– CNBC reported that California Attorney General Rob Bonta sued ExxonMobil, alleging that the company had for decades waged a ‘campaign of deception’ to mislead consumers and convince them that recycling was a viable solution for plastic waste. The lawsuit says ExxonMobil promoted recycling as a ‘cure-all for plastic waste,’ even though the company knew that plastic would be difficult to eradicate and that certain methods of recycling could not process much of the waste produced. It also alleges that ExxonMobil violated state regulations over water pollution and misleading marketing, among others.
‘ExxonMobil knew that 95 percent of the plastic in the blue bin was going to be incinerated, go into the environment or go into a landfill,’ Bonta said in an interview. ‘They knew and they lied.’
In a statement, ExxonMobil said that ‘advanced recycling’ is effective and that the company has kept more than 60 mn pounds of plastic waste out of landfills using the method. ‘For decades, California officials have known their recycling system isn’t effective. They failed to act, and now they seek to blame others. Instead of suing us, they could have worked with us to fix the problem,’ ExxonMobil said.
– Reuters (paywall) reported that Vista Outdoor has again delayed a special shareholder meeting to vote on Czechoslovak Group’s (CSG) $2.15 bn offer for the firm’s ammunition unit and a stake in its outdoor division. The meeting, which was scheduled to take place on September 27, has been delayed to October 9. The revised date would be the last possible before the deal with CSG terminates on October 15, Vista said.
Vista declined to comment on why the meeting was delayed.
The company had previously delayed the meeting six times as it fielded multiple offers since October last year, when CSG first made a bid for the company’s ammunition unit.
– The Wall Street Journal (paywall) reported that the US Department of Justice (DoJ) said compliance officers should add AI to the list of things they should worry about. The DoJ announced changes to guidance – known as the Evaluation of Corporate Compliance Programs – prosecutors use to assess a company’s compliance program when it comes under investigation for bribery, fraud or other criminal offenses. Officials say companies with good compliance programs that are in line with the guidance are eligible for more lenient treatment even if there is a compliance problem.
In addition to AI, the guidance revisions address how companies should handle whistleblowers and how they should incorporate data and lessons learned from prior misconduct within their business and at others.’ The changes expand on the idea that companies should constantly assess risks, learn from compliance mistakes and adapt their compliance programs as necessary.
‘The government is trying to push for more quality over just ticking the boxes,’ said Steve Solow, a former federal prosecutor who advises on compliance. ‘What they are really focusing on now is compliance performance.’
– According to CNBC, Starbucks CEO Brian Niccol said the company is committed to bargaining in good faith with the union that represents many of its baristas as the two sides work to develop a labor deal. ‘I deeply respect the right of partners to choose, through a fair and democratic process, to be represented by a union,’ Niccol wrote in a letter to the union. ‘If our partners choose to be represented, I am committed to making sure we engage constructively and in good faith with the union and the partners it represents.’
Niccol was responding to a letter from the Starbucks Workers United bargaining delegation sent ahead of another bargaining session between Starbucks and the union. The two sides are negotiating a framework that would be the basis for collective bargaining agreements between individual stores and the company.
– CNN reported that the DoJ filed a lawsuit accusing Visa of illegally monopolizing the debit card market. The department alleges that for more than a decade Visa has abused its dominant position in the debit card market to force businesses to use its network instead of competitors’ and to stop new alternatives from entering the market.
‘We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market,’ Attorney General Merrick Garland said in a statement. ‘Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything.’
Visa said in a statement that the lawsuit is without merit and that it will defend itself in court. The company said it faces growing competition, particularly online. ‘Anyone who has bought something online, or checked out at a store, knows there is an ever-expanding universe of companies offering new ways to pay for goods and services,’ Julie Rottenberg, Visa’s general counsel, said in a statement. ‘Today’s lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving.’
– Pest control company Rentokil Initial said that Trian partner Brian Baldwin would join the Terminix owner’s board effective next week, CNBC reported. The company said Baldwin, who has worked at Nelson Peltz’s activist investor firm since 2007, will also join the nominating and compensation committees.
The move comes three months after Trian first disclosed a roughly $400 mn position in Rentokil and two weeks after the company issued a profit warning.
– Reuters reported that Masimo founder Joe Kiani decided to step down as the company’s CEO, days after shareholders voted to remove him from the board following a proxy battle with activist investor Politan Capital Management. The company named Michelle Brennan as interim CEO. Brennan was nominated by Politan for Masimo’s board last year, along with the hedge fund firm’s founder Quentin Koffey. Both were elected by shareholders.
Masimo’s shareholders last week elected another two director candidates proposed by Politan and removed Kiani, its longtime CEO and founder, from the board. Kiani had said in the past that he would quit as CEO and sell his shares if investors replaced him on the board with a Politan nominee. Masimo also formally appointed the two director candidates, Darlene Solomon and Bill Jellison, proposed by Politan to its board.
Ben Maiden
Ben Maiden is the editor-at-large of Governance Intelligence, an IR Media publication, having joined the company in December 2016. He is based in New York. Ben was previously managing editor of Compliance Reporter, covering regulatory and compliance...
