Posted by Keith DeYoung.

On Thursday, March 23^rd, The Justice Department ended its antitrust lawsuit against AT&T’s DIRECTV with a settlement. In early November 2016, The Justice Department filed the lawsuit, after they claimed DIRECTV was in talks with three of its rivals, then AT&T, Charter Communications, and Cox Communications. These communications allegedly contained confidential information about whether or not to carry Sports Net LA, the sole provider of Dodger games. Time Warner Cable in a deal believed to be worth 8.35 million dollars, acquired the rights to distribute the channel, and thus the other companies would have to pay Time Warner Cable in order to provide it to their viewers. However, the other cable providers believed that Time Warner Cable was charging too much for its product, and thus did not buy the rights.

In the Justice Department’s view, they broke the law when they allegedly discussed that none of them would buy the channel, in order to make sure that each company would not lose customers if one company bought the channel and the others did not. However, DIRECTV claims they did not communicate with any other company, and reason that no one accepted the channel was solely due to its price.

By allegedly agreeing not to buy the sports channel amongst themselves, and ensuring none of them would lose viewers, the Justice Department argues that the companies were in fact violating antitrust law because they were sharing confidential information amongst themselves in order to seek financial gain and stability. Antitrust laws seek to prevent vast amounts of a certain market from being held in the hands of a few, as well as promotes competition, and an overall free marketplace. This prevents monopolies and total control over a market, which often ends in unfair prices for consumers. Although DIRECTV, AT&T, Charter Communications, and Cox Communications were four different companies at the time, by collaborating and making the agreement not to carry the sports channel, it can be argued that they resembled a trust by acting as a group, and thus prompted the Justice Department to file this suit. However, by settling the case, the Justice Department instead of taking severe legal action, gave AT&T’s DIRECTV an agreement that they do not illegally communicate with other companies over confidential matters.

Now that the case is settled, AT&T who owns DIRECTV can now legally focus on their pending acquisition of Time Warner Cable. Many are critical of this deal and similarly to antitrust law, claim that it is concentrating the power of this particular market into the hands of too few, and thus creating a monopoly. Hopefully, learning legal lessons from their antitrust case, AT&T and DIRECTV can successfully tread the thin line between strategic move, and totally and unethically taking over of an entire market.

Keith is a finance major at the Stillman School of Business, Seton Hall University.

Sources:

https://www.wsj.com/articles/justice-department-settles-antitrust-claim-against-directv-1490312878

https://www.wsj.com/articles/justice-department-sues-directv-for-collusion-during-dodgers-tv-talks-1478105262

Posted by Randy Gomez.

In Business Law class, I learned about business ethics and how an entity should behave as a good citizen. In this article that I found online, it explains how the Federal Communications Commission fined AT&T 100 million dollars for slowing down data speeds to some customers. According to the FCC, AT&T violated a transparency rule by misleading customers saying that their plans were unlimited, when there was a maximum speed that customers would receive. AT&T is accused of not sufficiently informing its subscribers. The FCC chairman Tom Wheeler said “consumers deserve to get what they paid for,” and that, “[b]roadband providers must be upfront and transparent about the services they provide.”

It seems that the corporation was trying to maximize their short-term profits, by not being clear enough about the services provided to the consumer. As it usually happens when a corporation acts unethically to increase their profits, AT&T hurt their profits and now is receiving bad publicity. This is a great example of why companies have to take in consideration moral and ethical principles toward their decisions, instead of just trying to maximize profits.

Randy is a business administration major with a concentration in finance at Montclair State University, Class of 2017.

FIFA’s Audit and Compliance Committee head, Domenico Scala, said if evidence shows Russia and Qatar bought votes to have the World Cup hosted in their country, ‘the awards could be invalidated.’” This comes on the heels of U.S. federal indictments charging FIFA officials with racketeering, conspiracy, and corruption.

Russia and Qatar are not the subject of those indictments, but evidence may emerge from those proceedings about how they won the privilege of hosting the event.

Posted by Marina Tesoriero.

On March 14, federal courts unsealed documents that question the safety of Monsanto’s lead product, Roundup weed killer. Monsanto’s products, including Roundup, are used everywhere, from commercial farms, to the seeds in your backyard. Previous research has found this product and other similar products to be reasonably safe to use. That was until recently, a federal court case in San Francisco disputed that “Roundup’s main ingredient might cause cancer.”

Judge Vince Chhabria is ruling over litigation brought by people who claim to have developed non-Hodgkin’s lymphoma as a result of exposure to glyphosate, the main ingredient found in Roundup (Hakim, Monsanto Weed Killer). Chhabria is also accountable for unsealing documents. In one unsealed email, William F. Heydens, a Monsanto executive allowed other company executives to hire academics to write their name on the research ghostwritten by Monsanto. Monsanto denied having scientists ghostwrite papers and insists glyphosate is not a carcinogen.

