Lawsuit against Amazon for favoring Blue Origin over SpaceX to launch Kuiper satellites gets new hearing
The lawsuit originally filed in 2023 against Amazon because it favored other less reliable rockets, including Blue Origin’s forever-delayed New Glenn, instead of using SpaceX to launch its Kuiper constellation of satellites, got a new hearing yesterday after the suit was dismissed in February.
The suit is now being pursued a pension fund that apparently invested in the Kuiper constellation, and claims Jeff Bezos used his influence to convince Amazon to avoid using SpaceX when it signed launch contracts with ULA, Arianespace, and Blue Origin in 2022, even though none of those rockets were even operational at the time. Even now they appear unable to meet Amazon’s launch requirements.
Amazon has until 2026 to send up the first 1,600 satellites and three more years to launch the next batch. That broader backdrop barely came up during the appeal proceedings, which zoomed in on allegations that the board made no effort to oversee self-dealing by Bezos as he directed billions from Amazon to his own rocket company, Blue Origin, despite SpaceX’s superior capabilities.
Vivek Upadhya, counsel for the pension fund, stressed the “billions of dollars flowing directly from Amazon to a company owned and controlled by Amazon’s CEO and chairman.” The sheer scale of the conflict of interest made the Blue Origin contract “a truly exceptional transaction” requiring attentive board supervision, regardless of the actual role Bezos played in negotiations, according to Upadhya. “Delaware law doesn’t require that directors harbor some innate suspicion” before taking steps to manage conflicts, but the board “failed to lift a finger,” he said.
Following the filing of the 2023 lawsuit, Amazon signed SpaceX to a three-launch contract, which SpaceX has now completed. Meanwhile, only ULA has managed any of the other launches, three also. As for Arianespace and Blue Origin, it is not clear when either will begin doing any Kuiper launches.
It does appear Amazon’s board played favorites here, and did so in a way that was harmful to the company’s bottom line. Whether this can be proved to the satisfaction of the court however is very uncertain.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
The lawsuit originally filed in 2023 against Amazon because it favored other less reliable rockets, including Blue Origin’s forever-delayed New Glenn, instead of using SpaceX to launch its Kuiper constellation of satellites, got a new hearing yesterday after the suit was dismissed in February.
The suit is now being pursued a pension fund that apparently invested in the Kuiper constellation, and claims Jeff Bezos used his influence to convince Amazon to avoid using SpaceX when it signed launch contracts with ULA, Arianespace, and Blue Origin in 2022, even though none of those rockets were even operational at the time. Even now they appear unable to meet Amazon’s launch requirements.
Amazon has until 2026 to send up the first 1,600 satellites and three more years to launch the next batch. That broader backdrop barely came up during the appeal proceedings, which zoomed in on allegations that the board made no effort to oversee self-dealing by Bezos as he directed billions from Amazon to his own rocket company, Blue Origin, despite SpaceX’s superior capabilities.
Vivek Upadhya, counsel for the pension fund, stressed the “billions of dollars flowing directly from Amazon to a company owned and controlled by Amazon’s CEO and chairman.” The sheer scale of the conflict of interest made the Blue Origin contract “a truly exceptional transaction” requiring attentive board supervision, regardless of the actual role Bezos played in negotiations, according to Upadhya. “Delaware law doesn’t require that directors harbor some innate suspicion” before taking steps to manage conflicts, but the board “failed to lift a finger,” he said.
Following the filing of the 2023 lawsuit, Amazon signed SpaceX to a three-launch contract, which SpaceX has now completed. Meanwhile, only ULA has managed any of the other launches, three also. As for Arianespace and Blue Origin, it is not clear when either will begin doing any Kuiper launches.
It does appear Amazon’s board played favorites here, and did so in a way that was harmful to the company’s bottom line. Whether this can be proved to the satisfaction of the court however is very uncertain.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News