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Supreme Court

Justices skeptical about Facebook’s data breach disclosure to investors

The justices heard arguments Wednesday in Facebook v. Amalgamated Bank, their first securities case of the year. The case involves the 2015 Cambridge Analytica-Facebook data breach, and considers whether Facebook’s disclosures to investors before the breach was public improperly downplayed the risks that data breaches posed to the company and its stock price.

Shareholders sued Facebook in 2018 after they learned that Cambridge Analytica had obtained the personal data of 30 million Facebook users. The shareholders conted that … Read the rest

Supreme Court

Justices to review Meta investors’ data-harvesting suit and Medicare payments calculation

The Supreme Court on Monday added two cases to its argument schedule for the 2024-25 term. In a list of orders from their private conference last week, the justices agreed to weigh in on a case involving the calculation of Medicare payments as well as a securities-fraud case against social media giant Meta.

The justices once again did not act on a group of petitions urging them to weigh in on the constitutionality of bans on gender-affirming care for … Read the rest

Civil Law

Dealing with investor’s veto rights for startups

Any sensible investor would want to minimise their downside risks when making an investment especially in a risky asset class portfolio such as when investing in an early stage startup. The common way on how this may be achieved is by inclusion of veto rights over certain major company actions.

With the exceptions to angels, families and friends, most financial investors (i.e. people that spend their full time daily as an investor) such as corporates and venture capitals will want … Read the rest

Civil Law

Former McDonald’s CEO Charged with Lying to Investors

When Stephen Easterbrook was first fired from his position as CEO of McDonald’s, the firing was listed as “without cause,” which allowed Easterbrook to keep his severance pay, including shares in the company. But that was before McDonald’s found out about the extent of Easterbrook’s alleged misconduct.

At the time he was fired, Easterbrook allegedly denied having any inappropriate relationships with any of his employees, except for one relationship, which he claimed had not been physical. Afterwards, an internal investigation … Read the rest