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Elon Musk trial opens to decide fate of his $56 billion Tesla pay

WILMINGTON, Del, Nov 14 (Reuters) – A trial opened Monday over shareholder allegations that Tesla Inc Chief Executive Elon Musk’s $56 billion pay package was rigged with easy performance targets and that investors were duped into approving it, with Musk slated to take the stand later this week.

A Tesla (TSLA.O) shareholder hopes to prove during the five-day trial that Musk used his dominance over the electric vehicle maker’s board to dictate terms of the 2018 package, which did not even require him to work at Tesla full-time.

Musk, the world’s richest person, will testify Wednesday, Greg Varallo, an attorney for shareholder Richard Tornetta, told a court in Wilmington, Delaware, on Monday.

The trial began with Ira Ehrenpreis, a Tesla board member since 2007, taking the stand to describe the early years of the company and Musk’s role.

“I was very impressed with his vision for this endeavor,” said Ehrenpreis.

Tornetta has asked the court to rescind the pay package, which is six times larger than the top 200 CEO salaries combined in 2021, according to Amit Batish of research firm Equilar.

Musk and Tesla’s directors, who are also defendants, have denied the allegations. They argued the pay package did what it aimed to do — ensure that the entrepreneur successfully guided Tesla through a critical period, which helped drive the stock tenfold higher.

The case will be decided by Chancellor Kathaleen McCormick of Delaware’s Court of Chancery. She oversaw the legal dispute between Twitter Inc (TWTR.MX) and Musk that ended with his purchase of the social media platform for $44 billion last month.

The Tesla shareholder lawsuit argues that the pay package should have required Musk to work full-time at Tesla. The company’s shareholders have become concerned that Musk is distracted by Twitter, which he has warned might not survive an economic downturn.

Musk told a business conference on the sidelines of the G20 summit in Bali, Indonesia, on Monday that he had too much on his plate at the moment.

Legal experts said Musk is in a better legal position in the pay case than he was in Twitter’s lawsuit, which prevented him from walking away from the takeover.

Boards have wide latitude to set executive compensation, according to legal experts.

However, directors must meet more stringent legal tests if the pay package involves a controlling shareholder, and part of this trial is likely to focus on whether that description fits Musk. While he owned only 21.9% of Tesla in 2018, plaintiffs are likely to cite what is seen as his domineering personality and ties to directors.

In all, 19 witnesses are scheduled to testify, including directors and executives from 2018, compensation experts, and advisors who helped craft the pay package.

The disputed package allows Musk to buy 1% of Tesla’s stock at a deep discount each time escalating performance and financial targets are met. Otherwise, Musk gets nothing.

Tesla has hit 11 of the 12 targets as its value ballooned briefly to more than $1 trillion from $50 billion, according to court papers.

A decision will likely take around three months after the trial and could be appealed to the Delaware Supreme Court.

Reporting by Tom Hals in Wilmington, Delaware; Editing by David Gregorio and Jonathan Oatis

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Tom Hals

Thomson Reuters

Award-winning reporter with more than two decades of experience in international news, focusing on high-stakes legal battles over everything from government policy to corporate dealmaking.

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As Musk focuses on Twitter, his $56 billion Tesla pay goes to trial

WILMINGTON, Del., Nov 7 (Reuters) – As Elon Musk is engulfed in his overhaul of Twitter, the entrepreneur is headed to trial to defend his record $56 billion Tesla Inc pay package against claims it unjustly enriches him without requiring his full-time presence at the carmaker.

A Tesla (TSLA.O) shareholder is seeking to rescind Musk’s 2018 pay deal, claiming the board set easy performance targets and that Musk created the package to fund his dream of colonizing Mars.

Tesla has countered that the package delivered an extraordinary 10-fold increase in value to shareholders.

The trial begins Nov. 14 and will be decided by Kathaleen McCormick on Delaware’s Court of Chancery. She oversaw Twitter’s lawsuit against Musk that ended last month when he agreed to close his $44-billion deal for Twitter, an acquisition which he financed largely with his Tesla stock.

