In which a federal court finds a securities fraud plaintiff's allegation of scienter against Amazon to be implausible bc the court can't imagine why Amazon would want to conceal anticompetitive conduct
Joyce v. Amazon.Com, Inc., No. 2:22-cv-00617 (W.D. Wash. Dec. 04, 2023),
@annmlipton They also think that companies chasing short term profits with no thought about the long term is "implausible"? What world are they living in?
@LouisIngenthron that's standard doctrine, in the securities fraud world.
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@annmlipton That seems... backwards. In my experience, an IPO signifies the point in time in which a company stops caring about the long-term to instead seek only immediate short-term wins for their new shareholders who can sell at any time.
@LouisIngenthron It's not an issue for IPOs because no scienter is required for false registration statements. Outside of IPOs, you can't plead - this is just a complaint, plead - scienter by appealing to short-term incentives.