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Recent SDNY Cases Support Denying Motion to Remand Vacatur Petition, Says Amazon

Two recent Southern District of New York decisions support Amazon’s opposition to the motion of third-party seller Shenzhen Zongheng Domain Network to remand its arbitration vacatur petition to state court (see 2306280002), said Amazon’s notice of supplemental authority Thursday (docket…

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1:23-cv-03334) in U.S. District Court for Southern New York in Manhattan. Amazon deactivated Zongheng’s account and seized its $507,619 in sales proceeds for allegedly manipulating customer product reviews. An arbitrator ruled in January that Amazon was entitled to keep the money, and Zongheng's petition seeks to vacate that ruling. U.S. District Judge Colleen McMahon entered a decision and order May 23 denying a motion for remand in the case of U.S. Rising Star v. Amazon (docket 1:23-cv-00778), said the notice. The petitioner in that action is represented by the same counsel as Zongheng and raised “substantially identical arguments” about the court’s exercise of “diversity jurisdiction over that petitioner’s vacatur action,” it said. Then on June 21, U.S. District Judge Ronnie Abrams entered a memorandum opinion and order in the case of Jiakeshu Technology v. Amazon, denying that petitioner’s motion to remand (see 2306220019), it said. As in Rising Star, the petitioner in Jiakeshu is also represented by the same counsel as Zongheng and raised substantially identical arguments about the court’s exercise of federal question jurisdiction under the New York Convention, it said.