All articles tagged with #due diligence
The European Parliament approved a provisional agreement to significantly reduce sustainability reporting and due diligence requirements for companies, including raising thresholds for coverage and removing certain obligations, as part of the Omnibus I package aimed at easing compliance burdens while maintaining sustainability goals.
The EU Parliament narrowly rejected a compromise on the Omnibus I package, which aimed to modify sustainability reporting and due diligence laws, leading to a delay in negotiations and uncertainty for businesses. The vote reflects deep divisions among lawmakers over the scope of regulations, with some advocating for sharper cuts and others for minimal changes.
A founder, Charlie Javice, was sentenced to seven years for fraud related to a sale to JPMorgan, highlighting issues in due diligence and the potential for large-scale financial scams, with discussions on the fairness of sentencing, the influence of elites, and the flaws in corporate oversight.
A Wall Street Journal investigation revealed that 24% of Morgan Stanley's international wealth-management accounts are flagged as high risk for money laundering, highlighting the bank's weak anti-money-laundering controls. This raises concerns about the ultrarich exploiting loopholes in the financial system. The issue is part of a broader global problem, with money laundering activities increasing significantly, particularly in Europe. Morgan Stanley has not commented on the allegations.
EU member states have voted in favor of a stripped-down version of the corporate sustainability due diligence directive, requiring companies to check supply chains for environmental and labor practices. The legislation, which still needs to be voted on by MEPs, aims to hold companies accountable for their impact on people and the environment. While some see it as a victory, others argue that the diluted plans could indirectly impact smaller businesses and lead some to withdraw from the developing world.
The EU failed to pass a supply chain law that would require audits on Chinese firms due to a lack of support from member states, including Germany and Italy, and concerns about administrative burden and global competitiveness. The law aimed to hold businesses, including those in China, accountable for their supply chains, but faced opposition from pro-business parties and companies. Negotiators will now revisit the issue, while also grappling with a forced labor ban that could impact businesses operating in China.
The European Council failed to approve a new corporate sustainability due diligence law, facing objections from countries including Germany and Italy, despite a provisional agreement with the EU Parliament. The law aimed to set mandatory obligations for companies to address their negative impacts on human rights and the environment, but faced setbacks and last-minute efforts to scale back its scope. Sustainability-focused groups expressed disappointment, emphasizing the need for responsible corporate behavior and urging the EU to find a way to ensure the legislation's approval.
A federal judge has advanced a lawsuit filed by investors against Elon Musk over his actions leading up to and after the acquisition of Twitter, now known as X. The investors claim they suffered losses when they sold their shares due to Musk's posts claiming the platform had a major issue with fake accounts and that he could back out of the deal because of it. The judge found that several of Musk's statements were false or misleading, noting that he waived due diligence as part of the deal. The lawsuit accuses Musk of driving down the company's stock to renegotiate the buyout price. Musk also faces another suit from investors who sold their shares when he was late in notifying regulators of his stake in the company.
SentinelOne denies engaging in due diligence or disclosing confidential financial information to Cisco regarding a potential acquisition, contradicting previous reports. The company also refutes claims that such diligence revealed problems with revenue reporting. SentinelOne's CEO, Tomer Weingarten, criticized the dissemination of false information by competitors, stating that it only leads to confusion and disinformation.
U.S. Steel has entered into confidentiality agreements with multiple third parties and is reviewing unsolicited proposals, ranging from partial acquisition to a complete buyout. The company's board and outside advisers will evaluate all options and make the review public to hear from interested parties. Cleveland-Cliffs, which made a $7.3 billion offer, has demanded information about all proposals received. U.S. Steel's shares rose 3.2% on Tuesday.
As the death toll from the wildfires in Maui rises, there is criticism of the federal government's response, but one local argues that it is unfair because the site is considered a crime scene and due diligence needs to be done before federal agencies can intervene. Logistical challenges, including the remote location of Hawaii, also contribute to the delay in FEMA's response.
The Tampa Bay Rays are in "close contact" with Major League Baseball (MLB) as the league conducts "due diligence" regarding social media posts about shortstop Wander Franco. The team released a statement acknowledging the allegations and stated that Franco's absence from the lineup was due to a scheduled day off. The Rays deployed debuting infielder Osleivis Basabe in Franco's place during their loss to the Guardians. Franco, who signed an 11-year extension with the Rays in November 2021, was selected to his first All-Star Game this season.
The Tampa Bay Rays are in "close contact" with Major League Baseball (MLB) as the league investigates social media posts regarding shortstop Wander Franco. The Rays released a statement acknowledging the allegations and stated that they take the situation seriously. Rays manager Kevin Cash addressed the speculation but offered no comment, clarifying that Franco's absence from the lineup was due to a scheduled day off. Franco, who signed an 11-year extension with the Rays in November 2021, has been selected to his first All-Star Game this season.
The Oklahoma City Thunder selected Keyontae Johnson with the No. 50 pick in the NBA Draft despite sexual assault allegations against him that were later dismissed. The team stated that they reviewed the dismissal of the charges as part of their normal due diligence process. Johnson, who maintained his innocence, transferred from Florida to Kansas State and had a successful season, averaging 17.4 points, 6.8 rebounds, and 2.1 assists per game. He had previously collapsed during a game due to "athlete's heart" but has since been medically cleared to play.
Temasek Holdings has reduced compensation for the executives responsible for its $275 million investment in the now-defunct crypto exchange FTX. The investment firm conducted an internal review of the investment loss incurred from FTX and found no misconduct internally. However, both its investment team and senior management took collective accountability and had their compensation reduced. Temasek has stood by its claims that it conducted an extensive due diligence process into FTX before making its investment. The $275 million FTX investment that is now written off was said to be just 0.09% of Temasek’s portfolio value of more than $293 billion at the time of the collapse.