A new complaint in a shareholder lawsuit against Amazon.com accuses the online retailer of using accounting tricks to make its cash balance look bigger, according to a report. The complaint, filed Oct. 5 in U.S. District Court in Seattle by Milberg Weiss Bershad Hynes & Lerach, is a consolidation of various shareholder suits dating back to March, The Wall Street Journal reported.
The original suit charged Amazon had misled investors by hiding the fact that millions of dollars' worth of promotional agreements with other Internet companies were to be paid to Amazon in stock, not cash, the report said. The consolidated complaint also includes charges that Amazon made its cash reserves look plumper by holding millions of dollars of accounts payable and then threatening to halt business with suppliers if they did not agree to unreasonable delays in payment, the report said. Amazon said the suit has no merit.