Amazon Deal Sold Out Owlcam Investors for Kickbacks, Suit Says

Dashcam maker Owl Cameras Inc., its directors, and Amazon.com Inc. were hit with a Delaware lawsuit claiming their deal to license Owlcam’s intellectual property to Amazon—in exchange for seven-figure kickbacks and plum jobs for the board—sold out shareholders.

“The board permitted its self-interested executive directors to cast aside the best interests of stockholders and negotiate their own secret deal with Amazon,” the suit says. “Amazon knowingly participated in that breach.”

According to the Chancery Court complaint, Owlcam’s directors “sabotaged negotiations” that were already underway late last year to sell the cash-strapped company to nonparty RSP Echelon Ventures Ltd. for $84 ...