Kim Kardashian will pay $1.26 million to settle charges from the Securities and Exchange Commission over a cryptocurrency ad she posted on Instagram Stories. The socialite and reality TV megastar received $250,000 to post about EthereumMax's EMAX tokens but didn't disclose that she was paid to do so, according to the agency. 

The SEC determined that Kardashian violated the anti-touting provision of federal securities laws. She didn't admit or deny the charges, though agreed to pay a $1 million penalty and around $260,000 in disgorgement, which the SEC said covers the fee she received for the ad plus prejudgement interest. In addition, Kardashian pledged not to promote cryptocurrency assets for three years.

"This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors," SEC chair Gary Gensler said. "We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals."

Earlier this year, a class-action suit took aim at Kardashian and Floyd Mayweather for promoting EthereumMax tokens. It accused the defendants of participating in a pump and dump scheme, in which investors promote an asset and sell their interest in it after the value rises. The suit claimed the value of the token soared by 632 percent after Mayweather and former NBA player Paul Pierce (another defendant in the case) promoted it.

According to a survey, 19 percent of people who heard about an Instagram Story from Kardashian that mentioned the cryptocurrency invested in EthereumMax. The lawsuit asserts that the value of the token nosedived by 98 percent the day after Kardashian's post.

This is far from the first time that Kardashian has been accused of publishing sponsored posts without disclosing that they're ads. Federal Trade Commission guidelines suggest that those who are paid to endorse something on social media should include the #Ad hashtag or include terms like "Sponsored," "Promotion" or "Paid ad."

In an incredible case of serendipity, a new podcast narrated by Kardashian, who is studying to become a lawyer, premiered on Spotify on Monday. The System: The Case of Kevin Keith is a true-crime podcast.

Twitter is still having trouble curbing the spread of CSAM (child sexual abuse material). Insider has learned (subscription required) that Twitter inadvertently ran ads on profiles either selling or soliciting CSAM. In an email to marketers, the social network said it had suspended all ads on profiles, updated its detection systems, banned accounts that broke its rules and launched an investigation. Reutersnotes Coca-Cola, Disney and NBCUniversal were some of the brands whose ads appeared next to the offending content.

Existing technology had already blocked over 91 percent of accounts like these, Twitter said. In its most recent transparency report, the company said it took action against 31 percent more CSAM-related accounts in the second half of 2021.

A Twitter spokesperson confirmed the incident and investigation in a statement. On top of existing work to catch CSAM, the company said it was ensuring it had the "right models, processes and products" to protect both advertisers and users.

The news is ill-timed for Twitter. It comes just weeks after The Verge reported that Twitter ditched efforts to build an OnlyFans clone over concerns it couldn't effectively catch CSAM and other forms of sexual abuse. It's also emerging as the social media continues to fight with Elon Musk over the fate of his potentially cancelled $44 billion acquisition. Musk has focused most of his objections on alleged misreporting of fake account data.

There's been an immediate financial impact as well. Reuters added that big names like Dyson and Mazda had either frozen their marketing campaigns or pulled ads from some areas on Twitter. More might be coming — Coca-Cola and Disney both said they considered the activity unacceptable, while NBCUniversal told Twitter to remove ads that ran against CSAM.

The US Securities and Exchange Commission has filed a lawsuit against two former MoviePass executives. In a federal complaint seen by Bloomberg, the agency accused Theodore Farnsworth and Mitch Lowe on Monday of misleading investors about the viability of the company’s $9.95 per month business model.

Farnsworth was the chief executive officer of Helios and Matheson Analytics, the parent company of MoviePass between 2017 and 2020. Lowe led MoviePass between 2016 and its collapse in 2020. The SEC alleges Farnsworth and Lowe “intentionally” and “repeatedly” shared false information.

“Faced with debilitating negative cash flows – rather than tell the public the truth – Farnsworth and Lowe devised fraudulent tactics to prevent MoviePass’s heavy users from using the service, and falsely and misleadingly informed the public that usage had declined naturally or due to measures the company had employed to combat subscribers’ purported violations of MoviePass’s terms and conditions of service,” the complaint states.

