to increase its warehouse and fulfillment space. In July 2021, Amazon argued to analysts that demand was driving increased spending in its "fulfillment network," even as those assumptions were questioned by analysts. By the end of 2021 Amazon had expanded the footprint of its data and fulfillment centers to some 387 million square feet, a 100% increase in just two years.  The complaint further alleges that, during the Class Period, defendants made numerous false and misleading statements to investors concerning Amazon’s continued investments in expanding infrastructure and fulfillment network capacity, telling investors that Amazon's infrastructure and fulfillment investments were driven by “long-term trends” and “strong multiyear demand.” Defendants failed to disclose to investors that, throughout the Class Period, Amazon's expansion far outpaced demand and they had cut back the company's fulfillment capacity and related investment on infrastructure.  On April 28, 2022, Amazon posted its first quarterly loss in seven years. The company reported "incremental costs" of $2 billion on the massive expansion in data and fulfillment center space. Amazon belatedly announced that it would pivot into a "cost efficiency" mode, halting further expansion and even canceling planned projects. On this news, the price of Amazon's common stock fell 14%, from its April 28, 2022 closing price of $144.59 to close at $124.28 on April 29, 2022.

Philadelphia-based Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law class actions and taking them to trial, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history of securities litigation. The firm's largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.

To discuss your rights regarding the appointment of lead plaintiff and for additional information about your interest in this class action, please contact either Jeffrey A. Barrack, Esq. at jbarrack@barrack.com or by telephone at (215) 963-0600 or Stephen R. Basser, Esq. at sbasser@barrack.com, or by telephone at (619) 230-0800.  A copy of the complaint is available here.