Day: July 14, 2020

Effissimo tells Toshiba that shareholders make good directors

FILE PHOTO: The logo of Toshiba Corp is seen as window cleaners work on the company’s headquarters in Tokyo, Japan, February 14, 2017. REUTERS/Toru Hanai

BOSTON (Reuters) – Effissimo Capital Management, which wants to install three directors on Toshiba Corp’s board, told the Japanese conglomerate’s directors that shareholders make good board members because they are invested in the company’s future.

“A major shareholder is incentivized to exercise judgments to maximize interest for the company,” Effissimo, which owns 15% of Toshiba, wrote in a letter to the directors that was seen by Reuters. “A major shareholder is in a superior position to tackle the ‘collective action problem,’” it said in the letter, which was dated July 13.

Effissimo, which is Toshiba’s top shareholder, is pushing back privately at Toshiba’s public message that shareholders should be disqualified from sitting on boards because they would be riddled with conflicts of interest. The standoff

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Massachusetts sues Uber, Lyft over driver status as contractors

(Reuters) – Massachusetts on Tuesday followed California in suing Uber Technologies Inc and Lyft Inc over allegedly misclassifying their drivers as independent contractors instead of employees entitled to extensive benefits.

FILE PHOTO: A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, U.S., May 13, 2020. REUTERS/Mike Blake

The complaint filed in Suffolk Superior Court claims Uber and Lyft violate state minimum wage, hour and sick time laws.

“Uber and Lyft have built their billion-dollar businesses while denying their drivers basic employee protections and benefits for years,” Massachusetts Attorney General Maura Healey said in a statement.

Uber and Lyft argue that the vast majority of their drivers enjoy the flexibility that comes with on-demand work, and a recent analysis by Cornell University of Seattle driver data supplied by the companies showed that some 75% of drivers work fewer than 20

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Google faces lawsuit over tracking in apps even when users opted out

FILE PHOTO: Google Chrome logo is seen near cyber code and words “spy” in this illustration picture taken June 18, 2020. REUTERS/Dado Ruvic/Illustration

OAKLAND, Calif. (Reuters) – Alphabet Inc’s (GOOGL.O) Google records what people are doing on hundreds of thousands of mobile apps even when they follow the company’s recommended settings for stopping such monitoring, a lawsuit seeking class action status alleged on Tuesday.

The data privacy lawsuit is the second filed in as many months against Google by the law firm Boies Schiller Flexner on behalf a handful of individual consumers. The firm’s clients also have included Google competitors such as Facebook Inc (FB.O) and Oracle Corp (ORCL.N).

Google did not immediately respond to a request for comment on the filing.

The new complaint in a U.S. district court in San Jose accuses Google of violating federal wiretap law and California privacy law

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Virus worries and FOMO drive options bets on surging tech giants

NEW YORK (Reuters) – Options investors are ramping up bets on some of this year’s biggest winners, including Amazon.com Inc (AMZN.O), Netflix Inc (NFLX.O) and Tesla Inc (TSLA.O), even as they turn cautious on the wider market amid a resurgent U.S. coronavirus outbreak.

FILE PHOTO: A Tesla car is seen in Los Angeles, California, U.S., July 9, 2020. REUTERS/Lucy Nicholson

Investors are betting that tech-related stocks will remain comparatively resilient to the coronavirus-fueled economic disruptions that have battered sectors such as retail and travel, despite growing concerns about stretched valuations following steep rallies.

Analysts also see another factor driving the momentum stocks: fear of missing out, or FOMO.

The rocket-like rise of such stocks has driven year-to-date gains for the S&P 500 technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL sectors, though the broader S&P 500 .SPX benchmark index remains negative for the

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