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Consumer and environmental class actions have propelled damages in competition cases to over £160bn across 60 cases. Experts indicate that since the introduction of US-style legislation a decade ago, these group claims have surpassed all other areas of UK litigation. Currently, 60 collective proceedings are pending with the Competition Appeal Tribunal in London, including a recent claim against Motorola Solutions for over £620m. Microsoft faces allegations of licensing abuses, with claims ranging from £1.7bn to £2.1bn. The rise in class actions reflects a shift towards private enforcement, as noted by Lambros Kilaniotis from Eversheds Sutherland, who said that "private enforcement has an important role in encouraging compliance with competition law." The Consumer Rights Act 2015 has facilitated this increase by allowing "opt-out" class actions.

 

The Times

The Times reports on how the replacement for the Financial Reporting Council (FRC), the Audit, Reporting and Governance Authority (ARGA), could have “audit” removed from its title as it could narrow its remit. The paper claims sources with knowledge of the deliberations on ARGA’s scope said that the proposals for a new regulator had changed since it was first mooted and so a name change was appropriate. This comes as the proposed Audit Reform and Corporate Governance Bill remains in limbo as ministers consider revisions to points such as the definition of a “public interest entity” (PIE) and whether the new regulator should be able to punish board members who are not qualified accountants.  

 

The Times

GlaxoSmithKline has paused its diversity initiatives for UK employees, citing compliance with executive orders from US President Donald Trump.  The FTSE 100 pharmaceutical company said that the US government is its largest customer, necessitating the decision. GSK has removed references to "diversity" from its website and is reviewing all related policies. The company's move has sparked concern among UK staff, and Catherine Howarth, the chief executive of responsible investment charity ShareAction, expressed disappointment, saying: “Companies that abandon policies that promote equal opportunities will likely lose talent over time.” GSK said it maintains its commitment to inclusivity but acknowledges the need to comply with legal requirements in the countries in which it operates.

 

The Guardian

Ann Summers has accused Google of unfairly excluding it from search results due to its SafeSearch feature, which the retailer claims distorts the market for lingerie and sex toys. The company highlighted that competitors like Amazon and Marks & Spencer are not subjected to the same restrictions, despite offering similar products. The retailer reported an 11% decline in annual sales to £93m last month.

 

The Daily Telegraph

The business and trade select committee has urged the government to enforce stricter measures against modern slavery in supply chains. In a recent report, MPs highlighted the risk of the UK becoming a “dumping ground” for goods produced under poor conditions. Liam Byrne, the committee chair, called for mandatory disclosures from companies regarding their efforts to combat modern slavery. The committee also called for tougher penalties for non-compliance, including “naming and shaming” offenders. Additionally, they recommended revisions to the employment rights bill to protect workers from exploitation, particularly regarding zero-hours contracts.

 

The Guardian

Citigroup mistakenly credited $81tn instead of $280 to a customer’s account last April and took several hours to reverse the error, the FT reports. The incident, which was described as a “near miss”, could complicate the bank's efforts to convince regulators that it has resolved long-standing operational deficiencies. The erroneous transaction was not initially detected by the assigned payments employee or the secondary reviewer before it was processed the following day. 

 

Yahoo Finance

Financial Times

The Guardian

JP Morgan is under scrutiny for promoting “sustainable” funds that have invested over £200m in Glencore, the mining giant facing criticism for its environmental practices in South Africa. Jakob Thomä, chief executive of Theia Finance Labs, said: “The overwhelming majority of retail investors . . . would feel misled” by the criteria for labelling funds as sustainable. Despite excluding companies generating over 20% of revenues from thermal coal, Glencore's coal mining profits account for nearly half of its earnings. Mariette Liefferink, chief executive of the Federation for a Sustainable Environment, has urged JP Morgan to reassess its investments in Glencore due to ongoing environmental law violations.

