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The Morning Risk Report: Justice Doubles Down on Self-Reporting Programs Amid Decline in Cases
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Good morning. To battle what appears to be a decline in cases, the Justice Department is doubling down on a familiar strategy: Offering incentives to companies to self-report misconduct.
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Will it work? Risk & Compliance Journal’s Dylan Tokar took a closer look at some of the changes to the department’s corporate enforcement policies announced by Deputy Attorney General Lisa Monaco last month.
Despite the breadth of the revisions, lawyers said the changes aren’t a radical departure from the approach already favored by prosecutors. “The policy changes are more evolution than revolution,” said Steven Fagell, co-chair of law firm Covington & Burling LLP’s white-collar defense practice.
Many lawyers are doubtful the Justice Department’s latest push will cause more companies to disclose misconduct. Instead, the decision to self-report will continue to depend on the circumstances each company faces.
“Until there is more enforcement activity—and tangible enforcement activity—it’s not clear to me that companies are going to change their risk-benefit analysis,” said Julian André, a partner at McDermott Will & Emery LLP who specializes in litigation and government investigations.
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Content from our Sponsor: DELOITTE
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What’s in Your Toolkit to Whip Inflation?
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CFOs can turn to an array of strategic actions and trade-offs to counter the margin-shrinking impacts of inflation on business operations. Read More ›
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WSJ Risk & Compliance Forum
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Sign up for the next WSJ Risk & Compliance Forum on Nov. 16 for discussions on the critical issues facing corporate risk & compliance professionals, including keeping up with sanctions, screening for forced labor, and proposed U.S. rules on climate change and cybersecurity. Register here.
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One case alleges that Google’s YouTube aided ISIS by recommending the terrorist group’s videos to users. PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS
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The Supreme Court has agreed to decide whether social-media platforms can be held liable for terrorist propaganda uploaded by users, opening a new challenge to the broad legal immunity provided to internet companies by the law known as Section 230.
The court on Monday took up a set of cases in which families of terrorism victims allege Twitter, Facebook and YouTube bear some responsibility for attacks by Islamic State, based on content posted on those sites.
Section 230 of the Communications Decency Act has come under intense scrutiny from lawmakers in recent years, but this is the first time the Supreme Court has moved to weigh in on the foundational internet law.
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Kim Kardashian will pay $1.26 million to settle regulatory allegations that she failed to disclose money she was paid for promoting a cryptocurrency to investors, the Securities and Exchange Commission said, the latest celebrity to face punishment over their crypto dealings.
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The enforcement action shows how celebrities have benefited from crypto’s rise as an asset class targeted at individual investors—and how regulators want to make examples of famous people who they claim have flouted investor-protection laws to profit. Ms. Kardashian was paid $250,000 to hype EMAX tokens on her Instagram account, the SEC said.
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The potential for Republicans to win majorities in one or both chambers of Congress next month is putting pressure on the Biden administration to conclude a long-anticipated national security agreement with Chinese-owned video app TikTok.
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Theranos Inc. founder Elizabeth Holmes is due back in court this month to make the case that she deserves a new trial based on her allegations that the government manipulated testimony from a key witness who testified against her.
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The Supreme Court has declined to hear a bid by Mike Lindell, the chief executive of MyPillow Inc., to escape a defamation lawsuit over his unfounded claims that voting machines rigged the 2020 presidential election.
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Former President Donald Trump filed a defamation lawsuit Monday against CNN, accusing the network of engaging in a smear campaign against him in the lead-up to the 2024 presidential race.
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The Financial Stability Oversight Council, led by Treasury Secretary Janet Yellen, highlighted potential systemic risks of cryptocurrencies. PHOTO: ELIZABETH FRANTZ FOR THE WALL STREET JOURNAL
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Risks tied to cryptocurrencies could grow rapidly and eventually threaten the broader financial system, a panel of senior U.S. officials warned Monday, calling for tougher oversight of digital assets.
The Financial Stability Oversight Council, chaired by Treasury Secretary Janet Yellen, said the crypto industry remains small compared with the overall financial system, but that could change quickly and exacerbate potential systemic risks.
Monday’s report is the latest response to a March executive order from President Biden, which called a number of federal agencies to evaluate the risks and opportunities posed by cryptocurrencies.
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Ukrainian forces broke through Russian lines and made new advances in the southern Kherson region, while expanding their rapid offensive in the eastern part of the country, retaking areas that Moscow now claims to be part of Russia.
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The U.K. government backtracked on a key part of its broad tax-cut plan after facing a backlash from financial markets and a rebellion in its own ranks, sending the pound higher on Monday but marking a major setback for new Prime Minister Liz Truss and her economic agenda.
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Five days after Hurricane Ian ripped its way across Florida to the Carolinas, the scale of its destruction is still coming into full focus.
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Despite some signs of easing inflation, underlying price pressures have too much momentum and will likely require a period of higher interest rates, a top Federal Reserve official said Monday.
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After Iranian security forces clashed with students at a prominent university in Tehran, Supreme Leader Ali Khamenei on Monday defended the police for their crackdown on protests that have swept across the country and blamed the U.S. and Israel for inciting the unrest.
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North Korea flew a missile over Japan for the first time since 2017, Seoul and Tokyo officials said, a significant escalation that led to Japan issuing warnings for citizens to take shelter.
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Prosus Chief Executive Bob van Dijk, whose company has abandoned a plan to acquire India’s BillDesk. PHOTO: CHRIS RATCLIFFE/BLOOMBERG NEWS
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European technology company Prosus NV said Monday it was walking away from its roughly $4.2 billion acquisition of Indian payments platform BillDesk, the latest tech takeover to collapse amid the market selloff.
The acquisition of BillDesk would have been the largest-ever takeover for Amsterdam-listed Prosus, which is majority owned by South African holding company Naspers Ltd.
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Nvidia says its employees in Russia would be given the option of continuing their jobs in other countries. PHOTO: NVIDIA CORP/REUTERS
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Nvidia Corp. moved to cease operations and close its offices in Russia, saying it could no longer operate effectively in the country because of recent events related to the invasion in Ukraine.
The chip maker stopped selling to Russia in early March as the U.S. government rolled out sweeping sanctions on Moscow. Russia has historically represented about 2% of the company’s revenue, financial chief Colette Kress said in May.
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Credit Suisse Group AG came under renewed pressure over its financial health after the value of its riskiest bonds sank and the cost to insure against default rose sharply.
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Google discontinued its Google Translate service in mainland China citing low usage, marking another retreat by the U.S. tech giant from the country.
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Airlines in need of more pilots and spare parts are increasingly facing another shortage: new jets.
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London Heathrow Airport has told airlines it will lift a cap on passenger numbers at its terminals later this month, according to people familiar with the decision, ending one of the most extraordinary measures the aviation industry put in place this summer to deal with a surge in travel and a shortage of workers.
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