Investing
Amazon seeks dismissal of lawsuit over Kuiper satellite launch contracts
© Reuters. FILE PHOTO: A United Launch Alliance Atlas V rocket lifts off carrying Amazon’s two prototype relay stations for a space-based internet service it calls Project Kuiper, from the Cape Canaveral Space Force Station in Cape Canaveral, Florida, U.S., October
2/2
By Joey Roulette
(Reuters) -Amazon.com asked a Delaware court to dismiss a lawsuit brought by shareholders over the company’s Kuiper satellite launch contracts, arguing in a filing that the plaintiffs failed to prove that directors acted in bad faith in approving one of the e-commerce giant’s biggest capital expenditures.
The Cleveland Bakers and Teamsters Pension Fund, a multi-employer fund, in August sued Amazon (NASDAQ:) in the Delaware Court of Chancery alleging Amazon’s board awarded contracts to Jeff Bezos’ space company Blue Origin without proper diligence and without considering rocket rival Elon Musk-owned SpaceX’s rockets.
In a redacted motion to dismiss filed with the court on Monday, Amazon argued that plaintiffs did not adequately show its directors acted in bad faith.
“The complaint does not come close to alleging the facts necessary to support that extraordinary theory,” Amazon said, countering that its directors “undertook a diligent and informed review of the agreements.”
Amazon aims to launch over 3,000 satellites into low-Earth orbit to provide global broadband internet coverage and compete directly with Elon Musk’s SpaceX, whose Starlink network is farther ahead in the market for providing internet from space.
Bezos is Amazon’s founder and was CEO until 2021, but remains as the company’s executive chairman. He is founder and primary owner of Blue Origin, the launch company whose New Glenn rocket Amazon contracted with to use for some of its Kuiper satellite launches.
Amazon refuted allegations of conflicts of interest with Bezos, saying he was recused from some meetings that were convened to consider launch agreements with his space company Blue Origin.
Amazon deployed its first two test satellites for the Kuiper network in October.
To deploy the remaining thousands of satellites, the company last year announced a bulk launch deal for 83 launches – the largest commercial rocket procurement ever – from various rocket companies, including Blue Origin, Europe’s Arianespace and United Launch Alliance, a joint venture of Boeing (NYSE:) and Lockheed Martin (NYSE:).
Amazon announced earlier this month it had bought three launches from SpaceX to help deploy the Kuiper satellites.
The plaintiffs have until February 2024 to counter Amazon’s motion to dismiss.
Read the full article here
-
Side Hustles7 days ago
How to Develop Empowered Leaders Within Your Own Team
-
Passive Income6 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles6 days ago
How Your Body Language Can Help Win a Disagreement
-
Side Hustles5 days ago
How to Be Unapologetically You and Why It Matters
-
Investing6 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale
-
Side Hustles6 days ago
OpenAI Raises Record $6.6 Billion, Adds 50 Million New Users
-
Side Hustles7 days ago
Why the Best Time to Sell Your Business Is When You Least Expect It
-
Investing4 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane