ISP.PAGE August 29, 2023 by Simon Smith
A recent lawsuit filed against Amazon.com Inc.’s board and CEO Jeff Bezos alleges that the board failed to exercise proper oversight in the planning and execution of the company’s Project Kuiper. The lawsuit, which was made public on Monday, claims that the choice to rely on Bezos’ own aerospace company, Blue Origin, for the satellite project was motivated by Bezos’ rivalry with Elon Musk, resulting in significant delays.
Project Kuiper, Amazon’s second-largest capital expenditure after its acquisition of Whole Foods, aims to create a satellite internet network to provide global coverage. However, the pension fund that filed the lawsuit argues that the board gave little attention to assessing potential conflicts of interest arising from Bezos’ ownership of Blue Origin as it approved the project.
The lawsuit alleges that the board devoted minimal time to thoroughly reviewing the plan, having “devoted barely an hour before blindly signing off” on it. This lack of oversight, according to the pension fund, has caused years of delays and has resulted in significant financial losses for shareholders.
More:
https://isp.page/news/bezos-musk-rivalry-is-behind-amazon-satellite-delays-suit-says/
