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Reuters reports that legal attacks and adverse court decisions are slowing rulemaking by the Securities and Exchange Commission (SEC) in a crucial election year. As a consequence, agency officials are rethinking rulemakings and some enforcement actions to help ensure they can survive legal attacks, according to four people familiar with the matter. Reuters notes that adverse court decisions over the past two years have blocked the SEC from overseeing the $27 trillion private funds industry; criticized its economic justification for new share buyback disclosures; and curtailed its powers to punish bad actors. Republican presidential candidate Donald Trump has vowed to fire SEC Chair Gary Gensler and slash regulations if he wins the election next week. "When the SEC does act, it's going to have to work harder to justify its position and it's going to face more skeptical courts," observed Jill Fisch, a University of Pennsylvania law professor who focuses on regulation and capital markets. "That world is going to limit what any agency chair is going to be able to accomplish."

 

Reuters

More than 500 Amazon employees have sent a letter to Matt Garman, the CEO of the company’s Amazon Web Services (AWS) unit, calling for the reversal of a full return-to-office policy and rejecting his suggestion that the rule had broad support and opponents should leave the business. “We were appalled to hear the non-data-driven explanation you gave for Amazon imposing a five-day in-office mandate,” the letter began, going on to say that Garman’s comments are “inconsistent with the experiences of many employees” and are “misrepresenting the realities of working at Amazon.” Garman had previously said nine out of 10 workers he has spoken with support the new policy, which takes effect in January. He suggested those who do not wish to adhere to the new rules can quit. "If there are people who just don't work well in that environment and don't want to, that's okay, there are other companies around," said Garman. "By the way, I don't mean that in a bad way," he said, adding "we want to be in an environment where we're working together." An Amazon spokesperson said the company offers commuter benefits, elder care and subsidized parking rates, among other things, to help with in-office work.

 

Reuters

Starbucks is facing significant challenges as sales in the U.S. have dropped 6% in the latest quarter, marking the worst performance since the pandemic. CEO Brian Niccol has initiated a plan called “Back to Starbucks” to simplify the menu and restore the brand's community coffeehouse feel. He stated: “We need to fundamentally change our recent strategy.” Customers express dissatisfaction with the high prices and the quality of coffee, with many opting for gourmet shops or brewing at home. Niccol is expected to address pricing strategies in an upcoming investor meeting, aiming to ensure that “every customer feels Starbucks is worth it every single time they visit.” The company also faces competition from home coffee makers and a growing number of rival cafes.

 

NPR / National Public Radio

Stellantis has reduced vehicle production and cut jobs in the U.S. this week, including at the automaker's Detroit Assembly Complex where the Jeep Grand Cherokee and Dodge Durango SUVs are built. “Stellantis continues to take the necessary actions to align production with sales,” said a company statement. “This includes making production adjustments at both Detroit Assembly Complex plants. The Company will continue to monitor the situation to assess whether further action is required.” Other major Stellantis facilities, including the Toledo Assembly Complex, where the Jeep Wrangler SUV and Gladiator pickup are built, also scaled back production this week.

 

The Columbian

Data reviewed by Reuters indicates many U.S. companies are bolstering their social and climate reporting in the face of sustained pressure from conservative politicians. Analysts said the trend shows the importance investors and regulators now place on environmental, social and governance (ESG) issues amid rapid global warming and shifting workforce demographics. "Most ESG problems are business problems. I'm an accounting professor. I can tell you that if you pick any company's 10K and look at the risk factors, they are full of E and S problems," said Shiva Rajgopol, who teaches at Columbia Business School. However, Reuters notes that some political conservatives say such attention is misplaced or worry the disclosures could provide activists with leverage to force companies to make unnecessary changes.

 

Reuters

The 5th U.S. Circuit Court of Appeals has ruled that Elon Musk's 2018 tweet regarding unionization at Tesla is constitutionally protected speech. On May 20, 2018, Musk tweeted: “Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues and give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare.” The court's decision overturned a previous order from the National Labor Relations Board (NLRB) that deemed the tweet a threat to employee stock options. The majority opinion stated: “We hold that Musk's tweets are constitutionally protected speech and do not fall into the categories of unprotected communication.”

 

The Columbian

Delta Airlines has filed a lawsuit against cybersecurity provider CrowdStrike, alleging a software malfunction led to a widespread "blue screen of death" incident in July, causing flight delays for 1.3m passengers and $500m in damages. CrowdStrike countersued, claiming Delta’s negligence accusations are baseless. The legal dispute, led by David Boies for Delta and Michael Carlinsky of Quinn Emanuel for CrowdStrike, may rely heavily on expert testimony around cybersecurity care standards. Experts predict that unless the case is settled early, discovery could expose evidence impacting both sides, possibly spurring further litigation for CrowdStrike from affected clients.

 

Daily Business Review

A recent report from CPA Canada and AICPA has highlighted a risk for Canada in the field of artificial intelligence (AI), suggesting that the country is at risk of falling behind, especially in comparison to the European Union’s progress with its legislative framework. The report highlighted that CPAs in executive roles are well-placed to address AI challenges and lead responsible digital transformation. It recommended that they use their expertise in governance, risk management, and assurance to guide organisations in effective AI governance. CPA Canada also advocated to speed up adoption of AI, urging the government to fast track the legislative process for Bill C-27 and introduce frameworks that support responsible AI use. C-27 is a piece of legislation to establish the Consumer Privacy Protection Act, the Personal Information and Data Protection Tribunal Act, and the Artificial Intelligence and Data Act, along with related amendments to other legislation. 

 

The Accountant Online

Ryan Smith, GoDaddy’s senior director of software development, warns of seven critical domain name security vulnerabilities that can threaten any organization’s digital assets. From “lame delegation” and DNS hijacking to BGP (Border Gateway Protocol) hijacking, these risks create prime targets for cyberattacks, which can go unnoticed until severe damage occurs. IT professionals, especially those managing domain portfolios, should prioritize these risks, deploying monitoring tools, domain tracking, and secure protocols like DNSSEC to preemptively detect and neutralize threats. Smith’s guidance underscores that proactively addressing these vulnerabilities is essential for safeguarding firm reputations, client trust, and digital security.

 

Legaltech News

The U.S. economy expanded at a robust 2.8% annual rate from July to September, driven by strong consumer spending, which rose to a 3.7% pace. Despite a slight slowdown from the previous quarter's 3% growth, the latest figures indicate resilience amid high interest rates. Ryan Sweet, chief U.S. economist at Oxford Economics, stated: "The report sends a clear message that the economy is doing well, and inflation is moderating." The personal consumption expenditures index, the Federal Reserve's preferred inflation gauge, increased at just a 1.5% annual rate, the lowest in over four years. While business investment slowed, spending on equipment surged. The economy continues to grow despite predictions of a recession, with the Fed expected to announce further rate cuts. President Joe Biden remarked: "Today's GDP report shows how far we've come since I took office." Overall, the report reflects a still-healthy economy, with consumer confidence rising and job openings decreasing.

 

Billings Gazette

The Columbian

Los Angeles Times

NJ.com