{"id":17266,"date":"2023-09-01T20:50:52","date_gmt":"2023-09-01T12:50:52","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/pension-funds-lawsuit-questions-amazons-decisions-on-kuiper-satellite-launch-deal\/"},"modified":"2023-09-01T20:50:52","modified_gmt":"2023-09-01T12:50:52","slug":"pension-funds-lawsuit-questions-amazons-decisions-on-kuiper-satellite-launch-deal","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/pension-funds-lawsuit-questions-amazons-decisions-on-kuiper-satellite-launch-deal\/","title":{"rendered":"Pension fund\u2019s lawsuit questions Amazon\u2019s decisions on Kuiper satellite launch deal"},"content":{"rendered":"
\"Atlas
Amazon plans to have satellites sent into orbit by (from left) United Launch Alliance\u2019s Vulcan-Centaur rockets, Blue Origin\u2019s New Glenn rockets and Arianespace\u2019s Ariane rockets. ULA\u2019s Atlas V rockets are also in the mix \u2014 but not SpaceX\u2019s rockets, at least for now. (Amazon Illustration)<\/figcaption><\/figure>\n

An Ohio-based pension fund has filed a lawsuit alleging that Amazon didn\u2019t give due consideration to SpaceX as a potential launch provider for its Project Kuiper broadband internet satellite constellation, which is a rival for SpaceX\u2019s Starlink satellite network.<\/p>\n

The lawsuit, filed by the Cleveland Bakers and Teamsters Pension Fund in the Delaware Court of Chancery, says Amazon\u2019s board of directors acted in bad faith last year when they chose three other providers \u2014 including Blue Origin, the space venture owned by Amazon founder Jeff Bezos \u2014 but left out SpaceX. <\/p>\n

The other two companies were the European Arianespace consortium and United Launch Alliance, which will use Blue Origin\u2019s BE-4 engine on its Vulcan Centaur rocket. The lawsuit says the three agreements add up to Amazon\u2019s second-largest capital expenditure, after its $13.7 billion acquisition of Whole Foods in 2017.<\/p>\n

So far, Amazon has spent nearly $1.7 billion on the launch deal, including $585 million paid out to Blue Origin directly, the lawsuit says. <\/p>\n

In its filing, the CB&T Fund \u2014 which owns shares in Amazon \u2014 says that the company\u2019s directors and officers, including the board of directors\u2019 audit committee, made \u201cno effort to properly discharge their fiduciary duties.\u201d It suggests that Amazon\u2019s decisions were unduly influenced by Bezos\u2019 outside interest in Blue Origin. <\/p>\n

The lawsuit tracks the tiffs that have arisen between Bezos and SpaceX CEO Elon Musk over the years, as well as the setbacks experienced during the development of Blue Origin\u2019s New Glenn rocket and ULA\u2019s Vulcan rocket.<\/p>\n

The pension fund questioned whether the company would be able to make a federally mandated deadline to deploy half of its planned 3,236 satellites by mid-2026. It implied that the prospects would be better if Amazon had struck a deal with SpaceX, which it said \u201chas by far the most proven launch track record in history.\u201d<\/p>\n

\u201cIn the face of SpaceX\u2019s proven reliability and cost advantages, Bezos-led Amazon\u2019s decision to not even consider SpaceX as a launch provider illustrates the glaring conflict of Bezos\u2019 affiliation with both Amazon and Blue Origin presented, and the substantial impact these conflicts had on the board\u2019s ability to protect the best interests of the company and its stockholders in negotiating the contracts,\u201d the pension fund said in its suit.<\/p>\n

The suit seeks unspecified damages, legal costs and \u201cimmediate disgorgement of all profits, benefits and other compensation obtained by defendants as a result of their breaches of fiduciary duties.\u201d<\/p>\n

In an emailed statement, an Amazon spokesperson said that \u201cthe claims in this lawsuit are completely without merit, and we look forward to showing that through the legal process.\u201d<\/p>\n

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