Businesses

Elon Musk Pulled Out of Settlement With SEC At Last Minute (cnbc.com) 198

Sources have shared some new details with CNBC relating to the recent SEC charges against Tesla CEO Elon Musk. Yesterday, U.S. securities regulators sued Musk for allegedly making false statements related to his abandoned efforts to take Tesla Motors private. Now, according to CNBC, Tesla and the SEC were close to a no-guilt settlement but Elon Musk pulled out at the last minute. From the report: Under the deal, Musk and Tesla would have had to pay a nominal fine, and the CEO would not have had to admit any guilt, the sources said. However, the settlement would have barred Musk as chairman for two years and would require Tesla to appoint two new independent directors, CNBC's David Faber, citing sources. Musk refused to sign the deal because he felt that by settling he would not be truthful to himself, and he wouldn't have been able to live with the idea that he agreed to accept a settlement and any blemish associated with that, the sources said. Musk called the SEC's allegations "unjustified" and that he acted in the best interests of investors. "Tesla and the board of directors are fully confident in Elon, his integrity, and his leadership of the company, which has resulted in the most successful U.S. auto company in over a century. Our focus remains on the continued ramp of Model 3 production and delivering for our customers, shareholders and employees," said Tesla's board of directors in a statement.
The Courts

Facebook Faces Class-Action Lawsuit Over Massive New Hack (theverge.com) 24

Follow the revelations this morning that a hacker exploited a security flaw in a popular feature of Facebook to steal account credentials of as many as 50 million users, a class-action lawsuit has been filed on behalf of one California resident, Carla Echavarria, and one Virginia resident, Derick Walker. "Both allege that Facebook's lack of proper security has exposed them and additional potential class members to a significantly increased chance of identity theft as a result of the breach," reports The Verge. From the report: The lawsuit was filed today in U.S. District Court for the Northern District of California. The complaint alleges Facebook is guilty of unlawful business practices, deceit by concealment, negligence, and violations of California's Customer Records Act. The plaintiffs want statutory damages and penalties awarded to them and other class members, as well as the providing of credit monitoring services, punitive damages, and the coverage of attorneys' fees and expenses. Although Facebook says it has fixed the issue that resulted in the breach, it still has little to no information to provide on who is behind the attack or when the attack even occurred.

As it stands, in addition to this new lawsuit, Facebook is facing pressure from the New York State Attorney General Barbara Underwood, who announced on Twitter this afternoon that, "We're looking into Facebook's massive data breach. New Yorkers deserve to know that their information will be protected." Federal Trade Commissioner Rohit Chopra had a terse public reaction, releasing a simple three-line tweet reading, "I want answers." In addition to Underwood and Chopra, Sen. Mark R. Warner (D-VA) released a statement describing the hack is "deeply concerning" and calling for a full investigation.

Facebook

US Government Loses Bid To Force Facebook To Wiretap Messenger Calls (techcrunch.com) 40

An anonymous reader quotes a report from TechCrunch: U.S. government investigators have lost a case to force Facebook to wiretap calls made over its Messenger app. A joint federal and state law enforcement effort investigating the MS-13 gang had pushed a district court to hold the social networking giant in contempt of court for refusing to permit real-time listening in on voice calls. According to sources speaking to Reuters, the judge later ruled in Facebook's favor -- although, because the case remains under seal, it's not known for what reason. The case, filed in a Fresno, Calif. district court, centers on alleged gang members accused of murder and other crimes. The government had been pushing to prosecute 16 suspected gang members, but are said to have leaned on Facebook to obtain further evidence.
Iphone

iPhone XS Passcode Bypass Hack Exposes Contacts, Photos (threatpost.com) 23

secwatcher shares a report from Threatpost: A passcode bypass vulnerability in Apple's new iOS version 12 could allow an attacker to access photos and contacts (including phone numbers and emails) on a locked iPhone. The hack allows someone with physical access to a vulnerable iPhone to sidestep the passcode authorization screen on iPhones running Apple's latest iOS 12 beta and iOS 12 operating systems. Threatpost was tipped off to the bypass by Jose Rodriguez, who describes himself as an Apple enthusiast and "office clerk" based in Spain who has also found previous iPhone hacks.

