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Paxton's Fraud Shock, Swipe Fee Antitrust Settled, Canada Goose Layoffs
Just reporting the facts.
Centrist Chronicle
April 01, 2024
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Texas Attorney General Ken Paxton, a Republican, finalized an agreement with legal authorities on Tuesday to settle accusations of securities fraud, concluding a protracted legal battle just before his anticipated trial. Despite the settlement, Paxton continues to assert he did nothing wrong.
The allegations, dating back to 2011 when Paxton served as a state representative, involve his recruitment of two investors into the Texas-based tech firm Servergy, Inc., without revealing his compensated advisory position in the company. The CEO of Servergy was later convicted for deceiving investors, falsely claiming that the company had secured a major deal with Amazon. Under the terms of the recent settlement, Paxton has consented to reimburse $271,000 to the aggrieved investors, perform 100 hours of community service, and attend legal education courses. Initially, Paxton risked a sentence of up to 99 years and the potential forfeiture of his attorney's license.
It's important to note that these securities fraud charges are distinct from a separate FBI inquiry examining allegations that Paxton misused his office to benefit real estate developer Nate Paul. Despite facing impeachment on connected accusations, Paxton was exonerated by the Texas Senate last year.
Visa and Mastercard reached a significant agreement with American merchants this Tuesday, aiming to conclude almost two decades of legal disputes concerning the transaction fees levied whenever a customer uses a credit or debit card at a retail outlet or dining establishment.
Under the terms of this settlement, the fees imposed by Visa and Mastercard would be reduced and capped, granting small businesses the opportunity to negotiate fee rates collectively with these payment giants, a privilege that has been typically reserved for larger merchants.
Representatives from retail associations, representing both large and small businesses, have acknowledged this settlement as a step forward. However, they emphasize that additional actions are necessary to address the broader issues surrounding swipe fees comprehensively. They pointed out that the agreed reduction in fees is temporary, lasting between three to five years, after which they are set to revert to their original rates.
Canada Goose is navigating challenging times. The renowned outerwear brand announced it is cutting approximately 17% of its corporate workforce as a component of its so-called "transformation program," according to a statement released on Tuesday. The company anticipates that these layoffs will result in immediate cost reductions.
The exact number of affected positions remains unspecified. When approached by Quartz for details, a company representative disclosed only that the cutbacks would impact 17% of its global corporate positions, without providing specific figures. According to Bloomberg's data from April 2023, Canada Goose employed around 4,760 individuals.