Local Entrepreneurs Forced to Close Businesses Due to Amazon’s Unscrupulous Business Practices; Plaintiffs Claim Corporate Injustice, Oppression and Unethical Business Practices Among Others

LOS ANGELES, Aug. 05, 2019 (GLOBE NEWSWIRE) -- A lawsuit has been filed against eCommerce Giant Amazon Logistics by a group of companies in the Los Angeles and surrounding areas that were part of Amazon’s Delivery Service Partner Program. The Plaintiffs, the Hubper Group Companies and their affiliates, filed the complaint for Breach of the Covenant of Good Faith and Fair Dealing, Breach of Implied Contract, Estoppel, Fraudulent Concealment, Unfair Business Practices (Cal. Bus. & Prof. Code 17200, et seq.) and Intentional Interference with Business Relationship. The Plaintiffs are suing Amazon Logistics for compensatory damages, disgorgement, plus exemplary and punitive damages among others.  The Complaint was filed by Newport Beach-based law firm WHGC, P.L.C. in the Superior Court of Los Angeles on behalf of the Plaintiffs.

The Hubper Group of Companies were officially part of the Amazon Delivery Service Partner Program, formed by Amazon, and allowed entrepreneurs to make a substantial investment in setting up and funding a delivery service utilizing Amazon’s trucks, trademarks and training.  In turn, Amazon would provide the services with logistic support and orders to allow them to operate profitably.  In providing services, Amazon insisted that each Delivery Service Partner work exclusively for Amazon and use all Amazon trucks, uniforms, service manuals, etc. and adhere strictly to Amazon terms and conditions.  

The Complaint states that Amazon Logistics wrongfully and without cause terminated their Delivery Service Partner relationship with Amazon in April 2019 after the Hubper Group Companies invested approximately $4.5 million in acquisition costs, payments, training, qualifying drivers and equipment upgrades.  At the time of termination, the Hubper Group Companies employed more than 600 persons in the delivery of Amazon materials and operated approximately 9 stations covering 300 routes. Further, the Complaint states that Amazon not only put them out of business, but Amazon then proceeded to contact the Hubper Group Companies’ drivers, offering employment as independent contractors utilizing the same delivery routes.

 “This is a clear-cut story of a corporate giant knowingly and deceitfully putting a group of local entrepreneurs out of business,”  said a member of the Plaintiffs’ legal team. “Amazon Logistics convinced these hard-working entrepreneurs to invest in a business that they knew would soon render worthless, a practice that is immoral, unethical, oppressive, unscrupulous and substantially injurious to consumers overall.”

For more information on this Complaint or to speak with a member of the Plaintiff team, please contact chrismcc78@yahoo.com. 

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