“If Musk loses this pay package in some massive way, I think we can expect to see a lot of things that are going to be really hard to predict, like what happens going forward in terms of how Tesla is run and how Twitter is paid for,” said Ann Lipton, a professor at Tulane Law School.

However, Lipton and other legal experts said the lawsuit by Tesla shareholder Richard Tornetta is going to be much more difficult than Twitter’s case against Musk.

Musk founded and is CEO of SpaceX, one of the world’s most valuable private companies, and founded or co-founded Neuralink, which makes brain implants, tunneling venture The Boring Co, and OpenAI, an artificial intelligence research lab. Last week, he appointed himself Twitter CEO.

‘PART-TIME CEO’

Tornetta’s lawyers argue the 2018 package failed its stated purpose of focusing Musk on Tesla. They portray Musk as a “part-time CEO,” citing his testimony that in 2018 he worked Tuesday, Wednesday and Friday at the electric carmaker and Monday and Thursday at rocket company SpaceX, according to his deposition.

According to the lawsuit, Tesla’s board chair Robyn Denholm said the “minimal time” Musk was at Tesla was “becoming more and more problematic” in a 2018 email to Gabrielle Toledano, who at the time was the Tesla Chief People Officer.

The company has argued the package was not about requiring Musk to punch a clock and be on site specific hours each week, but to hit “audacious” targets, enriching Musk but also shareholders like Tornetta.

The disputed pay package allows Musk to buy 1% of Tesla’s stock at a deep discount each time escalating performance and financial targets are met; otherwise Musk gets nothing. Tesla has hit 11 of the 12 targets as its value ballooned to $650 billion from $50 billion on the back of ramped up Model 3 production, according to court papers.

Musk’s vested grants are worth around $50 billion, according to Amit Batish at Equilar, an executive pay research firm. The grants contribute to his $200-billion fortune, the world’s largest.

Musk’s package of stock grants is larger than the combined pay of the 200 highest-paid CEOs last year – six times over, according to Batish.

The trial is likely to focus on Tornetta’s claims the package was developed and approved by directors beholden to Musk and promoted to shareholders without revealing the first tranches were probable of being met based on internal projections.

BOARD CONTROL

Tornetta’s filings are full of examples of a board controlled by Musk.

For example, Antonio Gracias, described by the plaintiff as a close friend of Musk and who was lead independent director from 2010-19, testified in his 2021 deposition that Musk could sell Tesla if he wanted and the board could not stop him.

“Who worked for who? Does Elon Musk work for the board or does the board work for Elon Musk,” said Minor Myers, a professor at UConn School of Law.

Myers said if the pay package is rescinded, the board could simply create a new one and do so with McCormick’s ruling to guide them.

But circumstances have changed, complicating the process.

“He now owns Twitter. How do they want to factor that in?” said Myers, who added that it will be a challenge to determine how to keep Musk from being distracted by other ventures.

“How much money do they need to put in front of this guy to get his attention,” he said.

Reporting by Tom Hals in Wilmington, Delaware; additional reporting by Hyun Joo Jin in San Francisco
Editing by Noeleen Walder and Nick Zieminski

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Tom Hals

Thomson Reuters

Award-winning reporter with more than two decades of experience in international news, focusing on high-stakes legal battles over everything from government policy to corporate dealmaking.

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Twitter lays off staff as Musk blames activists for ‘massive’ ad revenue drop

  • Musk looking to axe around half of Twitter’s workforce
  • Employees file class action against Twitter
  • Staff lose access to systems
  • Volkswagen pulls ads

Nov 4 (Reuters) – Twitter Inc started a major round of layoffs on Friday, alerting employees of their job status by email after barring the entrances to offices and cutting off workers’ access to internal systems overnight.

The move follows a week of chaos and uncertainty about the company’s future under new owner Elon Musk, the world’s richest person, who tweeted on Friday that the service was experiencing a “massive drop in revenue” as advertisers pulled spending.

