September 22, 2023

Amazon founder Jeff Bezos is in authorized hassle over his area firm Blue Origin. And it appears this may occasionally even be Blue Origin vs SpaceX. An Amazon shareholder has reportedly filed a lawsuit towards Bezos and the Amazon board. In response to a report in information company Reuters, the lawsuit alleges that the corporate’s administrators failed to totally vet a call to award launch contracts for the corporate’s Venture Kuiper satellite tv for pc undertaking to Blue Origin. The lawsuit has been filed by Cleveland Bakers and Teamsters Pension Fund.

The ‘Elon Musk connection’
The lawsuit claims that the Amazon board awarded contracts price billions of {dollars} to Blue Origin and didn’t take into account rival Elon Musk-owned SpaceX as a substitute launch supplier regardless of its observe document. The filings additional mentioned that the launch contracts have been the second-largest capital expenditure in Amazon’s historical past on the time. Amazon’s largest acquisition up to now is the corporate’s $13.7 billion deal to purchase Entire Meals in 2017.

Amazon is claimed to have already paid about $1.7 billion to the three launch suppliers within the undertaking, together with $585 million to Blue Origin immediately, the lawsuit states, including that the corporate has not but launched a prototype of its Kuiper satellite tv for pc into orbit.

For these unaware, Amazon’s Venture Kuiper is a deliberate community of over 3,000 satellites designed to beam broadband web to distant areas. It’s a rival to Musk’s Starlink that too supplies satellite tv for pc web connectivity. Venture Kuiper will start mass-producing the satellites later this yr and beta testing with business clients in 2024, Amazon mentioned earlier this yr.

The 2024 deployment goal would preserve Amazon on observe to satisfy a regulatory mandate by the FCC to launch half its whole Kuiper community of three,236 satellites by 2026.

Amazon on lawsuit
Requested in regards to the lawsuit, an Amazon spokesperson mentioned in an electronic mail: “The claims on this lawsuit are fully with out benefit, and we sit up for exhibiting that by the authorized course of.”

The pension fund seeks unspecified damages and authorized charges, in keeping with a lawsuit filed on August 28 within the Delaware Court docket of Chancery.


High Remark

finish of article