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The Morning Risk Report: Record Pace for Website Accessibility Lawsuits |
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A soccer fan who is both deaf and blind uses a Braille display to read soccer news before the World Cup match between Brazil and Mexico on July 2, 2018. PHOTO: Nelson Antoine/Associated Press
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Good morning. Lawsuits accusing companies of failing to make their websites accessible to people with disabilities are being filed this year at a record pace, according to law firm Seyfarth Shaw.
If the pace continues the number of lawsuits filed in 2018 for violating Title III of the Americans with Disabilities Act will exceed 2,000, some 30% above the 2017 total, with most of the new cases dealing with website accessibility issues, the law firm said.
More plaintiffs’ attorneys are getting in on the action, knowing they are likely to get quick settlements because defending these cases can be expensive and uncertain, said Minh Vu, an attorney at Seyfarth Shaw. "Most courts have refused to dismiss these cases early, which means that companies that want to litigate are in for the long haul," she said.
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An accessible website is one whose content and functionality can be accessed by people with various types of disabilities, said Ms. Vu. Many blind people, for example, use software that reads aloud or translates to Braille the information that is on a webpage. However, the software only works if the page is coded to be compatible with that software, she said.
"People who are deaf or hard of hearing need accurate closed-captioning for online videos that have audio content," said Ms. Vu. "People with mobility limitations who cannot use a mouse need websites to be navigable only by keyboard."
Given the onslaught of lawsuits, Ms. Vu said companies should make their websites accessible as soon as possible. "It’s not an easy process to navigate, even for companies with sophisticated IT departments," she said.
The National Federation of the Blind would like to see more progress in expanding website accessibility, said spokesman Chris Danielsen, though he said he is noticing more companies making some effort to expand accessibility.
The federation is focused on making sure companies make their websites and software accessible enough for disabled people to get and maintain jobs, he said.
"Most sites are not completely accessible or completely inaccessible, they are somewhere in between," said Mr. Danielsen. "There does seem to be more awareness and, hopefully, people are being more proactive."
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Dankse Bank A/S, Denmark’s largest bank by market value, named a new chief compliance officer and added him to its board of directors. Danske Bank’s compliance chief earlier this month said he would step down as the bank deals with a money-laundering scandal in Estonia.
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Theranos Inc. settled a suit filed by investors who had alleged they were defrauded by the blood-testing firm, WSJ reports. The pact ends a civil case brought by Robert Colman, a former Silicon Valley investment banker, and other plaintiffs who made indirect investments in Theranos. They alleged Theranos made false and misleading statements about its technology.
A loophole in the Dodd-Frank Act is preventing regulators from knowing all that is happening in the derivitives market that helped trigger the financial crisis 10 years ago, New York Times reports. The loophole exempts banks from reporting certain offshore derivitives holdings.
Scott Kohn, a 64-year old felon, ran a company from a Nevada strip-mall mailbox that investors claim took them for more than $100 million in losses. WSJ reports Mr. Kohn’s company, Future Income Payments, appears shut and his investors are likely to be wiped out. Lawyers plan to sue scores of firms that sold Future Income products as soon as this week.
UBS Group AG was censured by a U.S. regulator for “systemic deficiencies” in its anti-money laundering systems, WSJ reports. The bank could face fines in the future if it doesn’t address problems the regulator perceives. Still, the order is a black eye for the Swiss banking giant, which like other big Swiss banks has turned its focus to managing wealthy clients’ money in recent years.
TCF National Bank agreed to pay $30 million to settle civil claims with banking regulators over its sales practices for account overdraft services, WSJ reports. The regulators alleged the bank designed its account application process to obscure overdraft fees and make the service appear to be mandatory. Federal rules require banks to get customer consent before enrolling them into such programs.
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Papa John's International Inc. board members are planning to discuss and possibly vote on whether to adopt a “poison pill” to prevent its controversial founder from gaining a controlling interest in the pizza chain, WSJ reports, citing people familiar with the matter. The board in recent weeks has been trying to sever ties with John Schnatter following revelations he used a racial slur during a recent conference call. Mr. Schnatter owns 29% of Papa John’s shares and indicated he won’t cede control of the company without a fight.
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Hackers stole the personal health records of Singapore Prime Minister Lee Hsien Loong and 1.5 million others in an unprecedented data breach, WSJ reports. The hack casts light on the risks facing cities as they begin centralizing data to provide smoother government services.
Facebook Inc. suspended another company that harvested data from its site and said it was investigating whether the analytics firm’s contracts with the U.S. government and a Russian nonprofit tied to the Kremlin violate the platform’s policies. Crimson Hexagon, based in Boston, has had contracts in recent years to analyze public Facebook data for those and other clients, WSJ reports.
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Parents in China are demanding the government take action after a pharmaceutical company may have provided faulty vaccines to hundreds of thousands of children. New York Times reports the government found the drug manufacturer violated standards when producing the vaccines.