Musk blamed the losses on a coalition of civil rights groups that has been pressing Twitter’s top advertisers to take action if he did not protect content moderation. The groups said on Friday they are escalating their pressure and demanding brands pull their Twitter ads globally.

“In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday,” Twitter said in an email to staff on Thursday evening announcing the cuts that came on Friday, which was seen by Reuters.

The company was silent about the depth of the cuts, although internal plans reviewed by Reuters this week indicated Musk was looking to cut around 3,700 Twitter staff, or about half the workforce.

Staff who worked in engineering, communications, product, content curation and machine learning ethics were among those impacted by the layoffs, according to tweets from Twitter staff.

Shannon Raj Singh, an attorney who was Twitter’s acting head of human rights, tweeted on Friday that the entire human rights team at the company had been cut.

Musk has promised to restore free speech while preventing Twitter from descending into a “hellscape.” However, his reassurances have failed to calm major advertisers, which have expressed apprehension about his takeover for months.

Volkswagen AG (VOWG_p.DE) recommended its brands pause paid advertising on Twitter until further notice in the wake of Musk’s takeover, it said on Friday. Its comments echoed similar remarks from other companies, including General Motors Co (GM.N) and General Mills Inc (GIS.N).

Angelo Carusone, president of Media Matters for America, which is part of the civil rights coalition, said he knew of two more major advertisers that were preparing to announce that they would pause ads on the platform.

Musk tweeted that his team had made no changes to content moderation and done “everything we could” to appease the groups. “Extremely messed up! They’re (civil right groups) trying to destroy free speech in America.”

Speaking at an investors conference in New York on Friday, Musk called the activist pressure “an attack on the First Amendment.”

Twitter did not immediately respond to a request for comment.

ACCESS TO SYSTEMS CUT

Dozens of staffers tweeted they lost access to work email and Slack channels before receiving an official notice, which they took as a sign they had been laid off.

They tweeted blue hearts and salute emojis expressing support for one another, using the hashtags #OneTeam and #LoveWhereYouWorked, a past-tense version of a slogan employees had used for years to celebrate the company’s work culture.

Twitter’s curation team, which is responsible for “highlighting and contextualizing the best events and stories that unfold on Twitter,” had been axed, employees said on the platform. The company’s communications team in India has also been laid off, according to a Twitter executive in Asia.

A team that focused on research into how Twitter employed algorithms, an issue that was a priority for Musk, was also eliminated, according to a tweet from a former senior manager at Twitter.

Senior executives including Vice President of Engineering Arnaud Weber also said their goodbyes on Twitter on Friday: “Twitter still has a lot of unlocked potential but I’m proud of what we accomplished,” he tweeted.

Employees of Twitter Blue, the premium subscription service that Musk is bolstering, were also let go. An employee with the handle “SillyRobin” who had indicated they were laid off, quote-tweeted Musk’s previous tweet saying Twitter Blue would include “paywall bypass” for certain publishers.

“Just to be clear, he fired the team working on this,” the employee said.

Twitter’s head of Safety & Integrity, Yoel Roth, appeared to have kept his job, as did Vice President of Product Keith Coleman, who launched a tool called Birdwatch for users to write notes on tweets they identify as misleading.

Last week, Musk endorsed Roth, citing his “high integrity” after Roth was called out over tweets critical of former U.S. President Donald Trump years earlier. Musk has also tweeted that he likes Birdwatch.

Roth and Coleman did not respond to requests for comment.

DOORS LOCKED

Twitter said in its email to staffers that offices would be temporarily closed and badge access suspended in order “to help ensure the safety of each employee as well as Twitter systems and customer data.”

Offices in London and Dublin appeared deserted on Friday, with no employees in sight. At the London office, any evidence Twitter had once occupied the building was erased.

A receptionist at Twitter’s San Francisco headquarters said a few people had trickled in and were working in the floors above despite the notice to stay away.