Documents attained by federal courts show emails show between Monsanto and federal officials that suggest, “Monsanto had ghostwritten research that was later attributes to academics” (Hakim, Monsanto Weed Killer). These emails also suggested that an officer at the Environmental Protection Agency (EPA) made efforts to abolish negative reviews conducted by the United States Department of Health and Human Services about glyphosate. The documents also show that the safety assessment performed by the EPA caused disagreements within the agency itself. Robin Greenwald, a lawyer at Weitz & Luxenberg, and is also part of the litigation says, “There are superb scientists in the world who would disagree with Monsanto, even the EPA has disagreements within the agency.” These actions leave users uneasy and concerned for their health.

Marina is a business student at the Stillman School of Business, Seton Hall University.

Posted by Cynthia Mihalenko.

JBS’s plan to list shares on the New York Stock Exchange are uncertain now due to their legal issues. The company, located in Brazil, is the world’s largest meatpacker. Plans for a global reorganization were in place to try and boost their company’s value. JBS is already in the U.S. market, as they own Pilgrim’s Pride and Swift & Company. The new company they would reorganize into would be called JBS Foods International and would be based in Ireland.

Current developments have both JBS’s Chief Executive Wesley Batista and his brother, Chairman Joesley Batista, suspended from managing their companies until the investigation is over. JBS has not announced a new replacement and this has also fueled speculation that JBS’s plans for global reorganization are on hold. Company spokespeople have denied they are changing their plans and also denying any wrongdoing by the Batistas. One investigation is the overbilling in government contracts where some funds were paid as bribes to politicians. Another investigation is whether the company received favorable treatment from Brazil’s National Economic Development Bank. Analysts at some of Brazil’s banks have expressed concern that the legal problem could delay the reorganization as Guilherme Figueiredo, a fund manager at Sao Paulo base investment firm M. Safra states that “Our feeling is that the new (corruption probe) will at least delay the NYSE listing.”

Investors are rightfully fearful of JBS, now that it is under this investigation. No one wants to invest in a company if their CEO cannot be trusted. However, the Wall Street Journal interviewed several analysts and they knew of a large pool of talent that the company could tap into if they needed someone to take over should Wesley Batista step down. This should help alleviate some of the investor’s concerns.

Cynthia is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2019.

Posted by Yuanda Xu.

On Oct. 30, 2014, Sembcorp Marine’s finance director Wee Sing Guan was sentenced to 39 months in prison for falsifying the accounts of the group’s Jurong Shipyard, Sembcorp’s wholly owned unit. The company lost “hundreds of millions of dollars’ worth of marked-to-market losses that Wee had incurred on foreign exchange and options trades positions he held with a host of banks, including OCBC Bank, DBS Bank, BNP Paribas (BNP), Societe Generale (SocGen) and Standard Chartered Bank.”

According to criminal law, falsifying account records is an unlawful action. Falsifying records can influence the stock market by making investors believe the company’s stock is worth it to buy. But after a company goes bankrupt, people who hold the stock will lose all their money. The offenses “carry a maximum penalty of an unspecified fine and a seven-year jail term, for each charge.”

Yuanda is a business management major at Montclair State University, Class of 2017.

FIFA’s Audit and Compliance Committee head, Domenico Scala, said if evidence shows Russia and Qatar bought votes to have the World Cup hosted in their country, ‘the awards could be invalidated.’” This comes on the heels of U.S. federal indictments charging FIFA officials with racketeering, conspiracy, and corruption.

Russia and Qatar are not the subject of those indictments, but evidence may emerge from those proceedings about how they won the privilege of hosting the event.

The Justice Department charged fourteen people, including nine current or former FIFA figures and five sports marketing professionals, for allegedly “‘foster[ing] a culture of corruption and greed that created an uneven playing field for the biggest sport in the world,’” FBI Director James Comey said. The government alleged racketeering and corruption involving more than $150 million in bribes and kickbacks spanning two decades.

“The investigation grew out of allegations of payoffs to officials who decided where to hold the next two World Cups, the biggest international event in sports, that landed the games in Russia for 2018 and Qatar in 2022, according to three senior U.S. law enforcement officials. The U.S. was runner-up to Qatar’s win.”

FIFA appears to be relieved with the indictments. In a statement posted on its website, it said it “welcomes actions that can help contribute to rooting out any wrongdoing in football.”  FIFA further said, “We are pleased to see that the investigation is being energetically pursued for the good of football and believe that it will help reinforce measures that FIFA has already taken.”

The Clinton Foundation is under scrutiny for accepting money from FIFA and Qatar.  “In 2014, the Qatar 2022 Supreme Committee, set up by the Qatar government to ensure a successful FIFA world cup, awarded the Clinton Foundation between $250,000 and $500,000; the State of Qatar donated between $1 million and $5 million.”  According to the Clinton Foundation website, the money was for “research and development for sustainable infrastructure at the 2022 FIFA World Cup to improve food security in Qatar, the Middle East, and other arid and water-stressed regions throughout the world.”

Posted by Michael J Underkofler.

