AMZN Stock Slides After Proposed Consumer Class Action Suit Over Trump Tariff Charges

• Reuters reported that the suit alleged that Amazon has yet to apply for a tariff refund from the government, even though it is eligible.
• "The problem is ​that the funds Amazon is using to stay in the President's good graces do ​not belong to Amazon,” the lawsuit says.
• The U.S. Supreme Court in February invalidated Trump’s tariffs.

Amazon.com, Inc. stock was down nearly 1% in overnight trading ahead of Monday, after it was hit by a proposed class action lawsuit by the e-commerce site’s consumers.

The proposed suit, filed in federal court in Seattle, seeks a refund of costs passed on to consumers in the form of higher prices as a result of tariffs the U.S. Supreme Court later concluded had been unlawfully imposed by President Donald Trump, Reuters reported.

In a 6-3 ruling in February, the U.S. Supreme Court found that Trump exceeded his authority by invoking the International Emergency Economic Powers Act to implement his broad tariff measures.

Consumers Seek Tariff Refunds From Companies

According to the Reuters report, thousands of companies have begun seeking billions of dollars in refunds from the government following the ruling. But Amazon has not, ​which the lawsuit alleged was "not because it lacks a legal basis to do so, but because it seeks to curry favor with Trump by allowing the federal government to retain the funds."

"The problem is ​that the funds Amazon is using to stay in the President's good graces do ​not belong to Amazon,” the lawsuit says. "These funds were wrongfully taken from consumers to cover IEEPA Tariffs ‌that ⁠have since been invalidated."

The lawsuit alleges unjust enrichment and violations of Washington state’s consumer protection laws. Similar cases have been filed earlier against Costco, Nike, and FedEx.

Markets Down On Iran War Updates

U.S. stock futures were down Monday morning on fresh signs of escalating tensions with Iran. On Sunday, President Donald Trump said Iran had to “get moving” or there “won’t be anything left,” even as both countries continue negotiations to end the war.

AMZN Retail View, Stock Move

On Stocktwits, the retail sentiment for AMZN remained ‘bearish,’ unchanged for two weeks. Amazon shares are down nearly 6% since hitting an all-time high of $273.55 on May 5. They are up 14.4% year-to-date.

As investors kick off trading, the biggest news markers in the new week are Nvidia’s quarterly report on Wednesday, and earnings from major retailers Home Depot, Target, Lowe’s Companies, and Walmart throughout the week.

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