Webvan Gets Auditors Warning, Amazon.com Suit

SAN FRANCISCO — Webvan Group Inc.’s auditors have raised questions about the Internet grocer’s ability to continue as a viable business, the company disclosed in its annual report Monday.

The report also says the company has been sued by shareholder Amazon.com Inc. (AMZN) for allegedly breaching an advertising agreement between the companies, and that if Webvan doesn’t meet certain requirements before April 12, the firm’s stock will be delisted from the Nasdaq Stock Market.

In an auditor’s note in Webvan’s annual report, Deloitte & Touche LLP included a sentence saying that Webvan “has suffered recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern.”