A class action was filed on Thursday against Twitter by its employees, who argued the company was conducting mass layoffs without providing the required 60-day advance notice, in violation of federal and California law.

The lawsuit also asked the San Francisco federal court to issue an order to restrict Twitter from soliciting employees being laid off to sign documents without informing them of the pendency of the case.

Reporting by Sheila Dang in Dallas, Katie Paul in Palo Alto, Calif., and Paresh Dave in Oakland, Calif.
Additional reporting by Fanny Potkin, Rusharti Mukherjee, Aditya Kalra, Martin Coulter, Hyunjoo Jin, Supantha Mukherjee and Arriana McLymore
Writing by Matt Scuffham
Editing by Kenneth Li, Jason Neely and Matthew Lewis

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Paresh Dave

Thomson Reuters

San Francisco Bay Area-based tech reporter covering Google and the rest of Alphabet Inc. Joined Reuters in 2017 after four years at the Los Angeles Times focused on the local tech industry.

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Zuckerberg to testify in U.S. case against Facebook’s virtual reality deal

Oct 28 (Reuters) – Meta Platforms Inc (META.O) Chief Executive Officer Mark Zuckerberg will testify in a case by the Federal Trade Commission (FTC) that argues the company’s proposed deal to buy virtual reality (VR) content maker Within Unlimited should be blocked.

In a court document filed with U.S. District Court Northern District Of California on Friday, the FTC listed 18 witnesses it plans to question, including Zuckerberg, Within CEO Chris Milk and Meta Chief Technology Officer Andrew Bosworth.

They were also on a list of witnesses submitted on Friday by defendants Meta and Within.

In addition to defending the Within acquisition, Zuckerberg is expected to be questioned about the Facebook-parent’s strategy for its VR business, as well as the company’s plans to support third-party developers, according to the court document.

The FTC had filed a lawsuit in July saying that Meta’s acquisition of Within would “tend to create a monopoly” in the market for VR-dedicated fitness apps.

The regulator argues that the proposed deal would “substantially lessen competition or tend to create a monopoly” in that market. read more

Meta, in court documents, has argued that “the FTC’s conclusory, speculative, and contradictory allegations do not plausibly plead any facts to establish that any supposed market for VR Deliberate Fitness apps is ‘oligopolistic’ as to either behavior or structure.” read more

Facebook agreed to buy Within in October 2021 for an undisclosed sum.

Reporting by Ismail Shakil in Ottawa; Editing by Aurora Ellis

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Trains, schools affected as French unions call strike amid soaring inflation

PARIS, Oct 18 (Reuters) – Regional train traffic in France was cut by about half on Tuesday as several unions called a nationwide strike, seeking to capitalise on anger with decades-high inflation to expand a weeks-long industrial action at oil refineries to other sectors.

There were also some disruption to schools, as the strike primarily affected the public sector.

Trade union leaders were hoping workers would be energised by the government’s decision to force some of them to go back to work at petrol depots to try and get fuel flowing again, a decision some say put in jeopardy the right to strike.

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But a survey by Elabe pollsters for BFM TV showed only 39% of the public backed Tuesday’s call for a nationwide strike, while 49% opposed it, and growing numbers opposed the strike by oil refinery workers.

The refinery workers’ strike has become one of President Emmanuel Macron’s stiffest challenges since his re-election in May.

Government spokesperson Olivier Veran said the requisition of more staff for refineries could occur during the day, as queues of motorists worried about supply disruption grow at petrol stations.

“There will be as many requisitions as deemed necessary … Blocking refineries, when we have reached an agreement on wages, this is not a normal situation,” Veran told France 2 TV.

Just under 10% of high school teachers were on strike on Tuesday, with numbers even lower in primary schools, education ministry data showed. The call for strike was most observed in vocational schools, where teachers oppose planned reforms.

On the transport front, Eurostar said it was cancelling some trains between London and Paris because of the strike.

French public railway operator SNCF said that traffic on regional connections was down 50% but that there were no major disruptions to national lines.

