Amazon.com Inc. on Friday disclosed that it has paid $27.5 million to settle a class-action suit that accused the Internet retailer of violating security laws.

Shareholders filed the federal lawsuit against the Seattle company in 2001, claiming Amazon.com executives and directors made false and misleading statements from Oct. 29, 1998 to Oct. 23, 2001. The alleged statements were related to the company's business, financial condition and results, inventories, future prospects and strategic alliance transactions, the company said in a filing with the Securities and Exchange Commission.

"We dispute the allegations of wrongdoing in these complaints and have been vigorously defending ourselves in these matters," Amazon.com said in the filing.

Nevertheless, the company said it paid $27.5 million to settle the suit. The settlement, however, is pending approval from the U.S. District Court in Washington.