All articles tagged with #clawback
The Department of Energy is reclaiming $3.7 billion in awards for clean energy and manufacturing projects made under the Biden administration, citing due diligence without specific reasons, affecting 24 projects including those by Exxon Mobil, Kraft Heinz, and startups like Skyven and Sublime Systems.
The US government is seeking to recover fees paid to a law firm with ties to a top bankruptcy judge, alleging a conflict of interest. The law firm, which has represented clients in several high-profile bankruptcy cases, is accused of receiving excessive fees and failing to disclose its connections to the judge. The government is seeking to claw back the fees and is investigating potential misconduct in the bankruptcy cases.
FTX's new leadership is seeking to claw back $243.7 million from Embed insiders and executives, claiming that the former leadership paid a "wildly inflated" price for the stock-trading platform. FTX filed a lawsuit against former CEO Sam Bankman-Fried and other top insiders on May 17, alleging that the Embed acquisition was conducted without enough due diligence. A separate lawsuit was filed on the same day seeking to claw back funds from Embed CEO Michael Giles and its shareholders, accusing FTX of paying a "wildly inflated" price of $220 million for the stock-trading platform. FTX lawyers also accused FTX insiders of taking advantage of the company's lack of controls and recordkeeping to perpetrate a massive fraud.
FTX, the bankrupt crypto exchange, is seeking to recover almost $4 billion from Genesis Global Capital, which was "largely repaid" the nearly $8 billion in loans made to Alameda Research, an FTX-affiliated entity in the weeks leading up to FTX's bankruptcy in November. FTX wants to claw back the funds received by Genesis and non-debtor affiliates so that these funds can be shared with all other creditors of the FTX Debtors in the FTX Chapter 11 Cases.
Goldman Sachs is expected to receive over $100 million for buying $21.4 billion of debt from Silicon Valley Bank, which ultimately failed to save the bank from collapse. Goldman also advised the bank on a last-minute capital raise. The compensation Goldman received and how it managed its relationship with the bank could raise questions. The fees may also be subject to regulatory scrutiny and clawback demands from lawmakers. Meanwhile, BlackRock's CEO warns that the banking sector will need to transform itself in the wake of the collapse of Silicon Valley Bank to survive.