As tensions rise in the euro zone’s second-biggest economy, strikes have spilled over into other parts of the energy sector, including nuclear giant EDF (EDF.PA), where maintenance work crucial for Europe’s power supply will be delayed.

A representative of the FNME-CGT union on Tuesday said strikes were affecting work at nuclear power plants, including at the Penly plant.

The strikes are happening as the government is set to pass the 2023 budget using special constitutional powers that would allow it to bypass a vote in parliament, Prime Minister Elisabeth Borne said on Sunday.

Demonstrations are scheduled all over the country, with one in Paris from 1200 GMT.

Thousands of people took to the streets of Paris on Sunday to protest against soaring prices. The leader of hard-left La France Insoumise (France Unbowed) party, Jean-Luc Melenchon, marched alongside this year’s Nobel Prize winner for Literature, Annie Ernaux.

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Additional reporting by Ingrid Melander, Forrest Crellin and Juliette Jabkhiro; Editing by Angus MacSwan and Gerry Doyle

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Thousands take to the streets of Paris to protest soaring prices

PARIS, Oct 16 (Reuters) – Thousands of people took to the streets of Paris on Sunday to protest against soaring prices as weeks of strikes for higher wages at oil refineries spurred demands for a general strike.

The leader of hard-left party La France Insoumise (France Unbowed), Jean-Luc Melenchon, marched alongside this year’s Nobel Prize winner for Literature, Annie Ernaux. He called a general strike for Tuesday.

“You’re going to live a week like no other, we are the ones who started it with this march,” he told the crowd.

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Melenchon followed the footsteps of four unions – but not France’s biggest, the moderate CFDT – which have called for strikes and protests on Tuesday for wage increases.

The four unions also called the protests to help protect the right to strike, after the government ordered the requisitioning of some oil refinery workers, a move seen by unions as a violation of their constitutional rights.

The march followed a call by the NUPES parliamentary coalition, which hopes to turn the page on domestic violence accusations that have recently dogged senior members.

Budget Minister Gabriel Attal said the left-wing coalition was attempting to exploit the current situation, marked by ongoing strikes at French utility EDF’s nuclear plants and at French oil refineries.

“Today’s march is a march of supporters who want to block the country,” he said on French radio station Europe 1.

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Reporting by Lucient Libert and Stépahne Mahe; Additional reporting by Bertrand Boucey; Writing by Mathieu Rosemain; Editing by Nick Macfie

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Google faces $25.4 billion damages claims in UK, Dutch courts over adtech practices

The Google name is displayed outside the company’s office in London, Britain, November 1, 2018. REUTERS/Toby Melville/File Photo

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BRUSSELS, Sept 13 (Reuters) – Alphabet unit Google (GOOGL.O) will face damages claims for up to 25 billion euros ($25.4 billion) over its digital advertising practices in two suits to be filed in British and Dutch courts in the coming weeks by a law firm on behalf of publishers.

Google’s adtech has recently drawn scrutiny from antitrust regulators following complaints from publishers. read more

The French competition watchdog imposed a 220-million-euro fine on the company last year while the European Commission and its UK peer are investigating whether Google’s adtech business gives it an unfair advantage over rivals and advertisers. [ read more

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“It is time that Google owns up to its responsibilities and pays back the damages it has caused to this important industry. That is why today we are announcing these actions across two jurisdictions to obtain compensation for EU and UK publishers,” Damien Geradin at law firm Geradin Partners said in a statement on Tuesday.

Google criticised the imminent lawsuits, saying that it works constructively with publishers across Europe.

“This lawsuit is speculative and opportunistic. When we receive the complaint, we’ll fight it vigorously,” a spokesperson said.

The British claim at the UK Competition Appeal Tribunal will seek to recover compensation for all owners of websites carrying banner advertising, including traditional publishers. Britain has an opt-out regime.

The Dutch claim is open to publishers affected by Google’s actions. Litigation funder Harbour is funding both lawsuits.

