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Volkswagen chokes on its first loss in 15 years
After inventing a diesel engine that doesn't emit any harmful gases into the atmosphere, you'd think that VW would never run out of money ever again. Despite this, the German auto maker has just posted a quarterly loss of €3.48 billion ($3.84 billion) which, if we're honest, makes very little sense. After all, the financial documents reveal that the firm was making a pile of money up until September, and then everything drops off a cliff. The only thing that makes sense is if something totally implausible took place, like discovering that the firm was using software in a global system of emissions fraud. But, if we're honest, nobody in their right mind would attempt something so irresponsible as that, would they.
VW's 2016 diesels have a different device that may dupe emissions tests
Just when you thought the Volkswagen emissions scandal couldn't get any worse, it might do just that. The automaker revealed to US regulators last week that its 2016 diesel models may have a different device that could help those vehicles earn higher marks on the government's emissions tests. The tech in question is "auxiliary emissions control device" separate from the software on automobiles made between 2009-2015 that was first disclosed last month. This new software heats the pollution control catalyst quicker, boosting the performance of the components responsible for separating harmful nitrogen dioxide into nitrogen and oxygen.[Image credit: Matt Cardy/Getty Images]
Volkswagen will recall its super-polluting cars in 2016
Matthias Mueller, the man that Volkswagen hopes will save the company after Emissions-gate, has revealed the first stage in his rescue plan. According to Reuters, the executive told German media that the firm will begin recalling its emissions-cheating vehicles in January, with the program running until the end of 2016. Mueller is quoted as saying that the vehicles will all be "fixed" by that date, implying that the company has found a safe way to reduce their emissions levels. In addition, Mueller has revealed that he's using the crisis as justification to conduct a top-down reorganization of the German car conglomerate. The chief has pledged to make his company smaller and less centralized, adding that each of its various divisions will have to justify their contribution to the overall firm. Which, if we're honest, sounds ominous in the extreme.[Image Credit: AFP/Getty]
DraftKings and FanDuel face questions about 'insider trading'
Massive ad campaigns have made the rise of daily fantasy hard to ignore, but maybe there's one thing that could put the brakes on the likes of FanDuel and DraftKings: scandal. The issue seems to have started with a forum thread on Rotogrinder calling out "Millionaire Maker" information posted early by a DraftKings employee. Usually, that info is not available until after games start because its impact on each football player's value could help someone set up their roster, and it's come under more scrutiny since that same employee won $350,000 in the same week on competing site FanDuel. Now players wonder who has access to what information, when, and if they're using it to gain an edge by playing on rival daily fantasy sites. DraftKings and FanDuel have responded to the controversy with a joint statement, which is included after the break.
Volkswagen says 1.2 million UK cars involved in emissions scandal
After confirming that it will spend more than 6.5 billion euros (£4.8 billion) to fix the 11 million vehicles affected by its diesel emissions scandal, Volkswagen has come clean over how many of those are in the UK. The company says a total of 1,189,906 British cars with EA 189 EU5 engines will be recalled in the coming weeks and is in the process of contacting affected customers about what they need to do. It also plans to create a "self-serve process" for owners to check if their car is impacted by the issue, but notes that all of its vehicles are "technically safe and roadworthy" in the meantime.
Volkswagen knew about shady emissions practices years ago
Volkswagen's recently departed CEO may have been caught off-guard by his company's attempt to hide true diesel car emissions from regulators, but there are now signs that some VW higher-ups knew the truth. German newspaper Frankfurter Allgemeine Sonntagzeitung claims that technicians had warned about dodgy emissions practices in 2011, while Bild maintains that key supplier Bosch told "top circles" at VW about its emissions concerns back in 2007. It's not clear just who knew about the issues and where the buck stops -- VW is declining to comment, which isn't surprising when it's still in the midst of an investigation into what happened.
Toshiba CEO quits after company lied about $1.2 billion profits
We knew it was coming, but Toshiba's CEO and president Hisao Tanaka is no longer at the company. As the electronics giant attempts to recover from the fallout following the disclosure that it declared $1.2 billion in false profit, Tanaka and two other executives have announced their resignations to take responsibility for the scandal. An independent investigation found that management lied about operating profits for over six years in a bid to meet internal targets, starting just after the financial crash seven years ago.
Toshiba accounting scandal may lead to CEO's ouster
Toshiba might be in for a rough, rough ride. Reuters sources claim that the tech giant is going to rack up the equivalent of $2.4 billion to $3.2 billion in charges due to "overstated profits" over the past six years. Investigators are still trying to determine whether or not executives played a role, and they won't reveal the extent of what went wrong until sometime next week. However, their findings may not matter much for CEO Hisao Tanaka -- he'll reportedly have little choice but to resign for letting this scandal happen on his watch. More than half of the board of directors may get the boot, too.
High-tech TV: How realistic is the hacking in prime-time shows?
