12:42 PM EDT, 04/25/2024 (MT Newswires) -- (Updates with additional information.)

Amazon.com ( AMZN ) must provide information tied to executives' travel to the US Department of Labor in order to dissuade employees from unionizing, a federal judge ruled, Bloomberg reported Thursday.

The Labor Department petitioned the court in December to enforce a subpoena, asserting that information was needed for an investigation into whether Amazon ( AMZN ) complied with reporting obligations under the Labor-Management Reporting and Disclosure Act.

The law mandates specific companies to file annual LM-10 reports, disclosing expenses related to activities influencing employees regarding unionization, according to the report.

District Judge Marsha Pechman of the US District Court for the Western District of Washington approved the request from the Office of Labor Management Standards, deeming the subpoena "reasonable and properly issued for no improper purpose," the report said.

"If these individuals acted outside of their normal capacity, then the reimbursement likely needs to be disclosed on the LM-10 form," Bloomberg cited Pechman.

The agency initiated an investigation into Amazon's ( AMZN ) disclosures in May 2022, followed by a subpoena in August 2023 for the company's financial records concerning its response to a union campaign at its Staten Island, New York, warehouse, according to the report.

Amazon ( AMZN ) and Labor Department did not immediately respond to MT Newswires' requests for comment.

Amazon ( AMZN ) stock was down 2.6% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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