($1 = 0.9860 euros)

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Reporting by Foo Yun Chee; editing by Philip Blenkinsop and David Evans

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Biden administration presses unions, railroads to avoid shutdown

The United States Chamber of Commerce building is seen in Washington, D.C., U.S., May 10, 2021. REUTERS/Andrew Kelly

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WASHINGTON/LOS ANGELES, Sept 12 (Reuters) – The Biden administration urged railroads and unions to reach a deal to avoid a railroad work stoppage, saying on Monday it would pose “an unacceptable outcome” to the U.S. economy that could cost $2 billion a day.

Railroads, including Union Pacific (UNP.N), Berkshire Hathaway’s (BRKa.N) BNSF, CSX (CSX.O), and Norfolk Southern, have until a minute after midnight on Friday to reach tentative deals with hold out unions representing about 60,000 workers. Failing to do so opens the door to union strikes, employer lockouts and congressional intervention. read more

U.S. Labor Secretary Marty Walsh is postponing travel to Ireland to remain in talks, the department said Monday.

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“The parties continue to negotiate, and last night Secretary Walsh again engaged to push the parties to reach a resolution that averts any shutdown of our rail system,” a Labor Department spokesperson said. “All parties need to stay at the table, bargain in good faith to resolve outstanding issues, and come to an agreement.”

The brinkmanship comes at a sensitive time for unions, railroads, shippers, consumers and President Joe Biden, who appointed an emergency board to help break the impasse.

A White House official told Reuters Biden has been in touch today with unions and companies to try to avert a strike, as have cabinet officials.

U.S. railroads account for almost 30% of cargo transport by weight and maintain about 97% of the tracks Amtrak uses for commuter rail. Widespread railroad disruptions could choke supplies of food and fuel, spawn transportation chaos and stoke inflation. read more

Unions, which won significant pay increases, are pushing back on work rules that would require employees to be on-call and available to work most days. Railroads are struggling to rebuild employee ranks after slashing their workforce by almost 30% over the past six years.

At midday on Wednesday, Norfolk Southern will stop accepting intermodal cargo: goods that move by combinations of ship, truck and rail transport. Those shipments include consumer products and e-commerce packages that account for almost half of U.S. rail traffic.

That could exacerbate existing backups at East Coast seaports and inland hubs, causing cascading delays across the country as farmers prepare for harvest and retailers restock stores for the Christmas shopping season. Bulk commodities – including food, energy, automotive and construction products – make up the remainder of U.S. rail shipments.

U.S. industry groups are pressuring Congress to avert the worst-case scenario.

“A shutdown of the nation’s rail service would have enormous national consequences,” the Chamber said on Monday, adding it would lead to perishable food waste, disrupt goods delivery and prevent heating fuel and chemicals transport.

The Labor Department said there have been dozens of calls by Cabinet officials and other top administration officials to help the sides reach agreement.

Railroads late last week said they would cease shipments of hazardous materials such as chlorine used to purify drinking water and chemicals used in fertilizer on Monday so they are not stranded in unsafe locations if rail traffic stops. read more

On Sunday, two unions negotiating contracts said halting hazardous shipments was designed to give employers leverage ahead of this week’s deadline to secure labor agreements. read more

As of Sunday, eight of 12 unions had reached tentative deals covering about half of 115,000 workers, the National Railway Labor Conference (NRLC) said.

Hold outs include the transportation division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) and the Brotherhood of Locomotive Engineers and Trainmen (BLET).

There has not been a nationwide U.S. rail service stoppage since 1992, when major freight railroads closed operations for two days in response to an International Association of Machinists strike against CSX, saying that a strike against one railroad was a strike against all railroads.

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Reporting by David Shepardson and Lisa Baertlein; Editing by Chizu Nomiyama, Jonathan Oatis and Josie Kao

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Bed Bath & Beyond CFO dies after falling from New York’s Jenga tower

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Sept 4 (Reuters) – Bed Bath & Beyond Inc’s (BBBY.O) chief financial officer fell to his death from New York’s Tribeca skyscraper known as the “Jenga” tower on Friday afternoon, police said on Sunday, days after the struggling retailer announced it was closing stores and laying off workers.

