Trust Digest 160 (October 11, 2016)
Major Investor Sues Theranos
One of Theranos Inc.’s biggest financial backers has sued the embattled startup and its founder for allegedly lying to attract its nearly $100 million investment, according to a fund document and people familiar with the matter.
Key Words: Theranos, lawsuit, investor
Trust Issues: Transparency, Honesty
Insulin Prices Soar While Drugmakers’ Share Stays Flat
Insulin prices are soaring, creating pain for patients whose lives depend on the injectable drug- yet most of the revenue from the increases isn’t going to the drug manufacturers. It is largely the middlemen that benefit.
Key Words: Health-care middlemen, insulin prices
Trust Issues: Conflict of Interests, Capability, Integrity
St. Jude warns of heart-device battery issue linked to two deaths
St. Jude Medical Inc warned on Tuesday that some of its implanted heart devices were at risk of premature battery depletion, a condition it said had been linked to two deaths. News of the issue surfaced late on Monday when short-selling firm Muddy Waters tweeted a copy of a physician advisory on the matter from St. Jude, which agreed in April to sell itself for $25 billion to Abbott Laboratories.
Key Words: St. Jude, heart-device
Trust Issues: Benevolent Concern, Capability, Risk Tolerance
Mylan to Pay $465 Million to Settle Medicaid Claims
Mylan NV agreed to pay $465 million to settle allegations that it overcharged the government for its EpiPen products, the latest move by the embattled pharmaceuticals firm to quell the furor over its pricing practices.
Key Words: Mylan, EpiPen
Trust Issues: Adjustment, Conflict of Interests
Wells Fargo Lays Out Strategy to Move Past Scandal
Wells Fargo & Co.’s top brass laid out the bank’s strategy to move past its sales-tactics scandal on an hour-long call Monday with 500 senior executives, according to a recording of the call reviewed by The Wall Street Journal.
Key Words: Wells Fargo, sales-tactics scandal
Trust Issues: Honesty, Integrity, Situational Adjustment
US, Europe fray each other’s nerves with company crackdowns
The U.S. is looking for multi-billion dollar penalties from Germany’s biggest bank and its biggest carmaker. The European Union is demanding similarly large sums from America’s most valuable tech company, Apple.
Key Words: EU, US, company crackdowns
Trust Issues: Transparency, Conflict of Interests
Note 7 fiasco could burn a $17 billion hole in Samsung accounts
Samsung announced the recall of 2.5 million Note 7s in early September following numerous reports of the phones catching fire and on Tuesday the crisis deepened: The company told mobile carriers to stop sales or exchange of the $882 device and asked users to shut off their phones while it investigated new reports of fires in replacement Note 7s.
Key Words: Samsung, recall
Trust Issues: Situational Adjustment, Capability
Belgian regions set to block EU-Canada free trade deal
Southern Belgium is set to block a planned EU-Canada free trade agreement, threatening to undermine the EU's entire trade policy and serving as a warning to British hopes of a speedy deal after Britain has left the European Union.
Key Words: EU-Canada, Belgian regions
Trust Issues: Situational Adjustment, Transparency