By Mike Scarcella

Dec 19 (Reuters) - Amazon.com AMZN.O is facing a new lawsuit from a major U.S. retail liquidation firm that claims it was overcharged for buying up products in bulk from Amazon warehouses around the country.

Ohio-based Xcess Ltd sued Amazon in federal court in Akron on Wednesday, alleging it breached a liquidation agreement and that its business practices violated a Washington state consumer protection law.

Xcess and other liquidators buy slow-selling or non-selling products in bulk at a discount from retailers like Amazon and resell them to consumers and other outlets.

Amazon knew some of the items it was selling to Xcess had inflated prices, according to the lawsuit. Xcess cited smartphone cases that Amazon sellers priced at hundreds of dollars, and a pair of basic solar eclipse glasses for $40.

Some product sellers knew they could jack up their retail prices because Amazon would pass along those overcharges to companies like Xcess, the lawsuit said. Amazon also allegedly invoiced Xcess for items that could not be resold, including goods that were past expiration or subject to a recall.

Amazon and Xcess did not immediately respond to requests for comment. The companies have clashed in recent months over Amazon’s claims that Xcess defaulted on obligations under its liquidation agreement, the complaint said.

Xcess said it first agreed to a liquidation services deal with Amazon in 2016. By 2022, the contract covered 60 Amazon product fulfillment centers around the country, according to the lawsuit.

Amazon “periodically” told Xcess that invoices contained inflated prices, and said Xcess could identify excessive charges and receive credit. But overcharges often were buried in invoices with millions of lines, and so identifying them was laborious, Xcess said.

The lawsuit also said Amazon illegally interfered with Xcess' business plans with another company, Liquidity Services LQDT.O, that won a large contract with Amazon in June.

The lawsuit seeks unspecified monetary damages and a declaration that Xcess does not owe anything to Amazon.

The case is Xcess Limited v. Amazon.com Services LLC, U.S. District Court, Northern District of Ohio, No. 5:24-cv-02205-JRA

For plaintiff: Michael Gladman and Matthew Corcoran of Jones Day

For defendant: No appearance yet

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(Reporting by Mike Scarcella)

((Mike.Scarcella@thomsonreuters.com;))