Amazon Settles Kickback Lawsuit With Former AWS Managers
Amazon Settles Kickback Lawsuit With Former AWS Managers Before November Trial
The Tech TL;DR:
- Amazon reached a confidential settlement on October 20, with two former AWS real estate managers, Carl Nelson and Casey Kirschner, ending six years of litigation just weeks before a federal trial.
- The former managers admitted in a joint statement to breaking Amazon’s code of conduct, though the filing does not label the payments as kickbacks or illegal transactions.
- Litigation continues against remaining defendant Brian Watson and his firm Northstar Commercial Partners, with a trial scheduled to begin on November 2 in federal court in Alexandria, Virginia.
Amazon has ended its legal battle against two former Amazon Web Services real estate managers it accused of taking kickbacks on data center deals, thenextweb.com reported. The e-commerce giant informed the court on October 20, less than two weeks before a scheduled trial, that it had reached an agreement with former managers Carl Nelson and Casey Kirschner.
Admission of Code Violations and Confidential Terms
In a joint statement reported by thenextweb.com, Nelson and Kirschner admitted to breaking Amazon’s code of conduct. However, the statement does not explicitly categorize the payments as kickbacks or illegal transactions. The remaining terms of the settlement, including whether any financial compensation changed hands, remain confidential.
“They regret their actions, apologize for failing to meet Amazon’s high ethical standards,” the joint statement noted, as quoted by thenextweb.com. A Colorado lawyer, Rodney Atherton, who established corporate entities for the two men, also settled and expressed regret for his role in the conduct.
Amazon Lawsuit Cost Nelsons Millions in Legal Fees
Amazon originally filed the lawsuit in 2020, claiming the managers took kickbacks on Northern Virginia real estate deals in exchange for steering work to developers. While the Federal Bureau of Investigation investigated Nelson, he was never charged criminally. GeekWire reported that the FBI seized $892,135 from the Nelsons’ bank accounts in 2020, and although the government returned most of those funds in a 2022 settlement, the family sold their West Seattle home, emptied retirement accounts, and spent upwards of $3 million on legal defense.
The legal dispute saw significant shifts over the years. A federal judge dismissed most of Amazon’s claims in 2023. However, in September 2025, a federal appeals court revived several claims, including racketeering and fraud, and sent the case back for trial.
Brian Watson Faces Trial over Alleged Kickback Scheme
The courtroom proceedings continue against remaining defendant Brian Watson and his Denver-based firm, Northstar Commercial Partners. According to the e-commerce titan, Northstar acquired nine data center development initiatives from 2018 through 2020 by directing kickback payments to Kirschner and Nelson. Watson has consistently denied these allegations.
The federal trial is scheduled to begin on November 2 in U.S. District Court in Alexandria, Virginia, according to thenextweb.com. Prior to the upcoming court dates, Northstar and Watson filed a motion asking the judge to order Amazon to disclose the secret settlement deal so they could review its conditions.
“Many of the things that we lost over the past four years, we can never get back. We can never get our home back. We can never get our jobs back. We can never get our reputation back.”
— Amy Nelson