Amazon settles kickback lawsuit with former AWS managers, trial proceeds against Northstar Commercial Partners

Settlement details and admissions

Amazon has settled its lawsuit with two former AWS real estate managers, Carl Nelson and Casey Kirschner, who were accused of accepting kickbacks in exchange for steering data centre deals to specific developers. The settlement terms, including any financial agreement, remain confidential.

In a joint statement, Nelson and Kirschner admitted to violating Amazon’s code of conduct but did not characterize the payments as kickbacks or acknowledge any illegality. Rodney Atherton, a Colorado lawyer who established companies for the two managers, also settled with Amazon.

The lawsuit, filed in 2020, alleged that the managers took kickbacks on property deals in Northern Virginia. While Nelson was investigated by the FBI, no charges were filed against him.

Legal setbacks and revival of claims

In 2023, a federal judge dismissed most of Amazon’s claims, significantly narrowing the scope of the lawsuit. However, in September 2025, a federal appeals court reinstated several claims, including racketeering and fraud, paving the way for a trial against the remaining defendant.

Trial set for Northstar Commercial Partners

The lawsuit continues against Brian Watson, the founder of Northstar Commercial Partners, and his firm. Amazon alleges that Northstar secured nine data centre projects between 2018 and 2020 through kickbacks, a claim Watson denies.

The trial is scheduled to begin on 2 November in the U.S. District Court for the Eastern District of Virginia in Alexandria. Watson and Northstar have requested that Amazon disclose the settlement agreement reached with the former managers, though it remains unclear whether the court will compel its release.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

This case underscores the complexities of managing third-party vendor relationships, particularly in industries like cloud computing where data centre expansion is critical. For founders and operators, the revival of racketeering and fraud claims—despite an earlier dismissal—demonstrates how legal risks can persist even after partial resolutions. Confidential settlements may shield companies from reputational damage, but they do not guarantee closure for all parties involved. The trial’s outcome could set a precedent for how procurement misconduct is addressed in high-stakes infrastructure deals.

Key takeaways

• Founders and operators should note the risks of unchecked third-party relationships, particularly in high-value procurement like data centre deals.
• Confidential settlements can resolve reputational risks but may not deter ongoing litigation against other parties.
• The revival of racketeering and fraud claims in this case signals heightened scrutiny of corporate conduct in cloud infrastructure deals.

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