A group of five impeccably dressed high school girls are almost murdered dozens of times by the same, mysterious stalker and the police in their idyllic small town are either corrupt or too incompetent to care. How do the girls fight back? Hacking, of course. At least, that's one way they do it on Pretty Little Liars. "Hacking" is the deus ex machina in plenty of scenarios on Pretty Little Liars and other mainstream programs, allowing people to easily track, harass, defend and stalk each other 30 to 60 minutes at a time. But how real is it? To determine the feasibility of the hacks presented on shows like Pretty Little Liars, Sherlock, Scandal, Arrow, CSI: Cyber and Agents of SHIELD, I spoke to Patrick Nielsen, senior security researcher at Kaspersky Lab.
AP: Lawmaker's Instagram account proves he's misusing taxpayer money
Rep. Aaron Schock (R) from Illinois has been spending taxpayer money on renting private jets, getting massages and taking his staff to sold out concerts, according to the Associated Press. And, get this: AP says it has confirmed all those times he rented a private jet, thanks in part to his Instagram posts. AP extracted location data from his photos and compared it with the records for each flight billed against his office. Current rules state that lawmakers can use taxpayer money to pay for their share of the cost for private flights (other passengers would have to pay for their share), but that was only approved in January 2013.
EVE Evolved: Should CCP interfere in the sandbox?
When it comes to player outrage, EVE Online seems to make the headlines more than any other MMO. The game has endured several high-profile scandals in its 10-year history, from the T20 developer corruption incident in 2007 to 2011's famous Monoclegate scandal. As EVE is a true sandbox game with a focus on PvP and player competition, developers have historically limited their direct influence on the universe. The importance of limiting interference became abundantly clear during the T20 incident when it was discovered that a developer had given tech 2 blueprints and preferential treatment to the Band of Brothers alliance. This interference in the sandbox had a profound and lasting impact on EVE's political endgame and undermined the legitimate accomplishments of other alliances. Some of the same issues that were raised in the wake of that scandal have now resurfaced amidst controversy over CCP's community team and its involvement with third-party fansites. Gambling website SOMER Blink was selected to host a huge giveaway event with rare prizes provided by CCP, and the contest organisers were then given rare battleships worth billions of ISK to keep as thank-you presents. In this week's EVE Evolved, I run down the details of the latest EVE Online controversy and ask whether CCP should directly interfere in the sandbox at all.
CCP responds to EVE Online favoritism scandal
It's never wise to kick a hornet's nest, and there is perhaps no hornet's nest in the world of MMOs that is as prone to swarm and sting as that of the EVE Online community. EVE players have been up in arms over allegations that CCP, the studio behind EVE, showed favoritism to SOMER.Blink, a third-party lottery site, by providing its employees with exceptionally rare Ishukone Watch Scorpions (fancy ships), as a reward for the site's continued contribution to the EVE community. After a few days of fan caterwauling, CCP has issued a lengthy and detailed response built to clarify what happened, why it happened, and what it means. First, CCP explained that the Ishukone Watch Scorpion is a promotional item with no value beyond that which is created by its rarity. The studio also noted that only 132 ships exist, all of which were handed out by CCP to community contributors. CCP explained that giving away the ships to fansites and contributors was meant to be a continued initiative but is now on hold.
No jail time for Olympus bosses who committed $1.7 billion accounting fraud
You might think a harmless white collar crime would escape the wheels of justice. After all, what's a little $1.7 billion accounting scandal in the grand scheme of things? As it turns out, you wouldn't be far wrong: none of the three senior figures sentenced in Japan today for falsifying Olympus Corp.'s financial accounts have been sent to jail. Former Chairman Tsuyoshi Kikukawa received a three-year suspended sentence, in light of the fact that he didn't make the original decision to hide the firm's financial losses, while a former executive VP and a former auditing officer also got suspended sentences after making similar defenses. The company itself was fined $7 million. Meanwhile, the two men accused of starting the fraud, former presidents Masatoshi Kishimoto and Toshiro Shimoyama, have escaped all charges because, as reported by Kyodo News a couple of months ago, too much time has elapsed since the original crime. Oh well. If there's any upside to this sorry saga, we guess it's the fact that the whistleblower who lost his job after exposing the scandal, former CEO Michael Woodford, eventually saw some restitution.
Another former Olympus executive arrested in accounting scandal
As a dreaded accounting scandal continues to drag Olympus' name through the mud, federal agents in the United States arrested yet another gentleman in connection with the firm's alleged fraud. Chan Ming Fon, a citizen of Taiwan, was reportedly arrested in Los Angeles today. As the story goes, he was a former bank executive in the company, and he received some $10 million for his assistance in keeping nearly $2 billion in losses from surfacing. Preet Bharara, the United States attorney in Manhattan, said the following: "As alleged, Chan Ming Fon was handsomely paid to play an international shell game with hundreds of millions of dollars of assets in order to allow Olympus to keep a massive accounting fraud going for years." But hey, troubles aside, at least we've got an E-5 sequel coming next year! Distractions! Huzzah!
