Overview of the Amazon BIPA Compliance Derivative Lawsuit:
- Who: Stephen G. Nelson, derivative on behalf of Amazon, has filed a class action lawsuit against the company and its senior executives.
- Why: Nelson claims Amazon’s top executives misled investors about its compliance with Illinois’ biometric information privacy law and the risks of litigation that come with it.
- Or: The class action lawsuit was filed in federal court in Washington.
Amazon’s top executives misled investors about the company’s compliance with the Illinois Biometric Information Privacy Act (BIPA) and the risks of subsequent litigation, a new derivative lawsuit alleges.
Plaintiff Stephen G. Nelson, on behalf of Amazon, says the company is facing 14 proposed class action lawsuits due to alleged BIPA violations.
“These violations exposed Amazon to substantial harm,” the Amazon class action lawsuit states.
Nelson names Amazon founder and executive chairman Jeff Bezos, CEO Andrew R. Jassy and senior vice president and chief financial officer Brian Olsavsky as defendants in the class action lawsuit, among other board members and executives.
“Because of Amazon’s Board of Directors’ knowledge of illegal conduct and involvement in wrongdoing, its egregious inability to act (including to stop or correct violations of law), the lack of independence of its members and the substantial likelihood of liability that its members face, any request to the Board of Directors to rectify these wrongdoings would be an unnecessary, unnecessary, and futile act,” the spin-off complaint from Amazon states.
To be in compliance with BIPA, a company must obtain written consent before it can collect and store biometric identifiers such as fingerprints or facial scans, according to the class action.
Nelson says Amazon must also make other disclosures, such as how it plans to eventually get rid of all the biometric IDs it collects.
Amazon ignored ‘red flags’ that indicated privacy breach, class action claims
Amazon ignored ‘red flags’ that indicated privacy violations, directly participated in ‘inappropriate strategies’ and failed to maintain an ‘adequate monitoring system’, among other things, the class action lawsuit alleges. ‘Amazon.
Nelson argues that Amazon has also failed to correct “incorrect statements” made in documents filed with the U.S. Securities and Exchange Commission regarding the company’s “operations, internal controls, legal process, and risks.” business (including financial, operational, legal, regulatory and enforcement risks), and privacy.
Amazon’s senior executives, meanwhile, received “lavish compensation, despite their knowledge of and responsibility for the company’s willful misconduct,” the class action alleges.
Nelson claims that Amazon’s officers and directors breached their fiduciary duties and that the company and its officers are guilty of unjust enrichment and waste of corporate assets.
The plaintiff seeks a jury trial and seeks an injunction as well as unspecified damages.
A class action lawsuit against Amazon was dismissed by a federal judge in New York earlier this month after determining that the company had not violated the law by rescind job offers to applicants who test positive for cannabis.
Do you think Amazon executives misled investors about its BIPA compliance? Let us know in the comments!
Plaintiff is represented by Gregory F. Wesner and John C. Herman of Herman Jones LLP.
the Amazon BIPA Compliance Lawsuit is Nelson v. Bezos, et al.Case No. 2:22-cv-00559, in the U.S. District Court for the Western District of Washington.
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