Amazon Prevails in Shareholder Lawsuit Over Third-Party Seller Practices

A federal judge has dismissed a proposed class action lawsuit against Amazon, ruling that shareholders failed to provide sufficient evidence that the company misled them about its treatment of third-party sellers and its capacity expansion strategy. The lawsuit alleged that Amazon manipulated its algorithms to favor its own products, leading to inflated prices for consumers and significant losses for investors after a stock drop in April 2022. Judge John Chun found no compelling evidence of intent to defraud or conceal information from shareholders, stating that the claims were either too vague or misaligned in timing. This ruling prevents the plaintiffs from refiling the case, marking a legal victory for Amazon amidst ongoing antitrust scrutiny from the Federal Trade Commission (FTC). The FTC's lawsuit, alleging that Amazon has abused its market dominance, is set for a bench trial in October 2026. Overall, the dismissal highlights the challenges investors face in proving securities fraud claims against major corporations.