Amazon.com, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Amazon.com, Inc. (AMZN)

If you purchased or otherwise acquired Amazon.com securities during the relevant period, and still hold some shares today, you may be eligible to seek corporate reforms, the return of funds back to the Company, and a court-approved incentive award at no cost to you.

About Amazon.com

Amazon is a multinational technology company incorporated in Delaware, with principal executive offices in Seattle, Washington. The company operates through three main segments: North America, International, and Amazon Web Services (AWS).

A core part of Amazon’s business is its Prime subscription service, which is integrated with its online retail platform and digital media offerings.

What's being investigated

The investigation centers on allegations that, from 2016 to June 2023, Amazon enrolled millions of consumers in its Prime subscription service without their consent and made it unreasonably difficult for consumers to cancel their subscriptions. According to the Federal Trade Commission (FTC), the company’s “Iliad Flow” design for Prime cancellation remained largely unchanged in the U.S. until regulatory pressure prompted modifications in April 2023.

The FTC further alleges that Amazon’s leadership knowingly delayed or rejected changes that would have made cancellation easier, citing concerns about business performance.

On September 25, 2025, the FTC announced a settlement requiring Amazon to pay a $1 billion civil penalty and provide $1.5 billion in refunds to consumers harmed by these alleged practices. The settlement also mandates that Amazon cease certain enrollment and cancellation practices and implement new compliance and monitoring measures.

Key timeline

• 2016: Amazon launches the “Iliad Flow” for Prime cancellation. Investors allege this design made it difficult for users to cancel Prime subscriptions, raising compliance concerns.
• April 2023: Amazon reportedly implements substantial changes to the Prime cancellation process in the U.S., after years of regulatory scrutiny. Investors contend this timing is significant as it followed increased FTC pressure.
• June 21, 2023: FTC files a complaint alleging deceptive Prime enrollment and cancellation practices. Investors say this marks the formal start of regulatory action.
• May 28, 2024: Court denies Amazon’s motions to dismiss the FTC’s claims, allowing the case to proceed. Investors argue this increases potential liability exposure.
• September 25, 2025: FTC settlement is announced: $1 billion civil penalty, $1.5 billion in consumer refunds, and mandated compliance reforms. Investors allege this outcome signals material financial and governance impacts.

Why investors may be concerned

Investors and stockholders allege that Amazon may have made misleading statements or omissions regarding the risks and compliance systems associated with its Prime subscription practices. The FTC complaint contends that Amazon’s board and key officers may have failed to implement or monitor adequate internal controls over mission-critical consumer protection risks, particularly regarding negative-option marketing and cancellation processes.

Some stockholders argue that the board’s Audit Committee, which oversees legal and regulatory matters, may have ignored “red flags” related to Prime’s enrollment and cancellation practices. There are also allegations that certain officers and Prime executives knowingly permitted or encouraged practices that regulators later deemed problematic, potentially implicating duties of loyalty and oversight.

Your Rights and Next Steps

This is an ongoing investigation into potential breaches of fiduciary duty and securities law at Amazon.com. If you owned Amazon stock during the relevant period, you may have the right to participate in a shareholder action.

Shareholders in derivative actions may seek to recover damages for the company, prompt governance reforms, or pursue other remedies if wrongdoing is proven. To preserve your rights, it is important to document your ownership and monitor the progress of the investigation.

If a shareholder action moves forward, the case will likely proceed in the Delaware Court of Chancery under Amazon’s exclusive-forum bylaw. Any federal securities claims, such as those under Section 14(a) of the Exchange Act, would be brought in federal court.

How Shareholders Can Take Action Today

Securities investigations are time-sensitive. If purchased or acquired Amazon.com securities between 2016 and April 2023, and still hold some shares today, you may be able to seek corporate reforms, the return of funds back to the Company, and a court-approved incentive award at absolutely no cost to you.

To participate or learn more, complete the form below to join the investigation.