Amazon seeks dismissal of lawsuit over Kuiper satellite launch contracts

FILE PHOTO: A United Launch Alliance Atlas V rocket lifts off carrying Amazon's two prototype relay stations for a space-based internet service it calls Project Kuiper, from the Cape Canaveral Space Force Station in Cape Canaveral, Florida, U.S., October 6, 2023. The launch is the first to test Amazon's internet satellites in space before deploying some 3,200 more. REUTERS/Joe Skipper/File Photo

(Reuters) -Amazon.com asked a Delaware court to dismiss a lawsuit brought by shareholders over the company's Kuiper satellite launch contracts, arguing in a filing that the plaintiffs failed to prove that directors acted in bad faith in approving one of the e-commerce giant's biggest capital expenditures.

The Cleveland Bakers and Teamsters Pension Fund, a multi-employer fund, in August sued Amazon in the Delaware Court of Chancery alleging Amazon's board awarded contracts to Jeff Bezos' space company Blue Origin without proper diligence and without considering rocket rival Elon Musk-owned SpaceX's rockets.