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Amazon hit with lawsuit over sales to US retail liquidation company
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Amazon hit with lawsuit over sales to US retail liquidation company
Dec 19, 2024 8:55 AM

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

Read more:

Amazon ( AMZN ) hit with US consumer lawsuit over 'excluded' fast

delivery zones

US antitrust case against Amazon ( AMZN ) to move forward

Amazon ( AMZN ) defeats consumer antitrust lawsuit over fulfillment

centers

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