March 17 (Reuters) - A U.S. judge dismissed a lawsuit

accusing Amazon.com ( AMZN ) of defrauding shareholders about

its treatment of third-party sellers and plans to expand

capacity, culminating in a Federal Trade Commission antitrust

case against the online retail giant.

Monday's dismissal by U.S. District Judge John Chun in

Seattle was with prejudice, meaning the proposed class action

cannot be brought again.

Lawyers for the shareholders did not immediately respond to

requests for comment.

Shareholders accused Amazon ( AMZN ) of concealing an algorithm that

ensured its private-label products would cost less than outside

merchandise, raising prices for consumers generally.

They also said Amazon ( AMZN ) concealed the overexpansion of its

infrastructure and fulfillment network, causing its stock price

to tumble in April 2022 when it incurred $2 billion of costs for

excess capacity and posted its first quarterly loss since 2015.

But the judge found no "compelling and particularized facts"

to suggest executives knew and covered up Amazon's ( AMZN ) alleged

favoring its own products over those of outside sellers, or

believed its expansion was too aggressive.

Chun also found insufficient allegations that Amazon ( AMZN )

officials including former Chief Executive Jeff Bezos and his

successor Andy Jassy intended to defraud them by "making Amazon ( AMZN )

seem as successful as possible," in order to boost their pay and

sell stock at inflated prices.

"The more plausible inference" from the complaint, Chun

wrote, "is that Amazon ( AMZN ) and the individual defendants employed

sharp business practices and were single-mindedly focused on

increasing corporate profits."

The FTC sued Amazon ( AMZN ) in September 2023, accusing it of using

monopoly power to keep other sellers from lowering prices,

causing consumers to pay more and "degrading" the shopping

experience.

Eighteen U.S. states and Puerto Rico have joined the FTC

lawsuit. A nonjury trial before Chun is scheduled for October

2026, court records show.

The shareholder lawsuit covered owners of Amazon ( AMZN ) shares from

February 1, 2019, to April 28, 2022.

The case is Joyce v Amazon.com Inc ( AMZN ) et al, U.S. District

Court, Western District of Washington, No. 22-00617.