Class Action Lawsuit Brought Against Amazon
A number of class action lawsuits have been filed against the Internet retail giant Amazon, with plaintiffs claiming that the company provided misleading information in relation to its financial affairs and the state of its finances.The plaintiffs in the class action suits are shareholders and the suits have been filed by companies that represent stockholders. The lawsuits were filed in Washington and the allegations made in the suits include claims that Amazon provided misleading information and filed false statements to inflate the price of its securities.
It was further claimed that the company falsely inflated profits made from start up investments as well as failing to reveal the revenue was largely in shares. Amazon has denied the allegations made in the class action lawsuits.
A spokesperson for the company stated: "We have always worked hard to be extremely open, careful and accurate in our public disclosures. It is clear these lawsuits are without merit, and we expect that they will be dismissed by the court."
Topic Added March 20th, 2006
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