According to the New York Times, chemical giant, 3M, reached a $10.3 billion settlement deal with U.S. cities and towns regarding claims that the company contaminated drinking water with so-called forever chemicals used in everything from firefighting foam to nonstick coatings. Questions: Source: Friedman, L and V. Giang. (2023) 3M Reaches $10.3 Billion Settlement in… Read more »
Posts Tagged: settlement
TD Bank settles Ponzi Scheme case
According to the New York Times, TD Bank agreed to pay $1.2 Billion to settle a Ponzi Scheme Case. Question: Source: Goldstein, M. (2023). TD Bank Agrees to Pay $1.2 Billion to Settle Ponzi Scheme Case. The New York Times, Feb. 27 (Retrievable online at https://www.nytimes.com/2023/02/27/business/stanford-ponzi-scheme-settlement.html).
More Than Three Years of Legal Battles End in Settlement
According to the Washington Post, Juul Labs, an e-cigarette manufacturer, announced that it reached a settlement with almost 10,000 plaintiffs for 5,000 cases alleging nicotine addiction and other health problems. Questions: Which company partially owns Juul? What long-term health consequences have e-cigarettes been linked to? In September, a lawsuit was brought by 33 U.S. states… Read more »
E & Y Charged
According to Accounting Today, the Securities and Exchange Commission (SEC) charged Ernst & Young (EY), one of its current partners, and two of the firm’s former partners Monday with violating auditor independence rules and improper professional conduct. Questions What was the public company audited by EY according to this charge? What were the auditor independence… Read more »
GE owes $200 Million fine
According to Accounting today, General Electric Co. was fined $200 million for allegedly misleading investors about the finances of its gas-power unit, as well as a run-off insurance business. Questions: According to the article, what did GE fail to explain to its shareholders? What is GE required to report for the first year to the… Read more »
Do These COVID-19 Protections Make Sense?
According to the Guardian, ten companies that allegedly polluted air and water will not be required to pay penalties they agreed to before June 1. Questions: What total in civil penalties will not be made by these ten companies? Why are these penalties being delayed and do you believe this is a good policy? Who… Read more »
Deceptive Practices
Progressive Leasing, which offers rent-to-own programs at major retailers like Best Buy and Lowe’s, has agreed to pay $175 million to settle allegations it misled consumers, the Federal Trade Commission said Monday. Questions: What trade violations did the complaint allege? Why did FTC Commissioner Rebecca Kelly Slaughter say that the settlement did not go far… Read more »
Equifax Hack Settlement
According to the Washington Post, nearly half of all Americans were affected by the 2017 Equifax data breach, where hackers stole personal data for more than 147 million people: credit card numbers, Social Security numbers and other identifying information. Now, as part of a settlement agreement with the Federal Trade Commission, the people whose data… Read more »
Fines have little impact
Typically, fines need to be high enough to change the behavior of a company. According to Buzz Feed News, $3 billion is too low to change the behavior of Facebook. Questions: During the first three months of 2019 after the $3 billion fine, how much did the revenues of the company grow? How much did… Read more »
Mesh Lawsuits
This New York Times article exposes a growing industry that makes money by coaxing women into having surgery — sometimes unnecessarily — so that they are more lucrative plaintiffs in lawsuits against medical device manufacturers. Questions: 1. What is the role of lawyers in this industry? 2. What is the role of marketers in this… Read more »