Hollywood’s longstanding say-anything, do-anything culture is rapidly turning into one where the wrong words can have career-killing consequences, WSJ reports. In Hollywood, the #MeToo movement marked a dramatic turn from the longstanding practice of considering the bad behavior of executives and talent to be a cost of doing business. Now, the corporatization of the entertainment industry combined with online activism and a new generation of workers not afraid to push back is leading to far less tolerance of misconduct.
Walt Disney Co. severed its relationship with James Gunn, who previously directed two “Guardians of the Galaxy” movies for its Marvel Studios unit that together grossed $1.64 billion. The move came after The Daily Caller website and online critics resurfaced tweets written between 2008 and 2012 by Mr. Gunn in which he made sexually explicit jokes.
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Meat is piling up in U.S. cold-storage warehouses, fueled by a surge in supplies and trade disputes that are eroding demand, WSJ reports. Federal data are expected to show a record level of beef, pork, poultry and turkey being stockpiled in U.S. facilities, rising above 2.5 billion pounds, agricultural analysts said.
Finance ministers attending the Group of 20 meeting in Argentina failed to report any breakthroughs Sunday during talks to de-escaltate trade tensions, New York Tmies reports. The ministers said threats of new U.S. tariffs are endangering global economic growth.
Pakistan’s first metro, the Orange Line, was meant to be an early triumph in China’s quest to supplant U.S. influence here and redraw the world’s geopolitical map. Instead, WSJ reports it has become emblematic of the troubles that are throwing China’s modern-day Silk Road initiative off course. Three years into China’s program here, Pakistan is heading for a debt crisis, caused in part by a surge in Chinese loans and imports for projects like the Orange Line, which Pakistani officials say will require public subsidies to operate.
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The Orange Line train completes its a test run in May 2018 in Lahore, Pakistan. PHOTO: Rana Sajid Hussain/Zuma Press
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Tesla Inc. has asked some suppliers to refund a portion of what the electric-car company has spent previously, an appeal that reflects the auto maker’s urgency to sustain operations during a critical production period. The Silicon Valley electric-car company said it is asking its suppliers for cash back to help it become profitable, according to a memo reviewed by WSJ.
Delays caused by tougher emissions testing are creating bottlenecks for Volkswagen SA, prompting the company to rent garage space to hold the backlog, Reuters reports.
The maker of Ritz crackers issued a voluntary recall for some products because an ingredient may be tainted with salmonella bacteria, Reuters reports. Mondelez International Inc. said it's had no report of illnesses but still chose to recall the Ritz Cracker sandwiches and Ritz Bitz products as a matter of precaution.
Federal officials probing the fatal sinking of an amphibious tour boat in Missouri said they are focusing on how the operator used information from a private weather service to proceed with an evening cruise last week that encountered near-hurricane-force winds, WSJ reports. The boat sank Thursday in Table Rock Lake near Branson, Mo., killing 17 people.
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IKEA built a global empire selling affordable furniture that people assembled themselves. For its first store in India, the Swedish retailer is upending its business model, WSJ reports. The India store, set to open next month, will feature IKEA’s first in-house furniture-assembly team, with 150 full-time employees.
Traditional plane deals grabbed headlines at the Farnborough International Airshow this past week. But WSJ reports a handful of futuristic air-travel concepts signaled a new excitement coursing through the industry. Global aerospace companies are grappling with new technology from self-flying planes to electrically-powered aerial taxis, perhaps the industry’s biggest tech surge since the dawn of the jet age in the late 1950s.
Publishers of comic books are turning to digital media in an effort to revive flagging sales, New York Times reports. Waning interest and increased competition from digital entertainment is prompting publishers to find ways to engage more directly with their fans.
China’s campaign to become a global power in advanced manufacturing is playing out at a high-tech factory in Sichuan province, where engineers are aiming to supply display screens for Apple Inc.’s top-tier iPhones, WSJ reports. If it succeeds, BOE Technology Group Co. will not only prove its manufacturing prowess with a technically challenging product, but also will score a big win for China in its race to catch up to South Korea and Japan in advanced display-screen manufacturing.
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Mike Manley was named chief executive of Fiat Chrysler Automobiles NV after the company announced CEO Sergio Marchionne wouldn't be returning because of serious health complications following surgey, AP reports. Mr. Marchionne previously said he would step down early in 2019; Mr. Manley was head of the company's Jeep brand.
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Fiat and Chrysler Chief Executive Sergio Marchionne, seen here in a May 2014 press conference, is stepping down from his job because of health issues. PHOTO: Rena Laverty/EPA-EFE/Shutterstock
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Follow the WSJ Risk & Compliance Team on Twitter: @WSJRisk, @srubenfeld, @BenDiPietro1 and @LikelyMara.
Send complaints, comments and kudos to Ben DiPietro at ben.dipietro@wsj.com.
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