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Shareholder group sues Amazon

Amazon.com Inc. has been hit with another shareholder class-action lawsuit regarding its recent financial statements, the latest challenge to the company's accounting practices.
Written by ZDNET Editors, Contributor
Amazon.com Inc. has been hit with another shareholder class-action lawsuit regarding its recent financial statements, the latest challenge to the company's accounting practices.

The lawsuit, filed Tuesday in U.S. District Court in Washington, alleges that Amazon executives gave misleading statements that "inflated" the company's stock price. Attorneys from the law offices of Weiss & Yourman and Keller Rohrback said the lawsuit covers shareholders who obtained Amazon stock between Feb. 2, 2000, and March 9, 2001.

On March 9, lawyers from New York-based Wechsler Harwood Halebian & Feffer filed a similar lawsuit in U.S. District Court in Washington alleging that Amazon had overstated assets, revenue, income and earnings per share.

"Based on the allegations we have reviewed so far, it is clear that these lawsuits are without merit," Amazon said in a statement Wednesday. "We expect that they will be dismissed by the court." -- Greg Sandoval, Special to ZDNet News

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