Dec 19 (Reuters) - Amazon.com ( AMZN ) is facing a new
lawsuit from a major U.S. retail liquidation firm that claims it
was overcharged for buying up products in bulk from Amazon ( AMZN )
warehouses around the country.
Ohio-based Xcess Ltd sued Amazon ( AMZN ) in federal court in Akron
on Wednesday, alleging it breached a liquidation agreement and
that its business practices violated a Washington state consumer
protection law.
Xcess and other liquidators buy slow-selling or non-selling
products in bulk at a discount from retailers like Amazon ( AMZN ) and
resell them to consumers and other outlets.
Amazon ( AMZN ) knew some of the items it was selling to Xcess had
inflated prices, according to the lawsuit. Xcess cited
smartphone cases that Amazon ( AMZN ) sellers priced at hundreds of
dollars, and a pair of basic solar eclipse glasses for $40.
Some product sellers knew they could jack up their retail
prices because Amazon ( AMZN ) would pass along those overcharges to
companies like Xcess, the lawsuit said. Amazon ( AMZN ) also allegedly
invoiced Xcess for items that could not be resold, including
goods that were past expiration or subject to a recall.
Amazon ( AMZN ) and Xcess did not immediately respond to requests for
comment. The companies have clashed in recent months over
Amazon's ( AMZN ) claims that Xcess defaulted on obligations under its
liquidation agreement, the complaint said.
Xcess said it first agreed to a liquidation services deal
with Amazon ( AMZN ) in 2016. By 2022, the contract covered 60 Amazon ( AMZN )
product fulfillment centers around the country, according to the
lawsuit.
Amazon ( AMZN ) "periodically" told Xcess that invoices contained
inflated prices, and said Xcess could identify excessive charges
and receive credit. But overcharges often were buried in
invoices with millions of lines, and so identifying them was
laborious, Xcess said.
The lawsuit also said Amazon ( AMZN ) illegally interfered with
Xcess' business plans with another company, Liquidity Services ( LQDT )
, that won a large contract with Amazon ( AMZN ) in June.
The lawsuit seeks unspecified monetary damages and a
declaration that Xcess does not owe anything to Amazon ( AMZN ).
The case is Xcess Limited v. Amazon.com Services LLC, U.S.
District Court, Northern District of Ohio, No. 5:24-cv-02205-JRA
For plaintiff: Michael Gladman and Matthew Corcoran of Jones
Day
For defendant: No appearance yet
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