League of Legends claims title of 'most played video game in the world'
This past week, League of Legends' Season Two Championship was sidetracked by a cheating scandal that left some fans feeling alienated. Now, on the eve of the finals, Riot Games has released a load of statistics to highlight the fact that LoL is indeed a popular competitive game worthy of its place in the MOBA pantheon. The title boasts over 70 million registered summoner names hailing from more than 145 different countries. LoL has also declared itself the most played video game on the planet, averaging over one billion monthly hours world-wide. Other graphs include comparisons of daily active players (12 million) and peak concurrent players (three million). Check out all of the stats compiled in the infographic after the cut. [Source: Riot Games press release]
Former Olympus executives plead guilty in accounting fraud trial
Three executives from troubled imaging giant Olympus have pleaded guilty to artificially boosting the company's true value in 2007 and 2008 by concealing losses in financial statements. Former chairman Tsuyoshi Kikukawa, ex-auditor Hideo Yamada and former VP Hisashi Mori were charged with fraud in the scandal, which was brought to light last year by ex-CEO Michael Woodford. He was fired by the Olympus board for blowing the whistle, but reportedly received a large settlement for his troubles. The company has since confessed to cooking the books as far back as the '90s to hide investment losses, and revealed in 2011 that it had a billion dollars less in value than previously stated. That, along with the poor performance of its camera division, has forced Olympus to seek a partner or raise capital to survive.
German prosecution charges HP staff with bribing Russian officials to clinch PC contract
The legal system's engines can take awhile to get churning, but there's no questioning the impact when they're at full bore. German prosecutors have wrapped up an almost three-year investigation into allegations of HP managers' bribery by charging the executives involved. Hilmar Lorenz, Päivi Tiippana and Ken Willett, along with claimed accomplice Ralf Krippner, have all been indicted for supposedly funneling €7.5 million ($9.7 million) in bribes through a German subsidiary and far-flung shell accounts to land a €35 million ($45.3 million) PC supply deal with Russia's Prosecutor General Office early in the previous decade. While only the people directly attached to the scandal currently face any consequences if found guilty, German lawyers are motioning to have the PC builder attached to the case, and there's a chance the formal charges could fuel an ongoing US investigation. HP is cooperating even as it's trying to distance itself from the indictments as much as possible -- these are for old allegations and a "former HP company," it says. While we don't yet know the whole story, it may be a protracted tale knowing that at least Tiippana and Willett plan to fight the accusations.
Apple and publishers offer deal to put price fixing scandal behind them in EU
In the US, the e-book price fixing scandal appears to be winding towards its inevitable conclusion. Many of the publishers settled with the DOJ right off the bat, and now the states themselves have gotten three publishing houses to cough up $69 million in their own agreement. (Of course, Apple, Macmillan and Penguin have all decided to go the trial route, but we'll have to wait till next year to see how that plays out.) In Europe, the battle is still raging on, but Reuters is reporting that the accused are offering concessions in a bid to put the antitrust allegations behind them. The only name missing from the list is Penguin, which may or may not be part of the plea deal. Not all the details of the proposals have been revealed yet, and there's no guarantee the commission will accept them. The heart of the settlement, however, would involve allowing Amazon to sell e-books at a discounted price for two years. Would cheaper Kindle books be good, clean fun for the whole family? Sure, but it certainly pales in comparison to the potential penalties if Apple and their publishing partners go to trial.
Olympus reportedly in final talks for Sony investment
If the recent chapter in Olympus' history was a photo, it'd be a blurry thumb covering the subject's head. But, if reports from Nikkei are correct, it looks like the next one might be a happy family portrait. As suggested earlier this year, Sony is reportedly close to agreeing on a 50 billion yen (about $620 million) investment in the scandalized firm. This would likely give the Japanese electronics giant a 10 percent stake in Olympus, making it the largest single shareholder. This isn't the first time we've seen the troubled camera and optics brand associated with other electronics firms, and with Olympus telling Reuters that "This is not something that we have announced" we'll just have to wait and see exactly how this next frame develops.
Olympus to settle with ex-chief exec over misconduct, may involve mountains of cash
As Olympus' recent accounting scandal finally begins to wind down, the guy who blew the whistle on the financial wrongdoings might actually be the one to make out like a bandit. Michael Woodford, former chief executive of the company, has settled out of court with his former employer over his unfair dismissal that occurred just two weeks after his appointment. The settlement still has to be approved by the mostly new board (read: the other guys got arrested), but the Financial Times speculates that it'll result in £10 million ($15.5 million) being awarded to Woodford, or what's left on his contract. Company stock prices are around half of what they stood at before the scandal. Suddenly all those Facebook shares you jumped on don't look so bad.
