Must Read Money Stories for Monday, Sept. 26

by September 26, 2016

 

Twitter (Image from Pixelkult via Pixabay)

Twitter’s stock prices spiked 21 percent on Friday, following reports of a possible sale to Salesforce.com. (Image from Pixelkult via Pixabay)

Ex-workers sue Wells Fargo

Former Wells Fargo employees slapped the financial giant with a $2.6 billion-class action lawsuit in California federal court late last week on behalf of other ex-workers who they say were either fired or demoted when failing to meet aggressive sales quotas, according to Reuters. It’s the latest development in the sales tactic scandal that hit Wells Fargo earlier this month, when it reached a $190 million-settlement with the government over controversial sales practices that resulted in the firing of 5,300 employees over recent years. The class action suit was filed just days after Wells Fargo’s CEO apologized before a Congressional senate committee and faced grilling from members such as Sen. Elizabeth Warren.

Twitter sale?

Just three years since Twitter’s big IPO debut on Wall Street, rumors of a possible sale are now rippling throughout the tech world. The New York Post reports that Twitter’s stock prices, which have tumbled 30 percent over the past year, spiked 21 percent on Friday following news headlines rumoring a potential takeover by Salesforce.com. Twitter has been plagued by turmoil in recent years that involves a series of upper management upsets, product delays and failed efforts to expand its number of social media users—drastically different from the rising-star image it carried into its Wall Street debut that rivaled those of Facebook and Google.

Cash dump for Republican AGs

Throughout Donald Trump’s Republican bid for the White House, many longtime conservative donors have chosen to redirect their campaign funds elsewhere in hopes of preserving the GOP’s presence in other key offices, such as congress, governors and, as The Washington Post recently reported, state attorneys general. The Post article was based on recent campaign data collected and analyzed by watchdog group Center for Responsive Politics, which found the fossil fuels, health care and other big industries have so far dumped near-record campaign funds into state Republican AG races through a national conservative trade group. The Democratic counterpart trade group, on the other hand, has raised about a third as much money this year. AG offices, as the Post explains, are considered the “last bulwark against federal encroachment” and have aggressively pushed back against various Obama administration policies.

Big money for Airbnb

Home-sharing company Airbnb has scooped up an $850 million-funding round from Google’s parent Alphabet Inc., The Wall Street Journal reported late last week. At a $30 billion valuation, Airbnb is among the top five largest venture-backed tech giants in the world—and subsequently is facing pressure to go public. The WSJ reports that Alphabet’s cash infusion is largely an effort to thwart that Wall Street pressure. Airbnb is juggling rapid expansion with the mounting pushback it faces from state and local regulators, neighborhood associations and hoteliers throughout the country.