Amazon at the Friday night dump…

Late Friday, Amazon (AMZN) took a trip to the SEC filings dump and filed this 8-K announcing it had finally settled the five year-old lawsuit with Toys R Us for $51 million. The filing was just one sentence, but because the settlement “substantially all of which was unanticipated” in Amazon’s words, the stock is down so far this morning.

We first footnoted that lawsuit nearly three years ago, picking it up in a Toys R Us filing. At the time, Amazon had sought to move the case to Washington state, where it is based, as opposed to New Jersey, where Toys R Us is based and the legal maneuvering continued over the past few years.

Then, in Amazon’s most recent 10-Q filed on April 24, it disclosed that an appellate court had sent the case back to trial court to award damages and that Toys R Us was seeking $93 million, which Amazon said was “grossly overstated”. Back in April, Amazon gave indications that it planned to continue fighting, so the $51 million settlement is a bit of a surprise.

Left unsaid, or perhaps hard to really calculate, are the legal fees over the past five years involved with this long drawn out case. How much did Amazon spend trying to fight this case? That number is no doubt buried in the SG&A and we’re betting it was pretty sizable.


Since the beginning of the month, we’ve been asking footnoted readers to support the site and help cover its expenses. But today is June 15 and we’re only 17% of the way to our goal. Just to be clear, the money is used to cover back-end technical support, hosting, and part of the salaries for researcher/reporter Sonya and our new intern, Kristen. Advertising used to cover these expenses, but in the current environment, it no longer does. If you value the independent SEC filings reporting on and want to see it remain free and open to all, please contribute today. If everyone who reads the site kicked in just $1 today, we’d more than meet our goal, even after the fees that Paypal extracts.