Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Amazon.com, Inc. (“Amazon” or the “Company”) (NASDAQ: AMZN) common stock between July 30, 2021 and April 28, 2022, inclusive (the “Class Period”). Amazon investors have until September 6, 2022 to file a lead plaintiff motion.
Investors suffering losses on their Amazon investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On April 28, 2022, Amazon reported a $3.8 billion net quarterly loss. The Company disclosed $6 billion of “incremental costs,” including $2 billion due to “overcapacity” in its “fulfillment and transportation network.” Amazon also disclosed that it expected the impacts of this to “persist for the next several quarters.”
On this news, Amazon’s stock fell $406.30, or 14%, to close at $2,485.63 per share on April 29, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) rather than necessary to meet short-term and long-term customer demand, Amazon’s rapid expansion resulted in substantial overcapacity that drove massive losses and would substantially deplete the Company’s earnings moving forward; (2) Amazon’s capacity for growth far outpaced demand and, in response, Defendants made a series of intensifying cutbacks to warehouse and fulfillment capacity; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Amazon common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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