Shareholder Litigation: Amazon Prevails In Proposed Biometric Privacy Lawsuit
According to a report from Bloomberg Law, Amazon has prevailed in a key procedural matter in a BIPA lawsuit filed by a shareholder. A plaintiff shareholder sought to open up an investigation into the company over possible violations of state biometric lawsuits—specifically the Illinois Biometric Information Privacy Act. The plaintiff alleged damage to their interests and the interests of similarly situated shareholders on the grounds of corporate malfeasance by the company’s leadership. In this blog post, our Miami shareholder dispute lawyer provides an overview of this case.
Background: Amazon Accused of Violations of Illinois Biometric Data Protection Law
In a recent lawsuit, Amazon has been accused of violating Illinois’ Biometric Information Privacy Act (BIPA). The plaintiffs allege that the company unlawfully collected, stored, and used biometric data of its warehouse workers without obtaining informed consent. These practices reportedly included using facial recognition technology and fingerprint scans for timekeeping and security purposes. Notably, other states have similar biometric data protection laws—but the Illinois law is currently one of the strongest and most comprehensive in the entire country.
A Shareholder Filled a Lawsuit Over the Allegations—Alleged Corporate Malfeasance
A shareholder filed a lawsuit related to this matter because the alleged violation of Illinois’ Biometric Information Privacy Act (BIPA) by Amazon could have significant financial and reputational repercussions for the company. Shareholders hold a vested interest in the company’s performance and value, and any misconduct or non-compliance with legal regulations can negatively impact their investment. A shareholder must inherently put faith in the hands of a corporate executive. By filing a lawsuit, the shareholder aims to hold the company accountable for its actions and ensure that proper governance measures are put in place to prevent future violations.
Court Ruling: Shareholder Plaintiff Failed to Raise Sufficient Evidence to Proceed
Amazon has now prevailed in the shareholder portion of this case. In a recent ruling by a court in Washington state—where Amazon is located—a judge determined the shareholder plaintiff accusing Amazon of violating Illinois’ Biometric Information Privacy Act (BIPA) failed to present sufficient evidence for the case to proceed. The lawsuit, which aimed to hold the company accountable for its alleged unlawful collection and use of warehouse workers’ biometric data, was dismissed due to the plaintiff’s inability to connect the alleged violation of Illinois law to overall corporate malfeasance. As such, Amazon will not be ordered to open up its records. Though, litigation is still ongoing regarding the alleged underlying biometric data privacy violations.
Speak to Our Miami, FL Shareholder Litigation Attorneys
At Pike & Lustig, LLP, our business litigation team has the skills, tenacity, and legal expertise to help clients find the right solutions. Do you have questions about a shareholder dispute? The right attorney can be the difference. Call us now to arrange a fully private initial review of your case. We provide solutions-driven legal guidance to clients across the full range of shareholder disputes. Our firm represents clients in Miami, Fort Lauderdale, West Palm Beach, Jupiter, and beyond.