Rodriguez posted a video of the bypass on his YouTube channel under the YouTube account Videosdebarraquito, where he walks viewers through a complicated 37-step bypass process in Spanish. Threatpost has independently confirmed that the bypass works on a number of different iPhone models including Apple's newest model iPhone XS. The process involves tricking Siri and Apple's accessibility feature in iOS called VoiceOver to sidestep the device's passcode. The attack works provided the attacker has physical access to a device that has Siri enabled and Face ID either turned off or physically covered (by tape, for instance).

Google

Google CEO Will Testify Before US House on Bias Accusations (reuters.com) 147

Google CEO Sundar Pichai has agreed to testify before the House Judiciary Committee in November, following the midterm elections. He met with House Majority Leader Kevin McCarthy and other senior Republicans Friday to discuss accusations that Google is biased against conservatives (a charge the company has denied). From a report: "I think we've really shown that there is bias, which is human nature, but you have to have transparency and fairness," McCarthy said. "As big tech's business grows, we have not had enough transparency and that has led to an erosion of trust and, perhaps worse, harm to consumers." Alphabet's Google unit has repeatedly denied accusations of bias against conservatives. Pichai left the meeting without comment. Pichai wrote in an internal email last week that suggestions that Google would interfere in search results for political reasons were "absolutely false. We do not bias our products to favor any political agenda." [...] Asked if Republicans will push to break up Google, McCarthy said: "I don"t see that." He said the hearing will look at privacy, bias issues, China and other matters.
The Internet

Green Bay Packers and Microsoft Win Domain Name Fight After Family Sought Cash, Tickets and Tablets (geekwire.com) 196

theodp writes: Last fall, Microsoft and the Green Bay Packers announced a $10 million partnership to build TitletownTech, "an innovation center focused on developing and advancing scalable, technology-enabled ventures," which aims to bring an economic boost to the area near Lambeau Field (Microsoft President Brad Smith hails from the region). Unfortunately for them, they failed to secure their venture's namesake domain name ahead of time. GeekWire reports on the fate of a Wisconsin family that was sitting on the coveted titletowntech.com domain name and offered to give it up in exchange for $750,000 cash, 8 lifetime Packers season tickets, 2 parking passes, and 8 Microsoft Surface Pro tablets (with lifetime MS-Office licenses). The family said the admittedly-ridiculous demand wasn't meant to be taken seriously but was intended to send a message after they received a suspicious $5,000 buyout offer from an anonymous "service" that the Packers engaged to try to recover the fumbled domain. Not amused, Green Bay Packers, Inc. flexed its legal muscle, filing a domain dispute complaint with the World Intellectual Property Organization (WIPO), which ordered the disputed domain name to be transferred to the team shortly after the USPTO issued a Notice of Allowance to the NFL team for a trademark on TitletownTech, leaving the Wisconsin family with zilch. And so the old titletowntech.com ("TitleTown Tech Solutions") was just a bad memory by the time Microsoft returned to Green Bay last week to give an update on the joint venture, including the news that Microsoft will play a key role in the leadership team at TitletownTech, which will also house its TEALS program employees. [...] And as for the domain name, the NFL franchise with more titles than any other team ultimately did what it has done for years -- win.
Privacy

Delta's Fully Biometric Terminal Is the First In the US (engadget.com) 53

In what Delta is calling the first "biometric terminal" in the country, they will reportedly use facial recognition at check-in, security and boarding inside the international terminal at Atlanta's Hartsfield-Jackson airport. Engadget reports: Passengers that want to use facial recognition can approach a kiosk in the lobby and click "Look," or approach a camera at the ticket counter, TSA checkpoint or when boarding. Once a green check mark flashes on the screen, they can proceed. Delta -- which plans to introduce fingerprint scanning to fold, too -- says passengers can use this system instead of the passports to get through these checkpoints, but you'll still need your passport for use in other non-biometric-equipped airports (although maybe one day we'll do away with passports altogether). Privacy advocates are concerned about the security risks present in facial scans, especially as it's an opt-out process. Others, however, say it makes air travel a more streamlined process.

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