Business and Finance News - 7.1.24

Judge Allows SEC Lawsuit Against Binance to Proceed, Denying Dismissal Request and Highlighting Allegations of Securities Law Violations

• A judge ruled most of the SEC lawsuit against Binance can proceed.

• Binance's request to dismiss the SEC lawsuit was denied.

• The SEC accuses Binance and founder Changpeng Zhao of breaking securities laws.

• Allegations include inflating trading volumes and diverting customer funds.

• Binance is also accused of misleading investors about market surveillance.

• SEC claims Binance facilitated trading of unregistered securities.

• Binance previously settled for $4.3 billion with the DOJ and CFTC.

*Binance - Binance is one of the largest cryptocurrency exchanges in the world.

Redbox Owner Chicken Soup for the Soul Entertainment Files for Bankruptcy, Owes $970M, Defaults on Loans and Misses Payroll

• Redbox’s owner, Chicken Soup for the Soul Entertainment, filed for bankruptcy protection.

• The company defaulted on loans and missed payroll for employees.

• Employees haven't been paid since June 21st; health insurance lapsed in May.

• The company owes money to major studios like Universal, Sony, and Warner Bros.

• Chicken Soup owes $970 million in debt, per bankruptcy filing.

• The company took on $325 million debt when acquiring Redbox in 2022.

• Chicken Soup was sued over a dozen times for unpaid bills, recently settling with NBCUniversal.

*Chicken Soup for the Soul (CCSE) - Chicken Soup for the Soul is a publishing, consumer goods, and media company known primarily for its ownership of automated retail media kiosk company, Redbox.

Nike Faces Downgrades Amidst Sales Decline, Management Criticism, and $28B Market Cap Loss, Despite 37% Sales Growth

• Nike's fiscal 2025 guidance led to downgrades from at least six investment banks.

• Analysts questioned CEO John Donahoe's management and company credibility.

• Founder Phil Knight expressed unwavering confidence in CEO John Donahoe.

• Nike warned of a 10% sales decline in the current quarter.

• Nike's shares dropped 20%, losing $28 billion in market cap.

• Nike's stock underperformed the S&P 500 and retail-focused ETF during Donahoe's tenure.

• Nike's annual sales grew 37% from fiscal 2020 to fiscal 2024 under Donahoe.

*Nike (NKE) - Nike, Inc. is a global corporation that designs, manufactures, and sells athletic footwear, apparel, equipment, and accessories.

"Inside Out 2" Becomes 2024's Highest-Grossing Film, Surpasses $1 Billion, Breaks Animation Records, and Revitalizes Pixar

• "Inside Out 2" is the highest-grossing film of 2024, surpassing $1 billion globally.

• It’s the first film since "Barbie" to top $1 billion at the global box office.

• No Disney animated feature had grossed over $480 million since 2019 before "Inside Out 2."

• "Inside Out 2" grossed $1 billion faster than any animated movie in history.

• Family audience made up over 70% of domestic attendance during the film's debut.

• The film attracted 14% of its audience from teens aged 13 to 17.

• Pixar faced box office struggles post-pandemic, with several films debuting on Disney+.

*Pixar (DIS) - Pixar Animation Studios, commonly referred to as Pixar, is a renowned American film studio, owned by The Walt Disney Company, specializing in computer-animated films.

Massachusetts Rideshare Drivers to Earn $32.50/Hour with Benefits; Uber and Lyft to Pay $175M Settlement

• Massachusetts rideshare drivers will earn a minimum of $32.50 per hour starting August 15th.

• Drivers will receive company-provided benefits but remain independent contractors.

• Uber and Lyft will pay a combined $175 million to underpaid drivers.

• Drivers will get yearly inflation-based pay raises and up to 40 hours of sick leave annually.

• Sick leave will be paid at $20 per hour, with stipends for healthcare and family leave.

• Uber and Lyft must conduct annual audits and report to the Attorney General.

• The settlement stops rideshare companies from supporting a similar ballot initiative in Massachusetts.

*Lyft (LYFT) - Lyft is a transportation network company that operates a ridesharing service primarily through a mobile app.

*Uber (UBER) - Uber is a technology company that provides ride-hailing services through its mobile app, allowing users to book rides with drivers who use their own vehicles.

Here’s how the markets closed on Friday:

• Dow Jones: 39,118.86 -45.20 (-0.12%)

• S&P 500: 5,460.48 -22.39 (-0.41%)

• Nasdaq: 17,732.60 -126.08 (-0.71%)

• Bitcoin (BTC): $62,157.53 (1:30PM PST on 6/30/24)

• Ethereum (ETH): $3,426.47 (1:30PM PST on 6/30/24)

Here’s how the THE SUPER SIX STOCKS did on Friday:

• Microsoft (3.322T): 446.95 -5.90 (-1.30%)

• Apple (3.23T): 210.62 -3.48 (-1.63%)

• Nvidia (3.044T): 123.54 -0.45 (-0.36%)

• Alphabet (2.267T): 183.42 -3.44 (-1.84%)

• Amazon (2.011T): 193.25 -4.60 (-2.32%)

• Meta Platforms (1.279T): 504.22 -15.34 (-2.95%)