Stupid lawsuit. They are literally trying to build a competitor to SpaceX and Starlink and the lawsuit is like “Well you suck at doing so, so we’re suing you because it made our stocks go down.” Like what? You took a gamble on the stocks and now you are suing the company because your gamble didn’t pay off? Let me walk into a casino, lose 200 dollars, and then sue them because they didn’t make the right choices when dealing me cards.
Accept blue origin is an independent company owned by bozo not amazon. So whe amazon fails to consider other options. They are failing to protect the amazon company.
Bozo is basically using one company to support another, at the cost of the 1st company. When the 2 companies are independent. That definatly is a valid reason for investors to question his responsibility to them.
You example would be more like complaining because the casino has magnets on the rulelet wheel.
Ah, I forgot that Blue Origin wasn’t connected to Amazon but Kuiper is. This is exactly why SpaceX owns Starlink. Bezo should have followed the same corporate structure and it would have been fine.
Frankly, I don’t care terribly much, let the millionaires sue the billionaires. It’s all still rather silly. Especially, since you see another group of companies doing the same exact thing and you wonder why paperwork is the only reason they get away with it. Anyone looking at Kuiper or even Amazon and not also seeing Blue Origin is lying to themselves. Elon does this sort of cross-corporate bullshit too, SpaceX launched a Telsa into space just to cross-promote the brands. We should honestly crack down on how big corporations have got and how much they get away with cross-promoting for personal gain.
Elon has plenty of lawsuits against him.
But unfortunately you are wrong. 1st its not millionairs. It is a pension fund. These have everyday working bods as their members trying to earn a regular return.
So when the leader of a company make a choice that is not good corperate governance. Then the pension fund investing is required to act in its members interest.
You also made an error when you compare share holding to casino. Casinos are by their very nature gambling stovk port folios are an investment. Based on the information provided by the company.
So yes when a company behave in a way that goes against the investment claims the board made. They are prown to being sued.
Because it is those claims that investors base their risk on. Rather then a casino where your risk is based on knowing full well the house always wins.
Elon was also moving engineers over to Twitter when he bought it, which could have caused lawsuits from Tesla shareholders. Amazon and Tesla being public opens them up to more scrutiny about the billionaire BS.
SpaceX launching Elon Musks privately owned Tesla Roadster is hardly cross company.
There’s a side effect of good marketing for both companies and the “Elon Musk”-brand, but he’s doing a good job of tarnishing that brand on his own.
Anti-trust seems like a good thing to bring back though.
In purchasing Falcon 9 rockets, Amazon would have been, in effect, funding the further development and improvement of the Starlink service.
The core issue is likely to be whether Amazon directors gave due consideration to this, and other related matters. The meetings to approve these launch contracts, according to the lawsuit, were brief and perfunctory. Perhaps the real question is whether Amazon’s directors should have spent more time discussing whether launching its Kuiper satellites on time, and likely for about half the cost of its other options, outweighed the downside of supporting a competitor’s business.
From the article.
If the casino changes their rules after you put your money down you sure as hell can sue them.
You could try but they are on tribal lands in my part of the world. So it doesn’t make sense to try to.
I had completely forgotten that Amazon owns Whole Foods and MGM.
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Shareholders of a pension fund that includes Amazon stock have sued the company, its founder Jeff Bezos, and its board of directors for “breaching their fiduciary duty” as part of a contract to acquire launch services for the Project Kuiper megaconstellation.
The lawsuit, filed on Thursday and first reported by the Delaware Business Court Insider, alleges that in purchasing launches for Kuiper, Amazon failed to consider SpaceX and its Falcon 9 rocket.
The primary issue raised by the lawsuit is that Amazon’s board of directors did not consider SpaceX as a potential launch contractor and instead chose companies that would enrich Bezos.
“The near-constant drumbeat of delays and bad news from Blue Origin and its business partner and customer, ULA, now threatens to jeopardize the entire Kuiper program, underscoring the harm the Board’s utter failure to comply with its fiduciary duties has caused to Amazon,” the lawsuit states.
The multinational technology company announced in 2019 that it would develop a large broadband satellite Internet constellation in 2019 called Project Kuiper.
Under the license it received from the Federal Communications Commission, Amazon is required to launch half of its planned 3,236 satellites into low-Earth orbit by July 30, 2026.
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