SEC Charges Navistar and its CEO for Misleading Investors
Navistar International Corp. and its former Chief Executive Officer, Daniel Ustain, agreed to settle their charges with the SEC for $7.5 million for misleading investors by failing to disclose their difficulties of obtaining Environmental Protection Agency (EPA) certification for an advanced technology truck engine that they later abandoned. Click here to read more.
TV Commentator Settles SEC Charges
Former market analyst and TV news commentator, Tobin Smith, and his company, NBT Group Inc., agreed to settle SEC charges that they fraudulently promoted a penny stock to investors by not disclosing their compensation for promoting the stock of IceWEB Inc., a data storage company. Click here to read more.
FTC Sues VW for False Clean Diesel Claims
The FTC filed a complaint charging Volkswagen with multiple violations of the FTC Act for its deceptive representations regarding "clean diesel" and other eco-conscious claims that were only possible because of its “defeat device” that permitted its vehicles to cheat on emissions testing. Click here to read more.
Class Action Accuse Starbucks of Underfilling
A class action lawsuit alleges that Starbucks underfills its lattes by about 25% below the advertised sizes of 12, 16 or 20 ounces. Click here to read more.
Nationwide Recalls of Canned Tuna
Bumble Bee Foods and Chicken of the Sea announced nationwide canned tuna recalls because of equipment malfunctions and commercial sterilization process at production facilities. Click here for more information on the recalls.
Apps Must Notify Consumers If They Are Listening
Federal Trade Commission sent warning letters to app developers, who have installed a piece of software called Silverpush, that can monitor a device’s microphone to listen for audio signals that people can't hear but are embedded in television advertisements. The apps notify users that they can listen, collect and share information about them. Click here to read more.
Glass in Frozen Food and Beer Leads to Recalls
The FDA annouced that Nestlé USA is voluntary recalling of a limited number of DiGiorno®, Lean Cuisine®, and Stouffer’s® products due to the potential presence of glass pieces. The list of effected products and their codes can be found here. Constellation Brands Beer Division also issued a recall of some US-distributed Corona Extra 12-packs and 18-packs due to particles of glass in the product. The recalled Corona production codes can be found by clicking here.
Video Game Bond Offering Leads to SEC Charges
The SEC charged a Rhode Island agency and its bond underwriter Wells Fargo Securities with defrauding investors in a municipal bond offering to finance startup video game company 38 Studios. The SEC alleged that the $75 million bond offering failed to inform investors of the risks of the investments, specifically that 38 Studios faced a funding shortfall even with the loan proceeds and could not develop the video game without additional sources of financing which led to their
The Met Agrees to Change Wording of Admission Pricing
The Metropolitan Museum of Act in NYC agreed to change its admission sign pricing from "recommended" to "suggested" in response to class actions filed against it. The lawsuits claimed the advertised pricing confused visitors into paying the full price of $25, when they were only required to pay what they wanted. Click here to read more.
Walmart and Kraft Sued for Wood Pulp in Parmesan Cheese
Class actions were filed against Walmart and Kraft Heinz on the heels of a Bloomberg investigative report that revealed a manufacturer, who pled guilty to charges, was placing wold pulp in parmesan cheese. An estimated 20% of cheeses in US contain this. Click here to read more.
