Cleveland Bakers and Teamsters Pension fund have filed a lawsuit this week alleging that Amazon’s board awarded billion-dollar contracts to Blue Origin, another Bezos-owned company, without adequately vetting the decision or considering rival SpaceX.
Amazon’s Project Kuiper satellite project aims to generate a network of 3,236 satellites to provide broadband to remote areas. Project Kuiper plans to begin satellite production later this year, with beta tests forecasted for 2024.
An FCC mandate requires Amazon to launch half its Kuiper fleet by 2026. The company has yet to launch a prototype.
The suit, filed with Delaware’s Court of Chancery, alleges the committees spent less than an hour reviewing potential contracts.
Earlier this month, Amazon investors moved to sue Jeff Bezos, and other members of Amazon’s board, over multiple antitrust violations and anticompetitive data violations.
The suit alleges Bezos and other board members’ antitrust practices left the company vulnerable to lawmakers and regulatory agencies scrutinising the business which, in turn, lowered stock prices.
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The lawsuit followed a 2021 FTC investigation into the sign-up and cancellation protocol for Prime services.