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 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.”
(Reporting by Joey Roulette; Additional reporting by Tom Hals in Wilmington, Delaware; Editing by Leslie Adler and Sandra Maler)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.
Source: The Print
