NYPD pension fund sues Amazon over ‘artificially inflated’ stock prices

Jul 13, 2022, 6:00 AM

People walk by an Amazon Go store at the Amazon.com Inc. headquarters on May 20, 2021 in Seattle, W...

People walk by an Amazon Go store at the Amazon.com Inc. headquarters on May 20, 2021 in Seattle, Washington. (Photo by David Ryder/Getty Images)

(Photo by David Ryder/Getty Images)

The pension fund for thousands of New York City police detectives has filed a lawsuit against Amazon in federal court, claiming the company and its executives misled investors and hid losses spurred by the company’s “excessive” expansion during the coronavirus pandemic.

According to the suit, the Detectives’ Endowment Association (DEA) Annuity Fund contends it purchased nearly $3 million in shares of Amazon stock “at artificially inflated prices” before the company eventually revealed $3.8 billion of losses in 2022’s first-quarter earnings report.

“Defendants failed to disclose and actively concealed from investors that rather than being necessary to meet short- and long-term demand, Amazon’s escalated and rapid expansion had created an expensive and unnecessary over-expansion situation that exposed Amazon to massive losses that threatened to cause, and did cause, the material and significant depletion of its earnings,” the lawsuit read.

New York appeals court dismisses AG suit against Amazon

The reported first-quarter losses drove shares down approximately 10% in after-hours trading.

Amazon CEO Andy Jassy, CFO Brian Olsavsky, and Head of Investor Relations David Fildes are listed as the primary defendants in the case.

The police pension fund filed the suit as a class action on behalf of all “persons and entities that acquired Amazon common stock between July 30, 2021 and April 28, 2022.”

Amid Amazon’s significant losses — the first time the company had quarterly losses since 2015 — the head of Amazon’s consumer business, Dave Clark, stepped down July 1 to “pursue other opportunities,” according to an Amazon press release. He left just six weeks after the company’s losses were published.

In an effort to maintain artificially high market prices, the lawsuit claims Amazon employed devices, schemes, and artifices to defraud while making untrue statements about the value of the stock.

“Had [the] plaintiff and the other members of the class known the truth regarding Amazon’s financial results, which was not disclosed by [the] defendants, [the] plaintiff and other members of the class would not have purchased or otherwise acquired their Amazon common stock, or, if they had acquired such securities during the class period, they would not have done so at the artificially-inflated prices that they paid,” the suit read.

Alongside the suit, a coalition of labor unions also filed a complaint with the U.S. Securities Exchange Commission last week, contending Amazon misled investors by publicly sharing “cherry-picked and outdated data” about its warehouse injury rates last spring, according to Geekwire.

Amazon has declined to comment on the situation.

Local News

Amazon walkout...

Bill Kaczaraba

Seattle Amazon workers planning noon walkout Wednesday

Some Amazon workers at Seattle headquarters announced internally their plans to walkout next Wednesday, according to reports.

18 hours ago

hurricane ridge day lodge...

Frank Sumrall

Hurricane Ridge closed indefinitely following Day Lodge fire

Olympic National Park’s Hurricane Ridge will be closed indefinitely after a fire in early May destroyed the Day Lodge.

18 hours ago

Stranger Things Seattle...

Micki Gamez

Seattle ‘Stranger Things the Experience’ brings Netflix series to life

If you are a fan of the Netflix series Stranger Things, then you have to check out 'Stranger Things the Experience' in Seattle.

18 hours ago

kayak westsuit bellevue robbery...

Frank Sumrall

Burglars equipped with kayaks, wetsuits, rob $20K from Bellevue home

Burglars equipped with kayaks and wetsuits, broke into a home in Bellevue along Lake Washington last Thursday, according to police.

18 hours ago

medicaid coverage ending Washington...

KIRO Newsradio staff

Medicaid coverage ending for some in Washington state

Medicaid coverage is ending for some in Washington state as people must resume proving the financial need to continue their health insurance.

18 hours ago


Associated Press

Body of avalanche victim in Washington state recovered after being spotted by volunteer

Search crews have recovered the body of a climber who was one of three killed in an avalanche on Washington's Colchuck Peak in February.

18 hours ago

Sponsored Articles

Internet Washington...

Major Internet Upgrade and Expansion Planned This Year in Washington State

Comcast is investing $280 million this year to offer multi-gigabit Internet speeds to more than four million locations.

Compassion International...

Brock Huard and Friends Rally Around The Fight for First Campaign

Professional athletes are teaming up to prevent infant mortality and empower women at risk in communities facing severe poverty.

Emergency Preparedness...

Prepare for the next disaster at the Emergency Preparedness Conference

Being prepared before the next emergency arrives is key to preserving businesses and organizations of many kinds.

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.

Comcast Ready for Business Fund...

Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.

NYPD pension fund sues Amazon over ‘artificially inflated’ stock prices