Business Headlines
Former FTX CEO Sam Bankman-Fried’s trial set to begin Tuesday
ABC News(NEW YORK) -- The trial of Sam Bankman-Fried, FTX founder and former crypto billionaire, is set to begin Tuesday with jury selection after federal prosecutors accused him of orchestrating one of the largest financial frauds in U.S. history. Jury selection is expected to take place Tuesday, and the trial could last as long as six weeks. Bankman-Fried faces seven counts of fraud, conspiracy and money laundering centered on his alleged use of customer deposits on the crypto trading platform FTX to cover losses at his hedge fund, Alameda Research, and to buy lavish real estate, among other personal expenses. He has pleaded not guilty to all counts. If convicted, he could face a sentence of up to 110 years ... Read More
Autoworkers strike has cost US economy nearly $4B, report says
Patrick T. Fallon/AFP via Getty Images(NEW YORK) -- An ongoing strike carried out by tens of thousands of autoworkers has cost the U.S. economy billions of dollars, denying workers their wages and cutting output at car companies, according to a study from a Michigan-based research firm that was reviewed by ABC News. Over its first two weeks, the strike cost workers $325 million in lost wages while imposing more than $1 billion in manufacturing declines at the Big 3 U.S. automakers – General Motors, Ford and Stellantis, which owns Jeep and Chrysler, the Anderson Economic Group found. Accounting for additional costs to suppliers, dealers and consumers, the strike caused a total of nearly $4 billion in economic losses over its ... Read More
SNAP benefits increase as eligibility requirements change through 2024
Noel Hendrickson/Getty Images(NEW YORK) -- Millions of Americans rely on the Supplemental Nutrition Assistance Program, or SNAP, for benefits to supplement their grocery budget to afford nutritious foods. As of Oct. 1, the program received a much-needed boost to help meet the increased cost of living and inflation. The program, overseen by the United States Department of Agriculture's Food and Nutrition Service arm in accordance with the Food and Nutrition Act of 2008, adjusted the maximum allotments starting this month for the year ahead, based on the Consumer Price Index from the Bureau of Labor Statistics for June 2022. Work eligibility requirements for the program, previously known as food stamps, were set to become more strict after President Joe Biden ... Read More
Gasoline prices in California are up 80 cents in a month. Here’s why.
Grace Cary/Getty Images(LOS ANGELES) -- Gasoline prices in California are skyrocketing. The average price of a gallon of gas in California on Friday reached $6.08, up some 80 cents or 15% since a month ago, according to data compiled by AAA. At some gas stations in Los Angeles, prices are hovering around $7.00 a gallon. In California, the average price for a gallon of gas is about 55% higher than the national average, AAA data shows. The eye-popping prices in the nation's most populous state owe to a surge in the cost of crude oil combined with output disruptions that have choked refinery capacity, industry analysts told ABC News. "The fuel delivery system in California is running right up against ... Read More
EEOC files federal lawsuit against Tesla, alleging discrimination, retaliation against Black employees
John Keeble/Getty Images(SAN FRANCISCO) -- The U.S. Equal Employment Opportunity Commission filed a federal lawsuit Thursday against Tesla, alleging the company engaged in racial harassment and discrimination. The complaint, which was filed in the U.S. District Court for the Northern District of California, comes following an EEOC investigation into Tesla’s treatment of Black employees. The lawsuit, which was obtained by ABC News, claims that since at least May 29, 2015, Tesla has violated Title VII of the Civil Rights Act of 1964 by subjecting Black employees at the company’s Fremont, California, manufacturing facilities to racial abuse, stereotyping, and hostility, including racial slurs. The lawsuit claims that Tesla violated federal law by “tolerating widespread and ongoing racial harassment of its Black ... Read More
UAW expected to announce new strike targets amid talks with General Motors, Ford, Stellantis
Scott Olson/Getty Images(DETROIT) -- A labor strike against the three largest motor vehicle manufacturers in the United States is expected to be expanded further on Friday amid ongoing contract negotiations. If no deal is reached overnight, United Auto Workers President Shawn Fain will deliver remarks at 10 a.m. ET announcing new targets to strike, which will begin at noon. A source close to the union spoke to ABC News on Thursday afternoon, describing the negotiations as being very active within the last 24 hours and having in-person, sit-down meetings with representatives from both sides, including Fain. The UAW, which represents nearly 150,000 American autoworkers, launched a strike against General Motors, Ford and Stellantis -- often called the "big three" -- ... Read More
Gen Z is burdened by student loan debt, and now many are facing payments for first time
jayk7/Getty Images(NEW YORK) -- In the first week of October, Kennedy Quintanilla will do something she has not had to do since graduating from college two years ago: make a student loan payment. "Reality is setting in," Quintanilla, a 2021 graduate of the University of Texas at Austin with over $26,000 in student loan debt, told Good Morning America. "It’s extraordinary stressful." As someone who graduated college amid the coronavirus pandemic, Quintanilla, 24, will be one of thousands of borrowers making their first-ever student loan payment in October, when payments resume after a three-year pause. The first-time payments are particularly impacting members of Gen Z, like Quintanilla, who were born after 1996 and who are on track to be the ... Read More
Donald Trump faces potential financial losses after a civil fraud trial ruling
