Deloitte to Pay $21.5 Million to End DOJ Fraud Investigation Over DEI Policies

Deloitte has agreed to pay nearly $21.5 million to settle allegations that it defrauded the federal government by continuing to consider diversity when making hiring, promotion and staffing decisions.

It is the latest settlement stemming from investigations the Trump administration launched last year in a broad effort to root out diversity initiatives at major U.S. companies that contract with the federal government.

In a statement Tuesday, Associate Attorney General Stanley Woodward said the deal was another example of how the department was “eliminating woke, unconstitutional practices from American workplaces.”

“Merit drives opportunity and promotion. Not someone’s sex or race,” he said.

by WSJ

US audit regulator scraps investor advocate role as Trump-era revamp accelerates

The US audit watchdog is shutting down a division set up to advocate for shareholders in a move that underscores a switch of focus under Donald Trump’s administration.

The decision by the Public Company Accounting Oversight Board (PCAOB) disappointed investor advocates, who feared their views on audit regulation could be sidelined if the organisation prioritises the opinions of company directors and accounting firms. [...]

Staff were told on Monday that the office of the investor advocate would close by October, according to people familiar with the matter. The division was created in 2023 as the Biden administration moved to increase the influence of shareholders inside the organisation.

by FT

Coinbase CEO weighs California exit over ‘deeply un-American’ wealth tax

Coinbase CEO Brian Armstrong said he is considering exiting California over the state’s “deeply un-American” proposed wealth tax.

During a Tuesday evening appearance on “The Katie Miller Podcast,” Armstrong warned that tech founders are fleeing California over the state’s proposed first-of-its-kind billionaire tax – and hinted his firm, which operates its largest office in San Francisco, might be next in line.

“I think it’s deeply un-American to seize people’s assets. It might be unconstitutional,” said Armstrong, who is worth an estimated $8.8 billion, according to Forbes.

He argued that he has paid “tons of taxes” on his income and has no problem doing so – but that an extra tax on wealth and assets “starts to feel like a third-world country. That is a dangerous, dangerous path to go down.

“It’s against my values, I would say. I think it’s bad for the state and for America. So we’re considering any and all options basically at this point to be, in terms of relocation,” Armstrong said.

by NY Post

Securities Suit Against Alibaba Combines Two Key Litigation Trends

Two notable securities litigation trends over the past year have been the rise of AI-related lawsuits and claims stemming from geopolitical developments, particularly U.S.-China tensions. A securities class action complaint filed on August 4, 2026, in the Southern District of New York against Alibaba Group Holding Limited (Alibaba) and the company’s CEO combines both themes in a single action (Alibaba SCA). The complaint alleges that Alibaba misled investors concerning both its AI-related activities and the risks associated with its alleged status as a “Chinese military company” under U.S. law.

As discussed below, the lawsuit provides an interesting case study of the convergence of AI-related and geopolitical securities litigation, as well as potential implications for D&O underwriting.

by The D & O Diary