Lawsuit alleges no due diligence in Amazon’s Project Kuiper launch contracts to Blue Origin, ULA,A lawsuit has been filed alleging that Amazon failed to carry out proper due diligence in awarding launch contracts for its satellite internet project, Project Kuiper, to Blue Origin and United Launch Alliance (ULA). The suit claims that Amazon did not adequately evaluate the bids from other companies, ultimately resulting in a lack of fair competition.
The lawsuit argues that Blue Origin and ULA were awarded the launch contracts based on personal relationships and financial incentives, rather than a thorough review of capabilities and competitiveness. It suggests that Amazon did not fulfill its fiduciary duty by awarding contracts worth billions of dollars without proper consideration of other potential launch providers.
Project Kuiper aims to provide global broadband coverage through a network of satellites in low Earth orbit. The lawsuit contends that Amazon’s alleged lack of due diligence undermines fair competition and may result in a less efficient and costly project in the long run.
Both Amazon and ULA have declined to comment on the pending lawsuit, while Blue Origin has not yet responded. It remains to be seen how the legal proceedings will unfold and what impact they may have on the contracts and the future of Project Kuiper.
