Editor’s Note: This is the Paw Print Rewind, a daily recap of the top news headlines.
Greenberg will appeal bailout ruling
Former AIG CEO Maurice “Hank” Greenberg will appeal Washington D.C.’s Court of Federal Claims judge Thomas Wheeler that awarded him and other shareholders no damages over the company’s 2008 bailout, according to his company Starr International.
Toyota expands Takata U.S. air bag recalls by 1.37 million vehicles
Toyota will recall almost 1.37 million more vehicles in the United States due to potentially deadly front passenger-side airbags made by Japan’s Takata, according to Toyota.
The expansion pushes the total number of Toyota vehicles recalled in the United States because of dangers posed by Takata’s airbags to over 2.9 million.
Seen deaths linked to Takata air bags have occurred in Honda cars, six of them were in the United States.
There have been 24 incidents of incorrect deployments of Takata airbags in Toyota vehicles worldwide, and the automaker has received at least eight reports of airbag rupture-linked injuries, according to a Toyota spokeswoman.
The company isn’t aware of any injuries or fatalities caused by incorrect airbag deployments in the vehicles mentioned in the expanded recall.
Adobe reports better profits; lower forecasts
Adobe Systems, maker of the Creative Cloud suite of professional apps, has reported rising profits for the sixth straight quarter, helped by a 12 percent sequential jump in annualized recurring revenue in its digital media segment.
“I think some people would like to see not just a conservative [forecast] and beating that, but maybe perhaps even stronger results as the benefits of this multi-year transition start to show up.”
-Samad Samana, FBR Capital Markets analyst
The company is switching from traditional boxed licenses to digital subscriptions for the Creative Cloud suite for more predictable recurring revenue. Online subscriptions let customers access the latest versions of its apps for a monthly fee.
Adobe expects revenue in its print and publishing business to be relatively flat in this quarter.
The San Jose, CA-based company’s net income rose to $147.5 million ($0.29 per share) in the quarter that ended May 29, compared to $88.5 million ($0.17 a share) a year earlier.
Excluding items, Adobe earned $0.48 per share.
Total revenue rose 8.8 percent to $1.16 billion.
Constellation Brands investing over $2B in Mexico beer plant expansion
Constellation Brands, maker of alcoholic beverages, is in the process of investing over $2 billion in its Mexican operations.
The money will be spent on expanding the company’s bottling and brewery plant in the northern state of Coahuila, according to Constellation CEO Robert Sands.
The Victor, NY-based company has an agreement to sell Grupo Modelo’s beers, which include Corona and Modelo Especial.
“Constellation Brands is investing because we believe that premium Mexican beer will keep growing and will keep leading this segment of the U.S. beer market for years to come.”
-Robert Sands, Constellation Brands CEO
Suleyman Demirel dead at 90: hospital
Suleyman Demirel, the former Turkish president that was toppled by the military twice during his seven terms as president, has died at the age of 90, according to Demirel’s doctor Aylin Cesur.
Demirel, who served as prime minister seven times from the 1960s-1990s and was president from 1993-2000, died at Ankara’s Guven Hospital, where he was undergoing treatment for a respiratory tract infection, according to Cesur.
“Mr. Demirel, who was conscious until his very last moment, has said goodbye in a peaceful and proud way.”
-Aylin Cesur, Suleyman Demirel’s doctor
“The progress that Turkey’s industry and development and its development and its democracy has made is thanks to Demirel’s patriotism and bravery.”
-Esat Kiratlioglu, former minister in one of Demirel’s cabinets
“Suleyman Demirel, who has contributed greatly to the development process of our country and has left deep marks in Turkey’s politics is one of the most important figures of our political history.”
-Tayyip Erdokgan, Turkey president
“[Demirel] was a unique politician who will always be remembered by the services he has given to our country throughout his long political career.”
-Ahmet Davutoglu, Turkey prime minister
GlaxoSmithKline invests $95M to demystify cell ‘operating system’
GlaxoSmithKline (GSK) is investing $95 million to create the Altius Institute of Biomedical Sciences in Seattle led by University of Washington School of Medicine associate professor of genome sciences and medicine John Stamatoyannopoulos to investigate how a cell’s operating system works.
The London-based drugmaker has retained first rights to the institute’s inventions and will be able to invest in the commercialization of its discoveries through spinoff companies.
The Altius Institute of Biomedical Sciences should be operational before the end of the year.
Jimmy Lee dead at 62
Jimmy Lee, one of JPMorgan Chase’s dealmakers, has died at the age of 62, according to company CEO Jamie Dimon.
“He was street smart, savvy, never overplayed his hand, but he’d push it.”
-Dan Akerson, private equity firm Carlyle Group’s vice chairman, former GM CEO
“Jimmy was a master of his craft, but he was so much more – he was an incomparable force of nature.”
-Jamie Dimon, JPMorgan Chase CEO
“We were quite close [in the early 2000s] to a deal [to hire away Lee], but he’s been extremely loyal to JPMorgan over the years.”
-Steve Schwarzman, Blackstone chairman and CEO
AT&T faces $100M fine over throttling
AT&T is facing a $100 million fine, according to the Federal Communications Commission (FCC), who is accusing the United States’ second-largest wireless carrier of misleading customers who paid for unlimited data plans about possible download speed slowdowns.
AT&T inadequately informed customers about notable speed reductions in speeds if they exceed a particular data amount during their data cycle, according to the FCC, in a practice known as throttling.
“Unlimited means unlimited. The commission is committed to holding accountable those broadband providers who fail to be fully transparent about data limits.”
-Travis LeBlanc, FCC enforcement bureau chief
The Dallas-based company has 30 days to respond to the charges, which will then be reviewed by the five member commission. The proposed maximum fine was approved on a 3-2 party line vote in favor of the Democrats.
“We will vigorously dispute the FCC’s assertions.”
-An AT&T spokesperson
The FCC has previously deemed the practice as a legitimate and reasonable way to manage its network, according to AT&T, and that the company has been “fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC’s disclosure requirements.”
The company has disclosed its slowdown practices to customers through bill statement notifications and text messages, among other means, according to the FCC.
Californian Uber driver is employee, not contractor: ruling
Barbara Ann Berwick, who drives for Uber, is an employee, not a contractor, according to a California Labor Commission ruling.
The June 3 ruling, which only applies in California, came to light after the San Francisco-based company appealed it in a filing in a San Francisco state court, where the driver is based.
Officials in five other states have called their drivers independent contractors, according to an Uber statement.
“The number one reason drivers choose to use Uber is because they have complete flexibility and control. The majority of them can and do choose to earn their living from multiple sources, including other ride sharing companies.”
-Uber, in a statement
However, Uber controls the tools used by drivers, monitors their approval ratings, and terminates their system access if their ratings fall below 4.6 stars, according to the commission.
“Assuming it’s upheld on appeal, it may be more than influential. It will be controlling in California.”
-Thomas Wassel, Cullen and Dykman partner
The commission issued its ruling on a claim filed in September by Berwick, who was awarded about $4,000 in expenses by the commission.
Canadian government websites taken offline in cyberattack
Several of Canada’s government websites were taken down in a cyberattack, according to the government, with the Anonymous hacking group taking responsibility in retaliation for a new anti-terrorism law passed by the country’s lawmakers, according to the group.
The country’s general government services website, Canada.ca, as well as the Canadian Security Intelligence Service (CSIS) were among those affected.
The attack also affected email, Internet access, and IT assets, according to the government.
The anti-terrorism law passed by the Canadian Senate violates human rights and targeted people who disagree with the government, according to an Anonymous YouTube video.