Connect with us

Facebook’s Reckoning with Shareholders is Nigh

Published

on

As of the end of March, stock in Facebook has declined over 13% since news broke that the social media giant shared millions of users’ data without their consent with Trump-affiliated consulting firm Cambridge Analytica, a debacle that has cost the company nearly US$ 100 billion in market value, and shareholders are not happy about it. On top of the deluge in public criticism, summons from U.S. Congress, an investigation by the Federal Trade Commission (FTC) that could potentially carry hundreds of millions in penalties, and the leaking of a damning internal memo from 2016 that highlights Facebook leadership’s obsession with growth over all else, Zuckerberg et al. now face a growing number of shareholders and users who are suing the social media company for breaches of securities and privacy laws.

Over the past several weeks, 15 class action lawsuits have been brought against Facebook in U.S. federal courts related to its data-sharing practices, the majority of which have been filed in the Northern District of California. One of these lawsuits, filed by securities litigation firm Robbins Geller on behalf of purchasers of Facebook common stock, alleges that Zuckerberg and his lieutenants violated securities law and its own terms of use numerous times by misleading shareholders regarding the company’s sharing of users’ data without proper disclosures or permissions, actions that resulted in the price of Facebook’s stock being artificially inflated to a high of US$ 193 per share prior to February’s bombshell reports.

“This is a paradigmatic example of alleged securities fraud. Unfortunately, this breach of trust has consequences that extend beyond significant declines in shareholder value – it appears to have adversely impacted the integrity of our electoral process,” said Darren Robbins, a partner at the San Diego based law firm representing plaintiffs in the case. Beyond recouping financial losses, Robbins told SWFI that he hopes the case – and others like it – will prompt governmental and regulatory agencies to take a closer look at companies like Facebook that make their bread and butter at the expense of unwitting users’ privacy.

As of December 31, 2017, the 10 largest state-owned institutional investors in Facebook are Norges Bank Investment Management (0.92%), the Canada Pension Plan Investment Board (CPPIB, 0.29%), the New York State Common Retirement Fund (0.28%), the California State Teachers’ Retirement System (CalSTRS, 0.28%), the New York State Teachers’ Retirement System (0.17%) the State Board of Administration of Florida (0.14%), State of Wisconsin Investment Board (0.12%), Ohio State Teachers’ Retirement System (0.09%), the Korea Investment Corporation (KIC, 0.09%) and Korea’s National Pension Service (NPS, 0.08%).

Investors who purchased Facebook common stock between July 6, 2017 and March 23, 2018, and who wish to serve as a lead plaintiff in the Robbins Geller class action suit – captioned Bennett v. Facebook, Inc., et al., No. 18-cv-01868 -must move the court no later than 60 days from March 20, 2018.

Funds and Ownership, KKR Partners with Shinhan Financial

Published

on

South Korean financial giant Shinhan Financial Group Co., Ltd. reached a preliminary agreement with KKR & Co. to form a series of global buyout funds that could raise up to 5 trillion KRW. KKR and Shinhan signed a Memorandum of Understanding (MoU) in Seoul in early October. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Norwegian Government Recommends SWF Remains at Central Bank

Published

on

There was speculation that Norway Government Pension Fund Global (GPFG) could be managed outside of Norges Bank. The Norwegian government shot down this idea and recommended Norway’s GPFG remain in Norges Bank. This recommendation came in the form of a white paper submitted to the Norwegian Parliament, Stortinget.

Norway’s Minister of Finance Siv Jensen, commented in a press release, “The Government proposes a new and modernised governance structure for Norges Bank. Moving forward, this new structure lays the foundations for the sound management of the central bank and of the GPFG.”

Some Central Bank Recommendations

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Invesco Buys OppenheimerFunds for $5.7 Billion

Published

on

Invesco Ltd. signed a deal to acquire OppenheimerFunds, Inc. from Massachusetts Mutual Life Insurance Company (MassMutual). In turn, MassMutual and the OppenheimerFunds employee shareholders will receive a combination of common and preferred equity consideration, and MassMutual will become a significant shareholder in Invesco, with an approximate 15.5% stake. This strategic transaction will bring Invesco’s total assets under management (AUM) to more than US$ 1.2 trillion. The transaction is expected to close in the second quarter of 2019, pending necessary regulatory and other third-party approvals. The transaction gives Invesco access to more third-party distribution platforms.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.