Analysis: Luckin Coffee saga a case of déjà vu?

COMPLIANCE WEEK

Earlier this week, Chinese regulators raided the offices of Nasdaq-listed Luckin Coffee after the company announced its former chief operating officer had overstated roughly $310 million of sales.

Incorporated in 2017, the company was listed on Nasdaq in early 2019 and operates in excess of 4,500 coffee shops in China. Seen as a local rival to Starbucks, Luckin Coffee achieved a market value of $4 billion, but share prices have fallen by 80-percent-plus since word of the fabricated transactions.  read more »

Warren calls for SEC to require climate risk disclosures

THE HILL

Sen. Elizabeth Warren (D-Mass.) is calling on the Securities and Exchange Commission to require public companies to disclose climate risks posed by their activities.

She wrote a letter to SEC Chairman Jay Clayton as the agency is proposing changes to financial disclosure requirements.

Publicly traded companies are not required to disclose climate-related risks, but do need to disclose risks if they are material to investors.  read more »
 

Guaranteed Rate to Pay $15 Million to Resolve Allegations It Knowingly  Caused False Claims to Government Mortgage Loan Programs

DOJ

Guaranteed Rate Inc. has agreed to pay the United States $15.06 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by knowingly violating material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or  guaranteed by the Department of Veterans Affairs (VA), the Department of Justice announced today.

The agreement resolves allegations brought by former Guaranteed Rate employee Anthonitte Carranza under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  read more »

Oregon AG announces $4.4 million settlement with Ecotrust over tax credits

KTVZ

 Oregon Attorney General Ellen Rosenblum announced Wednesday a $4.4 million settlement with the nonprofit Ecotrust and its for-profit affiliate Ecotrust Forest Management to resolve claims under the Oregon False Claims Act involving applications Ecotrust submitted to procure New Market Tax Credit financing for two development projects Ecotrust administered.  read more »