CLOs

Facebook has settled five lawsuits alleging that its advertising systems enabled discrimination in housing, credit, and employment ads, the Associated Press (19 March, Ortutay) reports. Under terms of the settlement, the social networking giant will overhaul ad targeting so the ads cannot be used to discriminate on the basis of gender, sexual orientation, race, and other legally protected categories in the United States. In addition, Facebook has agreed to pay nearly US$5 million to cover legal fees and other costs.

From "Facebook Settles Suits Over Discrimination"
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Mexico has reached an agreement with Brazil on the free trade of light vehicles, which will allow for more open commerce between the two biggest economies. The agreement is subject to a 40 percent regional content requirement. Mexico has been seeking to diversify trading partners since U.S. President Donald Trump warned of the possible end of the North American Free Trade Agreement (NAFTA) that has underpinned Mexico's foreign trade for a quarter-century, reports Reuters (19 March, Graham).

From "Mexico and Brazil Reach Agreement on Free Trade of Light Vehicles"
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During Narendra Modi's first run for prime minister of India in 2014, corporate leaders were hopeful he would prevent corruption and end the sense of policy drift that set in under the previous government. Now, Modi is running for a second term, and corporate leaders' enthusiasm has been weakened by what some see as a mixed record on economic policy, reports the Financial Times (19 March, Mundy). Although many executives have praised Modi's government for passing vital reforms, they have been disappointed by progress on other issues, such as strained balance sheets at the country's big state-owned banks and the disruptive banknote “demonetisation” of 2016.

From "Corporate India's Enthusiasm for Modi Wanes"
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Anheuser-Busch InBev (AB InBev) is tapping ex-Altria Group CEO Marty Barrington to lead its board of directors, reports Business Day (20 March, Buckley, Giammona). Barrington is succeeding Olivier Goudet, who is exiting the position because of a potential conflict of interest related to his role as CEO of JAB Holding.

From "AB InBev Appoints Former Altria CEO as Chair"
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In 2018, the European Union ruled that Google had abused the dominance of Android, forcing phone makers into installing its search engine and Chrome web browser on mobile phone. Now, Google said it plans to begin offering Android smartphone users in Europe their choice of search engines and browsers. The company also said it started testing a new format for product ads it shows atop search results that is aimed at sending more traffic to the websites of rival shopping-comparison services, reports the Wall Street Journal (19 March, Schechner, Pop). Google is making both changes at the request of the commission, after competitors raised complaints about whether Google was complying with its 2017 and 2018 orders to stop what the commission determined to be anticompetitive behavior.

From "Google Offers Concessions to Head Off EU Antitrust Action"
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The U.S. Treasury Department has imposed sanctions on Venezuela's Minerven state gold mining company, claiming the company illicitly props up the regime of President Nicolas Maduro, reports Bloomberg (19 March, Bronner). Minerven is the sole state gold processor in Venezuela. The Treasury Department said it buys gold from miners and melts it into bars. The military then transports the bars to air bases outside Caracas and then to the Central Bank of Venezuela. Treasury says that since 2016 the Maduro regime has purchased the equivalent of hundreds of millions of dollars' worth of gold, allowing the government to use the gold as a financial lifeline abroad.

From "U.S. Sanctions Gold Company for Supporting Venezuela's Maduro"
Abstract News © 2019 Information, Inc.

Fortune (19 March, Abril) reports that the California Consumer Privacy Act, which goes into effect in January, will significantly limit how businesses handle, store, and use consumer data. In addition, the law will require companies to be more transparent, give consumers the ability to delete and download collected data, and give them the opportunity to opt-out of the sale of their data. A newly published TrustArc survey found that 86 percent of companies have not completed preparations to be compliant with the new state law.

From "Most Companies Aren't Ready for California's New Data Privacy Law"
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GCP Applied Technologies has appointed James E. Thompson to the position of vice president, general counsel and secretary effective 8 April, 2019. Thompson is currently senior vice president, general counsel and chief ethics and compliance officer at Avon Products, reports Nasdaq (19 March).

From "GCP Applied Technologies Names New GC"
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A jury in the U.S. District Court in San Francisco has found that a man developed cancer from exposure to Roundup weedkiller he used in his yard. The jury is now set to begin hearing evidence to separately weigh whether Bayer's Monsanto unit should be held liable. The verdict marks another setback for Bayer, which has come under pressure since a different jury in August reached a US$289.2 million verdict in the first case over the weedkiller to go to trial. Bayer faces lawsuits in the United States from about 11,200 farmers, gardeners , and landscapers, which claim its glyphosate-based herbicides cause non-Hodgkin lymphoma and other cancers, reports the Wall Street Journal (20 March, Randazzo, Bender).

From "Jury Says Bayer's Weedkiller Responsible for Cancer"
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A Chinese group that owned MP & Silva is suing Andrea Radrizzani and Riccardo Silva, founders of the collapsed European sports firm, after losing hundreds of millions of dollars. According to the legal filing, the consortium filed a claim alleging commercial fraud. The Chinese investors, who bought control of MP & Silva in a 2016 deal valued at US$1 billion, had sent letters to the former owners, alleging that the company's sports-rights contracts could not be easily renewed, according to people familiar with the matter. Sources said some of the allegations concern the way that MP & Silva, under Chinese ownership, lost key contracts and failed to hang on to a sufficient number of experienced deal-makers, reports Bloomberg (19 March, Browning, Hellier).

From "Chinese Investors Sue After Sports Deal Goes Bust"
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According to government sources, Germany plans to pass legislation by the end of the year to create a state-owned fund that can protect companies from takeovers by Chinese and other foreign firms. Two senior government officials said the idea was for the state-owned investment fund to work with the private sector when buying company stakes to foil unwelcome takeovers, reports Reuters (20 March, Nienaber). Long an ardent advocate of free markets, Germany’s move is a response to China’s state-driven change from customer to competitor and U.S. President Donald Trump’s threats of unilateral trade sanctions and higher tariffs, the sources said.

