Amazon.com, Inc.

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.