CFTC Announces Approximately $2.5 Million Whistleblower Award

The Commodity Futures Trading Commission announced today a whistleblower award of approximately $2.5 million to be paid to an individual whistleblower. In ordering the award, the CFTC took into account the significance of early reporting of misconduct, however, the award was reduced because of the whistleblower’s delay in reporting to the CFTC.

“Today’s award goes to a whistleblower who assisted the CFTC at every step of the investigation,” said James McDonald, Director of the CFTC’s Division of Enforcement. “Although this award was substantial, it was reduced because of an unreasonable delay in reporting the violations. We hope this case illustrates the importance of reporting violations to the CFTC as soon as reasonably possible. Reporting early lessens the harm violators can inflict on the public and hastens our investigations to bring the culprits to justice.” read more »

Airbus shuts down subsidiary at center of bribery investigation

Inquiry into claims GPT paid multimillion pound bribes to win Saudi military contract

Airbus is shutting down a subsidiary that has been at the center of a long-running bribery investigation.

The UK-based subsidiary of the European aerospace group, GPT Special Project Management, has been under investigation for seven years over allegations it paid multimillion pound bribes to secure a military contract with the Saudi Arabian government. read more »

Facebook Must Face Lawsuit Over 29 Million-User Data Breach

Federal judge denies Facebook’s request to dismiss entire case

Claims can proceed for negligence and failing to protect data

Facebook Inc. failed to fend off a lawsuit over a data breach that affected nearly 30 million users, one of several privacy snafus that have put the company under siege.

The company’s disclosure in September that hackers exploited several software bugs to obtain login access to accounts was tagged as Facebook’s worst security breach ever. An initial estimate that as many as 50 million accounts were affected was scaled back weeks later. read more »

Bubble Wrap Maker Fires CFO After Review Prompted by SEC Probe

Sealed Air Corp. said it terminated Chief Financial Officer William Stiehl for cause after an internal review. Shares tumbled.

The packaging company said it began the inquiry after receiving a subpoena May 2 for information related to its selection of an independent audit firm. The review is related to a previously disclosed Securities and Exchange Commission investigation.

The termination signals potentially deeper regulatory trouble for Sealed Air, which said in August that the SEC was seeking information about income-tax accounting and financial reporting. read more »

Johnson & Johnson faces multibillion opioids lawsuit that could upend big pharma

Oklahoma is holding the drug giant with the family-friendly image responsible for its addiction epidemic

Day after day, the memos flashing across screens in an Oklahoma courtroom have jarred with the family-friendly public image of Johnson & Johnson, the pharmaceutical giant best known for baby powder and Band-Aid.

In one missive, a sales representative dismissed a doctor’s fears that patients might become addicted to the company’s opioid painkillers by telling him those who didn’t die probably wouldn’t get hooked. Another proposes targeting sales of the powerfully addictive drugs at those most at risk: men under 40.

As the state of Oklahoma’s multibillion-dollar lawsuit against Johnson & Johnson has unfolded over the past month, the company has struggled to explain marketing strategies its accusers say dangerously misrepresented the risk of opioid addiction to doctors, manipulated medical research, and helped drive an epidemic that has claimed 400,000 lives over the past two decades. read more »

Lloyds will not reveal frozen account details

Lloyds Banking Group has refused to reveal how much money is in the Jersey accounts which it has frozen amid heightened fears about financial crime.

It would not say how many of the 8,000 accounts were held by UK citizens.

Lloyds said the accounts were suspended because customers failed to respond to requests to prove their identity.

The crackdown came after the imposition of tougher money laundering rules in Jersey, which has faced pressure to improve its financial transparency. read more »