aluxum/Getty Images(NEW YORK) -- A New York judge ordered the cancellation of the business certificates for firms in the state owned by former President Donald Trump and others associated with the Trump Organization, casting into doubt the future of the private sector empire on which Trump has built his reputation for business acumen. The directive came as part of a pretrial ruling in a $250 million civil fraud trial that found Trump had submitted "fraudulent valuations" for assets that were then used by himself, his eldest sons and his business to obtain better loan and insurance terms. In a scathing order on Tuesday, Judge Arthur Engoron cited "false and misleading square footage" of Trump's Fifth Avenue apartment, among other faulty ... Read More
SAG-AFTRA and AMPTP to meet on Monday, resuming strike negotiations
David Livingston/Getty Images(NEW YORK) -- The Alliance of Motion Picture and Television Producers (AMPTP) and Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) will be heading back into negotiations on Monday, Oct. 2. “SAG-AFTRA and the AMPTP will meet for bargaining on Monday, Oct. 2. Several executives from AMPTP member companies will be in attendance,” SAG-AFTRA and AMPTP announced in a joint statement Tuesday evening. The union, which represents roughly 160,000 members, began its strike on July 14. “We appreciate the incredible displays of solidarity and support from all of you over the last 76 days of this strike,” SAG-AFTRA’s statement said. The union encouraged its members to continue joining the picket lines “in strength and big numbers” ... Read More
What’s in tentative WGA deal? Proposed contract covers artificial intelligence, pay
Eric Thayer/Bloomberg via Getty Images(NEW YORK) -- The top brass at the Writers Guild of America approved a tentative agreement with the studios on Tuesday, ending a nearly 150-day strike and sending the deal to roughly 11,000 members for ratification. Hollywood writers will begin casting their votes on Monday and, if a majority supports the contract, it will shape employment in the industry on issues ranging from increases in pay to the use of artificial intelligence to the sharing of viewership data. The tentative agreement was confirmed by The Alliance of Motion Picture and Television Producers, or AMPTP, the group negotiating on behalf of the studios. The AMPTP did not immediately respond to ABC News' request for comment. Disney, one ... Read More
Chicken bone broth recall on products sold at Costco
Costco(NEW YORK) -- Costco shoppers might want to check their home pantry to ensure any broth they may have purchased from the big box retailer is not impacted by a recent recall. In a Sept. 22 recall letter to Costco members on the wholesaler's website, TreeHouse Foods announced that its 32-ounce cartons of Culinary Treasures Organic Chicken Bone Broth "may have the potential for non-pathogenic microbial contamination," and warned customers not to consume them. The recall impacts broth products sold between Sept. 8, 2022, and Sept. 22, 2023, bearing a "best before" date of Feb. 23, 2024 and the lot code 98E08242. "If you still have this item with a Best By Date of 02/23/2024, we ask that you discontinue ... Read More
WGA strike to end Wednesday, members authorized to return to work
Mario Tama/Getty Images(NEW YORK) -- After 148 days, leaders of the Writers Guild of America have unanimously voted to lift its strike, allowing writers to return to work Wednesday, Sept. 27. "The WGAW Board and WGAE Council also voted unanimously to lift the restraining order and end the strike as of 12:01 am PT/3:01 am ET on Wednesday, September 27th. This allows writers to return to work during the ratification process, but does not affect the membership's right to make a final determination on contract approval," the union announced on Tuesday. The WGA, which represents nearly 11,500 screenwriters, released the entire seven-page agreement. Since finalizing the Memorandum of Agreement (MOA), WGA was able to share details of the "exceptional deal, ... Read More
FTC sues Amazon, accuses company of illegally maintaining monopoly power
Mint Images/Getty Images(NEW YORK) -- The Federal Trade Commission and 17 state attorneys general filed a lawsuit against Amazon on Tuesday, accusing the company of illegally maintaining its monopoly power "to inflate prices, degrade quality, and stifle innovation for consumers and businesses." The major tech firm allegedly deployed illegal business tactics "to stop rivals and sellers from lowering prices, degrade quality for shoppers, overcharge sellers, stifle innovation, and prevent rivals from fairly competing against Amazon," the FTC said in a statement. The sheer size of Amazon does not amount to a violation of the law, the FTC said. Rather, the agency's complaint centers on a set of "far-reaching schemes" that impact hundreds of billions of dollars in sales each year ... Read More
Uber Eats to accept SNAP benefits for groceries following announcement from Instacart
Kinga Krzeminska/Getty Images(NEW YORK) -- Shoppers who rely on the Supplemental Nutrition Assistance Program, or SNAP, a federal program to provide food benefits to low-income households, will soon have even easier options for online grocery shopping. Uber recently announced updates to its food and delivery platform Uber Eats, which starting in 2024 will allow users to pay for groceries using SNAP and EBT benefits in the app. "We know that online food delivery can have a meaningful impact in reducing barriers to fresh groceries, especially for the most vulnerable -- including people living in food deserts, seniors, and those facing disabilities or transportation barriers," the company said in a press release. "Helping to improve access to quality food is incredibly ... Read More
American weekly jobless claims at lowest level since 1969
By MATT OTT AP Business Writer WASHINGTON -- The number of Americans applying for unemployment benefits last week fell to its lowest level in 52 years as the U.S. job market continues to show strength in the midst of rising costs and an ongoing virus pandemic. Jobless claims fell by 28,000 to 187,000 for the week ending March 19, the lowest since September of 1969, the Labor Department reported Thursday. First-time applications for jobless aid generally track the pace of layoffs. The four-week average for claims, which compensates for weekly volatility, also fell to levels not seen in five decades. The Labor Department reported that the four week moving average tumbled to 211,750 from the previous week’s 223,250. In total, ... Read More
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