This lawsuit blames WorldCom of unfairly exploiting the telecoms regulations at the expense of its competitors. Detailed Analysis: The WorldCom case has become a kind of typical case of corporate governance failures. The world’s second largest telecommunications company WorldCom after the disclosure of massive accounting irregularities, filed for bankruptcy in the federal court in Manhattan in 2002. It provides a genuine case study in the failure of corporate governance and suggests a number of lessons in how to avoid its repetition. The fraud within WorldCom consisted of a number of so called “topside adjustments” to accounting entries to falsify declining earnings.
The trial and subsequent conviction of Martha Stewart on March 6, 2004, was as a result of insider trading and her attempt to cover it up. On December 27, 2001, she received a call from her stock broker’s assistant in regards to 3,928 shares that she owned in a bio pharmaceutical company called ImClone systems. She was informed that the co-founder Sam Waksal and family were selling all of their shares which prompted her to sell hers also. ImClone’s resources had been allocated for a decade into the development of a colon cancer drug named Erbitux. After executives received word from a source within the FDA that it wouldn’t be approved, knowing that once this info was made public the stock price would drop, Waskal decided to sell.
Nixon didn’t want to turn the tapes over so he said he didn’t have to because of ‘executive privilege’. This caused the Supreme Court to question executive privilege. They wanted to know if executive privilege is immune to subpoenas or immune to giving up evidence in criminal
The BP CSR and Crisis History: Before to the Deepwater Horizon drilling rig explosion, BP encountered numerous disasters and scandals and have a track record of ignoring saftey. The first accident which happened in December 1965, where the BP oil rig Sea Gem while it was being moved and it cost the death of thirteen human lives. Next, on March 23, 2005, BP’s refinery exploded, caught fire in Texas City and 15 workers has died. Later BP was under the lawsuits from the victim’s families and charged with criminal violations of federal environmental laws. One year later, an oil spill in Alaska caused pipeline to corrode badly.
Geologist Alexander Wright an archeologist died in September 2008 when a 12.6ft (3.8 meters) deep unsupported trial pit that he was working in alone caved in at a development site in Brimscombe Lane, near Stroud, Gloucestershire. The Judge in this case Mr. Justice Field stated that the company had committed a severe felony by grossly breaching its duty towards Mr. Wright. He further stated that the organization, which was depicted in court as in a parlous budgetary state, could pay the fine in 10 years at a rate of £38,500 per annum. He clarified that the fine denoted the gravity of the offense and the obstacle impact it would have on organizations to unequivocally comply to health and safety rules. Moreover he stated that because this company was operating on a small sector a larger fine would have made the company insolvent and it could ultimately lead to the redundancy of the four people presently working in the company.
Wells Fargo executives were notable mainly in their inertia although there existed years of evidence that a policy coming from the top level was driving abusive/illegal practices & irregularities at the Bank. In 2013, when the Los Angeles Times reported that fake accounts were opened by the employees to fulfill unrealistic sales objectives; and in 2016 (September), when the Bank admitted that its employees has created more than 2 million phony accounts and then agreed to pay a fine of $185 million, none of the senior executives went into an action. They decided to take back some of CEO Stumpf’s compensation only after he was reprehended in congressional hearings. Still, they never fired him - he resigned on his own.3 Wells Fargo board acted as if it were asleep in the early fall and had been too trusting of management. Corporate boards are failing at their job of overseeing management.
This theory creates controversy in business ethics in case of this corporation’s obligations to society. It could be said that Exxon was following their own self-interest by stopping more spilling but they had no obligation to repay people in society. Only an obligation to let shareholders know how this oil spill would affect profits. It was a good strategy to let people who depended on the water know about the spill but they had no obligation to pay environmental groups or any other groups that filed a complaint. Just as long as they took responsibility for letting it happen and breaking a few laws.
2.2 Damages His activities had generated losses totalling 827 million clams, twice the bank's available trading capital. The collapse cost another 100 million clams. Employees around the world did not receive their bonuses. Middle Earth Bank was declared insolvent on 21 April 2000, and appointed administrators began managing the finances of Middle Earth Bank Group and its subsidiaries. Another bank purchased Middle Earth Bank in 2000 for the nominal sum of 1 clam and incorporated is into itself, assuming all of Middle Earth Bank’s liabilities.
Ebbers leadership style changed from ethical to unethical during the downturn of the stock market and the effects it had on WorldCom shares. Ebber leadership style created an environment that left for little room for error. During telecommunications stock downturns Ebber was unable to come up with a strategy that would turn things around. During the initial phases of the Commission investigation into WorldCom’s accounting practices, Ebber was questioned concerning several low-interest loans he acquired from the board of directors. Shortly after Ebber was forced out by outside board members.
In June 1984, the annual accounts, which were done with the help of the accountant Dickman, were issued to the shareholders, which now included Caparo. Caparo reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. Once it had control, Caparo found that Fidelity's accounts were in an even worse state than had been revealed by the directors or the auditors. Caparo sued Dickman for negligence in preparing the accounts and sought to recover its losses by determining the difference in value between the company as it had and what it would have had if the accounts had been