From "Germany Plans to Create Fund to Foil Takeovers by Foreign Companies"
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As an investigation into potential misconduct continues, reports Deadline.com (18 March, D'Alessandro, Patten), WarnerMedia announced Monday that Warner Bros. Chairman and CEO Kevin Tsujihara is exiting the company, effective immediately. WarnerMedia is continuing to work with a third-party law firm to complete its investigation with Tsujihara's cooperation in the wake of recent texts that were published in the trade papers revolving around the executive's alleged involvement in having British actress Charlotte Kirk cast in Warner Bros. movies following an extramarital affair with her.

From "Warner Bros. Chief Stepping Down"
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Louis du Preez, the new CEO of Steinhoff, has revealed to South Africa's parliament that former Steinhoff Chief Executive Markus Jooste and seven others were involved in a €6.5 billion accounting fraud at the retailer, reports Reuters (19 March, Motsoeneng, Roelf). Steinhoff said on Friday an independent report had found it overstated profits over several years in the fraud that involved a small group of top executives and outsiders. The company did not name the individuals last week, citing legal reasons, but during Tuesday's session in parliament South African lawmakers instructed Louis du Preez, who was appointed CEO last year, to reveal those involved. Du Preez named Jooste and former Chief Financial Officer Ben la Grange, along with six other people.

From "Steinhoff Fraud Detailed by New CEO"
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The Wall Street Journal (18 March, Farrell) reports that Lyft is pegging its valuation at up to US$23 billion as the company kicks off the roadshow to market its initial public offering (IPO). The valuation includes the US$2 billion Lyft expects to raise in the offering. The company and its underwriters will set a final IPO price based on feedback from investors in the roadshow.

From "Lyft Plans to Raise US$2 Billion in IPO"
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After the mass shootings at mosques in New Zealand, Australian Prime Minister Scott Morrison and Bill Shorten, the country's opposition leader, have criticized the role of technology companies in amplifying extremist views. Both politicians said that tech companies must do more to stop hate speech. In an op-ed for the Herald Sun newspaper, Shorten wrote that “social media is a marvelous tool that has the potential to empower us, but too often it resembles a toxic swamp where wrongdoers can hide and where evil is nurtured.” Morrison is calling for a tougher approach to weeding out extremist content on the internet, saying technology firms have a "moral obligation to protect the communities which they serve and from which they profit," reports CNet (18 March, Reilly).

From "Australian Politicians Call for Crackdown on Social Media After Mosque Shooting"
Abstract News © 2019 Information, Inc.

Goldman Sachs said that it is working to improve its diversity. In a memo to employees, CEO David Solomon said the bank was expanding its goal of 50 percent female recruitment in the crop of analysts it picks from college campuses each year. The bank will now include in that goal people hired laterally into entry-level jobs and set goals for several diverse groups. The bank aims to have 11 percent of those recruits be black and 14 percent be Hispanic/Latino in the Americas. Meanwhile, Goldman also shared new steps to address diversity within its more senior ranks. In his memo, Solomon said that the bank would require two diverse candidates to be interviewed for all open roles, ask business unit heads to increase their focus on career progression, and consider progress on diversity goals when evaluating senior managers' pay and promotion, reports the Washington Post (18 March, McGregor).

From "Goldman Sachs Seeks to Boost Diversity"
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Ameriprise Financial, Chubb, Mondelez International, MSCI, and Tractor Supply have agreed to share details about their political spending in response to rising investor pressure on directors to explain how they use shareholders' funds to influence campaigns. The move by the five U.S. companies represents a significant step forward for corporate governance campaigners, who have used the threat of votes at annual shareholder meetings to wring extra disclosures from companies, reports the Financial Times (19 March, Edgecliffe-Johnson). Last year, supermarket chain Publix suspended its politician contributions after protests over its donations to a candidate in Florida, while Intel and Purina cut off their financial support for Steve King, an Iowa congressman, after he expressed support for white nationalism.

From "U.S. Companies Agree to Share Details on Political Donations"
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Latin American carrier America Movil announced that it will acquire Nextel in Brazil for US$905 million, reports TechCrunch (18 March, Lunden). America Movil already operates in the country with Claro, which it plans to merge with Nextel to “consolidate its position as one of the leading telecommunication service providers in Brazil,” the company said.

From "America Movil Acquires Nextel in Brazil"
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The Australian Prudential Regulation Authority (APRA) has warned superannuation funds to avoid financial activism, reports the Sydney Morning Herald (18 March, Bagshaw). The warning comes after the Australian Council of Trade Unions (ACTU) threatened to use the union and employer-backed super funds for a campaign on wages and employee conditions. That threat follows the ACTU being exonerated during the banking royal commission. APRA Chair Wayne Byres said, "APRA expects that trustees will carry out their role and meet their responsibilities free from the influence of sponsoring organizations or any other external parties."

From "Australian Super Funds Warned by Regulator Over Activism"
Abstract News © 2019 Information, Inc.

Grant & Eisenhofer P.A. and DRRT have filed a lawsuit in Copenhagen on behalf of investors from 19 countries, asserting “fraud claims stemming from a massive Russian money-laundering scheme and multi-year cover-up” by Danske Bank. The investors are seeking US$475 million in damages. Danske and four former top executives are already facing another lawsuit in New York by a U.S. pension fund, which accused the bank of defrauding investors and inflating its share price by hiding and failing to stop widespread money laundering, reports Reuters (19 March, Jacobsen).

From "Danske Bank Investors Sue for Damages Over Money Laundering Scandal"
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