Why Amazon Shareholders Have Filed A Lawsuit Against Jeff Bezos For His Rivalry Against Elon Musk

Besides his high-profile rivalry with Meta CEO Mark Zuckerberg, the world¡¯s richest person, Elon Musk, is also known for his rivalry with another billionaire.

Amazon¡¯s former CEO and founder, Jeff Bezos, While Musk is often on the receiving end of many lawsuits, be they related to Twitter (now X), Tesla, or even SpaceX, it seems that the tables have turned this time.

Amazon Shareholders File Lawsuit Against Jeff Bezos

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This time, some Amazon shareholders are claiming that Jeff Bezos¡¯ rivalry with Musk was a factor influencing a deal worth billions of dollars. That is why they have filed a lawsuit against Bezos.

Last year, Amazon announced the biggest rocket deal in the commercial space sector¡¯s history. Amazon was offering contracts for Project Kuiper¡ªa chance to launch low-earth orbit satellites that would be used for internet services.

The project, in which Amazon confirmed it would invest $10 billion, signed up three contractors: the United Launch Alliance (ULA), a joint venture of Boeing and Lockheed Martin; the European company Arianespace; and Blue Origin, a private venture founded by Bezos himself, as per a Fortune report.

What Wrong Did Jeff Bezos Do Against Elon Musk?

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However, missing from the line-up is Elon Musk's SpaceX, which has reportedly already launched approximately 5,000 internet satellites since 2019 for its own rival service, Starlink.

But despite being a direct competitor, Amazon shareholder Cleveland Bakers and Teamsters Pension Fund (CB&T) has filed a complaint against Bezos and the board of the online giant for not appropriately vetting SpaceX as a viable option for Project Kuiper.

The filing emphasises the rivalry between Bezos and Musk, even featuring screenshots of posts on X¡ªformerly Twitter¡ªwhere the pair have taunted each other over various space expeditions, as per CNBC.

The filing reportedly adds that Amazon executives¡ªincluding current CEO Andy Jassy¡ª"consciously and intentionally breached their most basic fiduciary responsibilities" by awarding the work to the trio and disregarding SpaceX in the proceedings.

The filing adds that Amazon¡¯s leadership "excluded the most obvious and affordable launch provider, SpaceX, from its procurement process because of Bezos¡¯ personal rivalry with Musk," as per the CNBC report.

¡°Bezos, it must be assumed, could not swallow his pride to seek his bitter rival¡¯s help to launch Amazon¡¯s satellites,¡± the lawsuit reportedly adds.

Also Read: Why Netflix Once Rejected Amazon's $15 Million Offer To Buy The Streaming Giant

Amazon Dismisses The Lawsuit

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Amazon has dismissed the lawsuit. A spokesperson for the company said ¡°The claims in this lawsuit are completely without merit, and we look forward to showing that through the legal process.¡±

As per the report, it is unclear whether SpaceX even submitted a bid for the work, or expressed any interest in helping a rival service launch their own satellites.

The Elon Musk vs. Jeff Bezos Saga

Jeff Bezos is one of Musk¡¯s longest-standing rivals, with the latter even calling for Amazon to be broken up, claiming it is a "monopoly." The two billionaires rivalry in the space race has also been a point of contention.

Maybe it¡¯s a coincidence ??¡á?

¡ª Elon Musk (@elonmusk) December 18, 2022

The world's richest person also previously said Bezos had ¡°retired in order to pursue a full-time job filing lawsuits against SpaceX¡± and then later told Bezos you ¡°sue your way to the moon.¡±

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