In addition to financial penalties, the SEC is seeking to prevent both Farnsworth and Lowe from serving in director or officer positions in any company that’s required to register securities with the agency. The SEC’s lawsuit also names former MoviePass business development executive Khalid Itum as a defendant. Itum allegedly pocketed $310,000 by submitting false invoices to the company. Last year, Helios and Matheson, Farnsworth and Lowe settled a lawsuit from the Federal Trade Commission related to allegations they mislead customers and failed to protect user personal information.

“The complaint concerns matters subject to an investigation that the company and other news outlets publicly disclosed nearly three years ago, and Mr. Farnsworth’s legal team will maintain the challenge to this complaint,” Chris Bond, a spokesperson for Ted Farnsworth told Bloomberg. “Mr. Farnsworth continues to maintain that he has always acted in good faith in the best interests of his companies and shareholders.”

The suit comes as a new version of MoviePass attempts to reestablish itself under the leadership of cofounder Stacy Spikes. The company recently launched a beta service in Chicago, Dallas and Kansas City, offering packages that start at $10 per month.

Boeing has agreed to pay $200 million to settle charges from the Securities and Exchange Commission. The agency found that Boeing made "materially misleading public statements" related to crashes involving its 737 Max aircraft. The company's former CEO Dennis Muilenburg will also pay $1 million to settle charges. The SEC alleged that Boeing and Muilenburg violated the antifraud provisions of federal securities laws. They neither admitted to nor denied the agency's findings.

The SEC alleged that, after the first crash in October 2018, which caused the death of 189 people, Boeing and Muilenburg were aware that the anti-stall Maneuvering Characteristics Augmentation System (MCAS) posed an ongoing safety concern. However, the company told the public that the 737 Max was “as safe as any airplane that has ever flown the skies.” 

After a second crash in March 2019, in which 157 people died, the company and Muilenburg claimed "there were no slips or gaps in the certification process with respect to MCAS, despite being aware of contrary information," the SEC said in a statement. Following the crashes, all 737 Max planes were grounded for over 18 months.

"There are no words to describe the tragic loss of life brought about by these two airplane crashes," SEC Chair Gary Gensler said. "In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair and truthful disclosures to the markets. The Boeing Company and its former CEO, Dennis Muilenburg, failed in this most basic obligation. They misled investors by providing assurances about the safety of the 737 Max, despite knowing about serious safety concerns."

The settlement "fully resolves the SEC’s previously disclosed inquiry into matters relating to the 737 Max accidents," Boeing told CNN. “Today’s settlement is part of the company’s broader effort to responsibly resolve outstanding legal matters related to the 737 Max accidents in a manner that serves the best interests of our shareholders, employees, and other stakeholders."

Boeing previously reached a $2.5 billion settlement with the Department of Justice to avoid criminal charges. Last year, a grand jury indicted Boeing's former chief technical pilot, Mark A. Forkner, on fraud charges. Forkner, the only Boeing employee who has faced a criminal indictment in relation to the crashes, was accused of deceiving the FAA's Aircraft Evaluation Group during evaluation and certification of the 737 Max. Following a four-day trial earlier this year, a jury found Forkner not guilty.

Meta is facing a hefty bill after losing a patent infringement lawsuit. A federal judge in Texas has ordered the company to pay Voxer, the developer of app called Walkie Talkie, nearly $175 million as an ongoing royalty. Voxer accused Meta of infringing its patents and incorporating that tech in Instagram Live and Facebook Live.

In 2006, Tom Katis, the founder of Voxer, started working on a way to resolve communications problems he faced while serving in the US Army in Afghanistan, as TechCrunch notes. Katis and his team developed tech that allows for live voice and video transmissions, which led to Voxer debuting the Walkie Talkie app in 2011.

According to the lawsuit, soon after Voxer released the app, Meta (then known as Facebook) approached the company about a collaboration. Voxer is said to have revealed its proprietary technology as well as its patent portfolio to Meta, but the two sides didn't reach an agreement. Voxer claims that even though Meta didn't have live video or voice services back then, it identified the Walkie Talkie developer as a competitor and shut down access to Facebook features such as the "Find Friends" tool.

