Law

Walmart adds solar burns to Tesla’s challenges

21 August 2019

The U.S. retailing giant is suing Elon Musk’s $40 bln electric-car maker for negligence after its solar panels allegedly sparked fires at stores, further denting Tesla’s quality-control image. Walmart’s move also puts Musk’s odd 2016 acquisition of SolarCity back in the spotlight.

Holding: Are white-collar prosecutors going soft?

19 August 2019

That’s the implication of declining U.S. demand for defense lawyers. It’s possible corporate America is finally behaving itself. More likely, though, the dearth of cases against banks and other companies means enforcers are both turning a blind eye and chasing different prey.

Goldman’s top brass become hostages in 1MDB fight

9 August 2019

Malaysia has filed criminal charges against current and former star bankers, including international boss Richard Gnodde. It’s a cunning way to ramp up pressure on the Wall Street firm for a mega settlement. Goldman could end up paying three times to end the sovereign scandal.

Muddy Waters’ latest broadside hits AIM as well

7 August 2019

Litigation finance firm Burford was the largest on the London exchange for growing firms in July. An attack on its complex accounting by the short seller has vaporized half its value. Less red tape and disclosure attract listings, but reduce trust – and investor returns.

Old Mutual row shows merit of the quiet CEO payoff

31 July 2019

The South African insurer’s shares lost 5% after sacked boss Peter Moyo convinced a court he should get his job back, at least temporarily. A public slanging match looks damaging for all concerned. There’s a reason why warring boards and bosses usually settle disputes quietly.

UBS’s high-court loss puts rivals in crosshairs

26 July 2019

Swiss judges are letting French authorities have details on thousands of the bank’s clients. How much it helps Paris secure a 4.5 bln euro fine in its current UBS fraud case is unclear. But it opens the door for overseas agencies to target the entire Swiss banking industry.

Santander’s Orcel offensive is double-edged sword

26 July 2019

The Spanish bank accused Andrea Orcel, the ex-UBS banker it backed out of appointing as CEO, of “dubious ethical and moral behaviour”. That calls into question Chairman Ana Botin’s original decision to hire him. This increasingly bitter battle will only produce losers.

Renault’s de-Ghosnification helps up to a point

25 July 2019

The French carmaker is parting ways with bankers and other consiglieri tied to former CEO, and recent Japanese jailhouse guest, Carlos Ghosn. It may help Chairman Jean-Dominique Senard put his stamp on the $17 bln group. But the government is still an obstacle to merger hopes.

Equifax shows how little it values consumers

22 July 2019

The credit-scoring firm gathers troves of sensitive financial information, making it systemically important. Yet it’s paying less than $3 in compensation for each of the nearly 150 mln Americans affected by its 2017 data breach. That provides little incentive to tighten security.

Reckitt’s new boss gets a $1.4 bln painkiller

11 July 2019

The Nurofen-maker paid three times more than it had put aside to settle allegations over its selling of opioid drugs. The payment preserves Reckitt’s access to the U.S. baby-food market. Incoming CEO Laxman Narasimhan can focus on bigger problems, like reviving its health unit.

Dealmakers will miss top judge’s snark and smarts

9 July 2019

Delaware Chief Justice Leo Strine is retiring after two decades of slamming conflicts, curbing lawsuits and mocking fools. His relative youth portends another act. Even if he leaves M&A’s biggest legal stage, there’s scope to refine notions of who companies are meant to serve.

Hong Kong chief’s humiliating retreat comes late

9 July 2019

Carrie Lam says her extradition bill is dead. The admission of failure is welcome but also overdue. She is bowing to get demonstrators off the streets; to regain the confidence of CEOs, investors and citizens, the city's leaders will have to show they are listening more closely.

Hong Kong protesters score Pyrrhic victory

2 July 2019

A furious faction broke into the city’s empty legislature and trashed it, deepening a crisis for Chief Executive Carrie Lam. The violence will weaken some of the movement’s support. It also may spook big business and give Beijing a pretext to dig in. There’s little to celebrate.

Empire State forces U.S. climate progress

21 June 2019

New York is mandating net-zero emissions by 2050. That means laggard companies will have to move faster towards renewable energy. More intense investor activism should follow, especially if like-minded states generating more than half America’s $20 trillion GDP join the push.

UK’s dirty-money defences tinker at the edges

29 May 2019

The sybaritic shopping habits of the subject of one of Britain’s new unexplained wealth orders make spicy reading. But the UK is not using all its tools to stop the acquisition of UK assets by illicit funds. The hefty economic contribution from the money is one reason why.

Popular Modi puts Indian resistance to the test

24 May 2019

Prime Minister Narendra Modi has been re-elected despite concerns he strong-arms the central bank, judiciary, and media. Voters seem unfussed about checks and balances - a global trend. But if he pushes them too hard, India’s democratic institutions will struggle to hold up.

Corporate clout on the line in Hong Kong fight

22 May 2019

From Washington to Wan Chai, executives are loudly protesting the city’s plan to allow extradition to mainland China. The business community often gets its way in the financial hub. Losing in this standoff would signify a turning point in Hong Kong for more reasons than one.

Apple monopoly ruling is small slice of humble pie

13 May 2019

A group of iPhone owners is free to sue Tim Cook’s company over their claim it charges too-high prices for apps in its store, the top U.S. court has ruled. A lawsuit could still take years. Even so, small defeats like this can add up. There are many ways to peel an Apple.

Deutsche Bank chair faces shareholder reckoning

29 April 2019

Failed merger talks with Commerzbank are another blot on Paul Achleitner’s seven-year tenure at the German lender. A vote against Bayer bosses suggests investors are becoming more vocal. With his own May 23 judgment day looming, Achleitner has a tough job arguing for continuity.

Holding: Comic sues, but joke’s on copyright law

23 April 2019

Heard the one about the writer who says talk-show host Conan O’Brien stole his schtick? It’s the latest case of creative types, from Radiohead to Oracle, refusing to share clever but derivative ideas. Excessive legal protections that stifle innovation are no laughing matter.