Gustavo Arnal, 52, joined Bed Bath & Beyond (BBBY.O) in 2020. He previously worked as CFO for cosmetics brand Avon in London and had a 20-year stint with Procter & Gamble (PG.N), according to his LinkedIn profile.

On Friday at 12:30 p.m. ET (1630 GMT), police responded to a 911 call and found a 52-year-old man dead near the building who suffered injuries from a fall. Police identified the man as Gustavo Arnal.

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The police statement did not provide further details on the circumstances leading to Arnal’s death and said the New York City Medical Examiner’s Office would determine the cause of death. Bed Bath & Beyond confirmed his death in a press statement on Sunday but gave no details.

The big-box chain – once considered a so-called “category killer” in home and bath goods – has seen its fortunes falter after an attempt to sell more of its own brand, or private-label goods.

Last week, Bed Bath & Beyond said it would close 150 stores, cut jobs and overhaul its merchandising strategy in an attempt to turn around its money-losing business.

It forecast a bigger-than-expected 26% slump in same-store sales for the second quarter and said it would retain its buybuy Baby business, which it had put up for sale. read more

Signage is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo

Arnal sold 55,013 shares in Bed Bath & Beyond in multiple transactions on Aug. 16-17, Reuters’ calculations showed based on SEC filings. The sales amounted to about $1.4 million, and Arnal still had almost 255,400 shares remaining.

On Aug. 23, the company, Arnal and major shareholder Ryan Cohen were sued over accusations of artificially inflating the firm’s stock price in a “pump and dump” scheme, with the lawsuit alleging Arnal sold off his shares at a higher price after the scheme.

The class action lawsuit listed Arnal as one of the defendants and was brought by a group of shareholders who claimed they lost around $1.2 billion.

The filing in the U.S. District Court for the District of Columbia alleged that Arnal “agreed to regulate all insider sales by BBBY’s officers and directors to ensure that the market would not be inundated with a large number of BBBY shares at a given time.”

The lawsuit also alleged that he issued materially misleading statements to investors.

The company said it was “in the early stages of evaluating the complaint, but based on current knowledge the company believes the claims are without merit.”

Shares in Bed Bath & Beyond have been highly volatile in recent months, being viewed as a so-called “meme” stock, which trade more on social media sentiment than economic fundamentals.

Cohen, a billionaire investor, disclosed a stake of nearly 10% in early March. Cohen’s RC Ventures disclosed plans to sell its stake on Aug. 17. read more

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Reporting by Kanishka Singh in Washington and Akriti Sharma in Bengaluru; additional reporting by Chuck Mikolajczak; Editing by Lisa Shumaker and Deepa Babington

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Meta’s Facebook agrees to settle data privacy lawsuit

A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier

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Aug 26 (Reuters) – Meta Platforms Inc’s Facebook has in-principle agreed to settle a lawsuit in the San Francisco federal court seeking damages for letting third parties including Cambridge Analytica access the private data of users, a court filing showed.

The financial terms were not disclosed in the filing on Friday that asked the judge to put the class action on hold for 60 days until the lawyers for both plaintiffs and Facebook finalize a written settlement.

The four-year-old lawsuit alleged that Facebook violated consumer privacy laws by sharing personal data of users with third parties such as the now-defunct British political consultancy Cambridge Analytica.

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Facebook has said its privacy practices are consistent with its disclosures and “do not support any legal claims”.

Facebook and its lawyers from Gibson, Dunn & Crutcher did not immediately respond to a request for more details regarding the settlement.

Of the two law firms representing the plaintiffs, Keller Rohrback did not comment while Bleichmar Fonti & Auld declined to comment.

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Reporting by Eva Mathews and Praveen Paramasivam in Bengaluru; Editing by Aditya Soni

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