Amazon shareholders have filed a lawsuit against the company, claiming that it refused to consider SpaceX, owned by Elon Musk, for a satellite contract due to a longstanding feud between Musk and Amazon founder Jeff Bezos. The lawsuit was filed by Cleveland Bakers and Teamsters Pension Fund (CB&T) on behalf of the shareholders, accusing Amazon’s board of breaching their fiduciary responsibilities by awarding contracts worth $2.7 billion to Bezos-owned Blue Origin, and not considering SpaceX as an alternative launch provider. The shareholders argue that SpaceX has a better track record and that a deal with Musk’s company would have been more cost-effective for Amazon. Two other companies, United Launch Alliance and Arianespace, were also awarded contracts for the Project Kuiper deal. In total, Amazon expects to pay these three firms around $7.4 billion for launch services through 2028. The lawsuit claims that Amazon excluded SpaceX from the procurement process because of Bezos’ personal rivalry with Musk. Amazon’s Project Kuiper aims to create a network of over 3,000 satellites to provide broadband internet to remote areas, which puts it in direct competition with Musk’s Starlink, which has already launched over 4,500 satellites into space. Both Musk and Bezos, who are among the world’s wealthiest individuals, have engaged in public spats through social media. The lawsuit even includes a screenshot of a tweet by Musk, where he taunts Bezos over SpaceX winning a NASA contract worth $2.9 billion. Bezos has criticized NASA’s decision and sued the federal government, claiming favoritism toward SpaceX. The judge rejected Bezos’ claims, but NASA stated that it would seek bids from two companies for its other lunar lander contracts. The shareholders argue that Amazon would have saved money if it had considered SpaceX for the contract bid. Musk responded to Bezos’ company’s criticism of SpaceX’s Starship by mocking Blue Origin’s capabilities on social media. The lawsuit seeks unspecified damages and legal fees, and Amazon has dismissed the claims as without merit. The Post has reached out to SpaceX and Blue Origin for comment.
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