US federal court dismisses Vietnamese manufacturer Gilimex's $840m lawsuit against Amazon with prejudice after finding of fraud on the court

A Manhattan federal court has permanently dismissed an $840 million supplier dispute brought by Vietnamese textile manufacturer Gilimex (listed on the Ho Chi Minh Stock Exchange under the ticker GIL) against Amazon, after Judge Lorna G. Schofield of the US District Court for the Southern District of New York ruled that Gilimex had committed fraud on the court. In a 25-page decision, the judge found clear and convincing evidence that Gilimex intentionally submitted fabricated documents to support its claim of approximately $68m to $69m in losses arising from excess raw materials and inventory. The underlying dispute stemmed from Amazon's decision to terminate its business relationship with Gilimex, a former supplier. Gilimex had alleged breach of agreements and sought damages including treble damages (a remedy available in some US jurisdictions that multiplies the base damages award) under Massachusetts law, bringing the total claim to $840m. Electronic metadata showed that many of the purchase orders and payment demand letters submitted during discovery (the pre-trial process of exchanging evidence) had been created only days before production to Amazon, with original source files never provided. Gilimex subsequently acknowledged that more than 100 documents were fabricated, including over 90 produced during discovery, attributing the misconduct to a junior employee. The court rejected that explanation as unconvincing. The dismissal is with prejudice, meaning Gilimex is permanently barred from refiling the same claims. The court also authorised Amazon to seek reimbursement of legal fees and costs incurred in investigating and proving the fraud. No law firms advising either party are named in the available sources.

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