Photo of the legal professionals at Vocelle & Berg, LLP

Robotic company sues Amazon for breach of contract

On Behalf of | Jan 1, 2023 | Business Law Litigation

Amazon is one of the largest companies in the world, doing business in Florida, the entire United States and virtually every other country. It works with various suppliers and supports companies to maintain its global operations. One company contracted to provide robotics for the e-commerce giant recently filed a lawsuit claiming breach of contract. The robotics provider says that Amazon backed out of their agreement, and they are seeking $280 million in damages. 

Abrupt end of a business deal 

The robotics company was contracted by Amazon during the height of the COVID-19 pandemic to produce specific types of structures. However, Amazon abruptly ended their deal this past May. The robotics company stated that the products it provided to Amazon contributed significantly to its success, and the alleged breach of contract has left the provider with worthless inventory and other losses. 

The lawsuit alleges breach of contract, breach of fiduciary duty, unfair trade practices and negligent misrepresentation. The company sold just over 900,000 of their units to Amazon in 2021, and the plan was to make one million this year. At the request of Amazon, the robotics company also severed ties with other customers. 

Seeking monetary damages 

As seen in this situation, a Florida company has the right to seek damages for breach of contract and other contract problems. Business contracts are some of the most valuable tools available to a company, and a breach represents the possibility for significant financial loss. A lawsuit is an appropriate course of action that will allow a company to recoup losses and address other issues brought about by the breach.  

Pin It on Pinterest