 

The Observer

Lloyds Bank has said it will no longer include international business travel in its net zero calculations. The bank said an increase in hiring from overseas meant it had to reassess its travel pledge commitment. Removing international flights, which are one of the most polluting forms of travel, from its carbon emissions pledge will help Lloyds remain within its target of 50% below pre-Covid levels. Elsewhere, HSBC said it would push back a target of achieving net zero emissions by 20 years, from 2030 to 2050, the Telegraph reports.

 

The Daily Telegraph

HM Revenue & Customs (HMRC) is set to terminate its 10-year banking agreement with Barclays, and award a new £99m contract to Lloyds Banking Group instead. The decision follows pressure from environmental activists urging HMRC to sever ties with Barclays due to its fossil-fuel financing. The new deal, which will also include NatWest and Citigroup, is projected to be worth £334m over 12 years. The new contract will be divided into three lots, with Lloyds taking over the first lot previously held by Barclays. Despite the loss, Barclays will continue to provide merchant acquiring services to HMRC.

 

Financial Times

MSN

A study by the Institute of Directors (IoD) has found that a record high 89% of business leaders expect costs to increase in the coming year, with just 2% anticipating a fall. “As businesses adjust to an evolving cocktail of costs and risks, around half are expecting to reduce employment in response to rising costs, with price increases also being considered,” observed Anna Leach, the chief economist at the IoD. “Meanwhile, investment intentions have dipped further, as businesses expect tax increases to hit their bottom line more than previously.”

 

The Sunday Telegraph

A German court has ruled that EY Germany is not liable for damages in a lawsuit filed by former Wirecard shareholders over its audits of the now-defunct payments group. Judge Andrea Schmidt said that the auditing company could not be held liable because its reports did not constitute "public capital market information." Following the 2020 collapse of Wirecard, which left creditors with nearly $4bn in debt, EY faced significant repercussions, including a two-year ban on new audits for public interest companies. Peter Mattil, representing the plaintiffs, announced plans to appeal, while Daniela Bergdolt from the DSW association indicated that further claims against EY would be pursued if necessary. An EY spokesperson maintained that the claims are unfounded. The focus now shifts to former Wirecard CEO Markus Braun and the company's remaining assets.

 

Reuters

Italian police have seized €46.8m from Deutsche Post DHL's Italian unit amid an investigation into alleged tax fraud linked to illicit labour supply. Milan prosecutors accused DHL Express Italy srl of evading labour and tax laws through false invoices and using cooperatives to supply workers while neglecting tax and social security payments. The investigation covers the period from 2019 to 2023. A DHL spokesperson confirmed the ongoing checks, saying: "As this is part of an ongoing investigation, we cannot provide further details," while assuring that customer service remains unaffected. This marks the second seizure by Milan prosecutors, who have targeted over a dozen logistics firms for similar practices, totalling €634m in seizure orders since 2021. The prosecutors noted that DHL's business model "facilitates the exploitation of workers and results in unfair competition."

 

U.S. News

The Swiss attorney general's office has fined Morgan Stanley's unit operating in the country $1m for inadequate measures that allowed a client advisor to launder money in 2010, linked to bribes from Greece involving the convicted former Greek Defence Minister Akis Tsohatzopoulos. Morgan Stanley, which cooperated with the investigation and accepted the penalty without opposition, was also ordered to cover the costs of the proceedings.

 

Reuters

US President Donald Trump has announced the cryptocurrencies that will make up a US strategic reserve of digital assets. The price of XRP, Solana, and Cardano jumped on the news as did Bitcoin and Ethereum, which Trump said would also be included in the strategic reserve. “A strategic reserve is the holy grail of the crypto market, everything they could hope for, going from a sort of experiment to the reserve currency of the US,” said Oskar Åslund, chief strategy officer at crypto hedge fund brokerage AKJ. Trump plans to host a cryptocurrency White House summit on Friday.

 

Financial Times

Reuters

The Wall Street Journal

New York Post