Amazon sued by New York police union for hiding billions of dollars in losses

According to foreign media reports, the New York Police Department's Association ( DEA ) recently filed a lawsuit in federal court , with Amazon , a leading U.S. retail company , as the defendant . The reason for the lawsuit was that Amazon had committed serious illegal acts of deceiving investors.

The lawsuit pointed out that during the peak of the epidemic , Amazon invested $6 billion to expand its warehouse space, data construction and other infrastructure. By the end of 2021, the company's production capacity had more than doubled, with a warehouse area of ​​more than 387.1 million square feet. However, it failed to gain a deep understanding of the market and expanded blindly, resulting in billions of dollars in losses .

New York Police Union Complaint

The New York Police Union claimed that in order to cover up its losses, raise the company's stock price and build investor confidence, Amazon purchased nearly $3 million worth of Amazon stock at " artificially inflated prices " before the disclosure of its first-quarter financial report , giving investors and the public the wrong message and confidence that Amazon's development momentum is still strong .

According to relevant reports, Amazon lost $3.8 billion in the first quarter of 2022. After this information was disclosed in the financial report , Amazon's stock value plummeted, causing significant losses to the New York Police Union and other investors.

The lawsuit also pointed out that as early as July last year , Amazon had realized the over-expansion caused by strategic mistakes and carried out large-scale layoffs to reduce losses . However, Amazon concealed these facts from the public and deceived investors , saying that these expansion plans were necessary and ongoing .

What is even more thought-provoking is that just over a month after Amazon disclosed its first-quarter losses , Dave Clark, CEO of Amazon's global consumer division who led the massive expansion , announced his resignation. Since then, Amazon has announced the departure or job transfer of a number of senior executives .

The New York Police Union formally filed a lawsuit against Amazon in the Seattle federal court on July 8 , with three Amazon executives as defendants: Amazon CEO Andy Jassy, ​​Chief Financial Officer Brian Olsavsky and Investor Relations Director David Fildes.

Amazon has not yet made any statement or response to this lawsuit .

Coincidentally , about a week before the lawsuit was filed, a union alliance filed a complaint with the U.S. Securities and Exchange Commission, alleging that Amazon concealed its true warehouse injury rate data and used lower 2020 injury rate data in its report on warehouse injury rates released in the spring of 2021 .

Whether it is outdated warehouse injury rate data or tricky investment data released, the New York Police Union and other union alliances that filed the complaint believe that Amazon has woven a "perfect scam" to mislead investors and use deceptive means to falsely create a good image of Amazon to the outside world, causing great harm to investors and the public.

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