Immense controversy erupted during the election of 2016 with Donald J. Trump surrounding various issues. However, one of the biggest had to have been the various suits brought up against him regarding ample amounts of students enrolled at the infamous Trump University. “The suits contended that Trump University students had been cheated out of thousands of dollars in tuition through high-pressure sales techniques and false claims about what they would learn.” Trump and his lawyers agreed to a settlement with the student body, but one individual wanted more than just a large dollar amount.

Sherri Simpson, one of the students affected, tried objecting to the $25 million agreement to settle the fraudulent claims, saying she wants Donald tried on “criminal racketeering charges” and would not be satisfied until she received an apology. One of the lawyers, Patrick Coughlin, is quoted saying, “What she is looking for is an apology, and you can’t get that.” Ms. Simpson later responded by saying, “For him to go out there and say, well, ‘I didn’t do anything wrong,’ it’s disgusting.”

The federal judge overseeing the case, Gonzalo P. Curiel, ultimately denied the objection after deeming the amount of money more than fair. Countless other students who would have been deprived of the money if the objection had gone through, not to mention an indefinite timetable. In the article it even describes how the woman’s own lawyers were surprised and disappointed that Ms. Simpson would even bother to object to the settlement.

Michael is a finance major at the Stillman School of Business, Seton Hall University, Class of 2020.

Posted by Ailinulan Aihemaiti.

Politicians are always prone to controversy, and not even the current President of the United States, Donald J. Trump, is exempt from any of it. In 2010, a class suit was filed against Trump University upon allegations that it defrauded its students. The allegations centered around Trump University engaging in aggressive sales tactics and spreading misleading information. Former students say the university promised to teach Trump’s insider secrets of the real-estate business, but after they paid $35,000 for an education, they said they received no such “secrets.” One such student, Bob Guillo stated the Trump University advertised tricks “included using the real estate website Trulia.com to search for properties and learning about tax deductions on the Internal Revenue Service’s website” (Time).  Many others said they received a great education.

After a seven-year long battle, the Trump University lawsuit finally ended on March 31, 2017 when a federal judge declined the request from a Florida attorney to “opt out of the $25 million Trump University global settlement” (Courthouse News Service). The final settlement of $25 million will be a much better deal for the students, giving back 90 percent of what students invested in Trump University rather than the 50 percent of the November settlement. Class attorney Rachel Jensen provides even more good news, saying that the students should get their checks a few months from now if there are no appeals.

However, if an appeal is filed, the court battle could go on for years, and the settlement payments will also be held up. The prospects are still unclear as Sherri Simpson, former student who spent $20,000 on Trump University in 2010, has made movements to opt out in the March 30 hearing; she has expressed her desire to opt out to file her own fraud case against the University, despite filing an earlier claim to recover damages. Although Simpson’s proposal was rejected by a federal judge, she still has 30 days to file an appeal.

Ailinulan is a management major at the Stillman School of Business, Seton Hall University, Class of 2017.

Sources:

http://time.com/money/4573705/trump-university-lawsuit/

Judge Signs Off on $25M Trump U Settlement

http://www.courthousenews.com/wp-content/uploads/2017/03/Trump-U-Settlement-FINAL.pdf

FIFA’s Audit and Compliance Committee head, Domenico Scala, said if evidence shows Russia and Qatar bought votes to have the World Cup hosted in their country, ‘the awards could be invalidated.’” This comes on the heels of U.S. federal indictments charging FIFA officials with racketeering, conspiracy, and corruption.

Russia and Qatar are not the subject of those indictments, but evidence may emerge from those proceedings about how they won the privilege of hosting the event.

Posted by Michael J Underkofler.

Immense controversy erupted during the election of 2016 with Donald J. Trump surrounding various issues. However, one of the biggest had to have been the various suits brought up against him regarding ample amounts of students enrolled at the infamous Trump University. “The suits contended that Trump University students had been cheated out of thousands of dollars in tuition through high-pressure sales techniques and false claims about what they would learn.” Trump and his lawyers agreed to a settlement with the student body, but one individual wanted more than just a large dollar amount.

Sherri Simpson, one of the students affected, tried objecting to the $25 million agreement to settle the fraudulent claims, saying she wants Donald tried on “criminal racketeering charges” and would not be satisfied until she received an apology. One of the lawyers, Patrick Coughlin, is quoted saying, “What she is looking for is an apology, and you can’t get that.” Ms. Simpson later responded by saying, “For him to go out there and say, well, ‘I didn’t do anything wrong,’ it’s disgusting.”

The federal judge overseeing the case, Gonzalo P. Curiel, ultimately denied the objection after deeming the amount of money more than fair. Countless other students who would have been deprived of the money if the objection had gone through, not to mention an indefinite timetable. In the article it even describes how the woman’s own lawyers were surprised and disappointed that Ms. Simpson would even bother to object to the settlement.

Michael is a finance major at the Stillman School of Business, Seton Hall University, Class of 2020.