12:30 PM EDT, 03/18/2025 (MT Newswires) -- Amazon.com ( AMZN ) got a relief Monday when a federal judge in Seattle dismissed a class action lawsuit saying the company did not defraud shareholders on the treatment of third-party sellers and expansion plans.

The lawsuit, filed by shareholders, claimed that Amazon ( AMZN ) hid an algorithm that made its private-label products cheaper than those of third-party sellers, according to the filing.

They also argued that Amazon's ( AMZN ) overexpansion of its infrastructure led to a $2 billion cost, causing its stock price to drop in April 2022, as per the court document.

Judge John H. Chun of the US District Court for the Western District of Washington ruled that facts presented do not prove Amazon ( AMZN ) executives, including Jeff Bezos and Andy Jassy, knowingly concealed these issues and added that the case did not prove that Amazon ( AMZN ) intentionally defrauded shareholders or inflated stock prices. Amazon's ( AMZN ) focus was on increasing profits, not fraudulent intent, the judge wrote.

Amazon ( AMZN ) shares were down nearly 2% in recent trading.

Price: 192.51, Change: -3.23, Percent Change: -1.65