Compliance
Intel shareholder LR Trust filed a derivative lawsuit on Tuesday in the U.S. District Court for the Northern District of California, seeking a court order requiring former CEO Pat Gelsinger, current CFO and co-interim CEO David Zinsner, and other company leaders to return "all profits, benefits, and other compensation" obtained through breaches of fiduciary and contractual duties. The lawsuit alleges that these executives engaged in misleading financial disclosures related to the foundry business, exposing the company to significant legal liability and reputational damage.
The latest report from the Financial Education and Research Foundation shows that the average audit fee for listed companies in 2023 increased by 6.4% year-over-year, reaching $3.01 million. The report points out that internal control changes, M&A activity, and key personnel turnover are the main drivers of increased audit workload. Looking ahead, with the implementation of new FASB and PCAOB rules, audit fees are expected to climb further.
Legal analysts note that in the first year of the U.S. Securities and Exchange Commission (SEC) implementing its "material" cybersecurity breach disclosure rule, most public filings have been vague and of limited value to investors. With Trump returning to the White House and Paul Atkins nominated to succeed as SEC chair, the rule faces the risk of being repealed or scaled back.
The holiday season is not always "the most wonderful time of the year" for human resources departments. Jonathan Segal, a partner at the law firm Duane Morris, noted in a recent online event that company holiday parties, gift-giving, bonus calculations, and decorations all harbor compliance risks. This article outlines four common pitfalls and strategies for employers to address them.
President-elect Trump has selected FTC Commissioner Andrew Ferguson to take over as Chair and nominated antitrust expert Mark Meador to fill the vacancy. Both are part of the conservative legal establishment, and observers expect the FTC to weaken the aggressive regulation of the Lina Khan era, shifting toward a more traditional, business-friendly enforcement approach while retaining focus on tech giants.
The U.S. Securities and Exchange Commission (SEC) filed insider trading charges against former Comtech Telecommunications CEO Ken Peterman, alleging he sold his shares before the company's negative quarterly results were announced, violating trading restrictions.
The Public Company Accounting Oversight Board (PCAOB), established as an audit industry regulator under the Sarbanes-Oxley Act of 2002, can only be abolished through congressional legislation. However, Robert Pawlewicz, an assistant professor of accounting at the Robins School of Business at the University of Richmond, stated that the new presidential administration does not need to destroy the agency—it only needs to "shut it down" to render it ineffective. With Trump's re-election, SEC chair nominee Paul Atkins may push for a comprehensive overhaul of the PCAOB board, potentially leading to a significant reduction in regulatory intensity. This article reviews the PCAOB's regulatory fluctuations since its inception, analyzes potential trends of slowing enforcement, inspections, and standard-setting in the future, and explores the practical obstacles and potential triggers for abolishing the agency.
Jack Castonguay, Associate Professor of Accounting at Hofstra University, noted that FASB is highly unlikely to consider tightening accounting rules for personal financial statements after Trump's election. Previously, Daniel Tinkelman, a professor at Brooklyn College of the City University of New York, wrote to FASB requesting reconsideration of ASC 274, as its ambiguity exposed in Trump's civil fraud case became a point of contention. A FASB spokesperson stated that it would consider the matter according to procedures but declined further comment.
The Federal Trade Commission (FTC) said on Tuesday that it has sent warning letters to 21 healthcare plan marketing or lead generation companies, noting potentially misleading advertising during the open enrollment period. Samuel Levine, Director of the FTC's Bureau of Consumer Protection, emphasized that healthcare plan marketers must accurately represent the plans they sell. This action comes amid rising healthcare costs in the United States and growing public dissatisfaction with the insurance industry.
Citigroup Chief Financial Officer Mark Mason said at the Goldman Sachs conference on Tuesday that data quality issues are a common challenge facing the industry, and the continuous evolution of regulatory reporting standards has added extra complexity to the bank's transformation. Citi invested $12.2 billion in technology last year, but regulators still criticize its progress in data governance.