Meta debuted Facebook Live in 2015. Katis claims to have had a chance meeting with a Facebook Live product manager in early 2016 to discuss the alleged infringements of Voxer's patents in that product, but Meta declined to reach a deal with the company. The latter released Instagram Live later that year. "Both products incorporate Voxer’s technologies and infringe its patents," Voxer claimed in the lawsuit.

Meta denied Voxer's claims in a statement to TechCrunch. It plans to fight the ruling. “We believe the evidence at trial demonstrated that Meta did not infringe Voxer’s patents,” a spokesperson said. “We intend to seek further relief, including filing an appeal.”

Ofcom, the broadcasting and telecoms regulator in the UK, is launching a probe to look into the cloud services tech giants offer in the coming weeks to ensure that there's healthy competition in the space. Further, the regulator has revealed that it will examine messaging and video calling services, as well as smart and connected devices in the near future. For its cloud investigation, Ofcom's market study will focus on the biggest cloud providers in the region, namely Amazon Web Services (AWS), Microsoft and Google. 

The three providers generate 81 percent of the revenue in the UK's £15 billion (US$16.95) cloud infrastructure services market. Ofcom's study will assess how well the market is working with these tech giants dominating the space. It will also examine the strength of the competition and whether the market, in its current state, makes it difficult for other players to enter and expand their share. 

Ofcom explains that it's looking to nip any potential competition concerns in the bud to prevent them from becoming a huge issue as the cloud services market matures. The lack of healthy competition, after all, could stifle growth and innovation and could lead to low quality of service. If the regulator determines that the market isn't working well, it can recommend regulatory changes to the government, take enforcement action itself or refer the situation to the Competition and Markets Authority (CMA). To note, the CMA has a separate and ongoing investigation into Google's ad tech practices.

The regulator will also launch probes to look into other digital markets over the next year. It will assess the impact of messaging and video calling services, such as WhatsApp, FaceTime and Zoom, on traditional methods of calling and messaging. Ofcom aims to determine how competition in this area could evolve in the coming years and whether the lack of cross-messaging and cross-calling capabilities between the services is a cause of concern. 

The agency also intends to investigate the competition in the smart speaker and TV space. It plans to analyze consumer behavior, as well as the bargaining power of major players with companies that provide content for the devices.

Selina Chadha, Ofcom's Director of Connectivity, said:

"The way we live, work, play and do business has been transformed by digital services. But as the number of platforms, devices and networks that serve up content continues to grow, so do the technological and economic issues confronting regulators.

That’s why we’re kick-starting a programme of work to scrutinise these digital markets, identify any competition concerns and make sure they’re working well for people and businesses who rely on them."

American Airlines says that hackers may have obtained personal information for a "very small number" of customers and employees. The company did not say exactly how many people were impacted, though it noted there's no evidence that the attackers have misused the information. It told affected customers that names, driver’s license and passport numbers, addresses, email addresses, phone numbers, dates of birth and medical information may have been compromised.

The hackers gained access to American's email system through a phishing campaign, as the Associated Press reported. The company told regulators in Montana that it discovered the intrusion in July. It started informing affected customers last week. American says it has secured the breached email accounts and brought in a third-party cybersecurity firm to investigate.

American said it's putting more technical measures in place to prevent similar breaches from occurring. The company has also offered customers affected by the breach two years of identity theft-protection coverage.

An American Airlines spokesperson provided the following statement to Engadget:

“American Airlines is aware of a phishing campaign that led to the unauthorized access to a limited number of team member mailboxes. A very small number of customers and employees’ personal information was contained in those email accounts. While we have no evidence that any personal information has been misused, data security is of the utmost importance and we offered customers and team members precautionary support. We are also currently implementing additional technical safeguards to prevent a similar incident from occurring in the future.”

The Department of Justice has asked a US federal judge to participate in the upcoming appeals case between Epic and Apple, according to court documents seen by Reuters. The companies will return to court next month to argue over the outcome of their 2020 antitrust case.

The Justice Department filed a brief to enter the case at the start of the year. The agency said it was concerned that Judge Yvonne Gonzalez Rogers had improperly interpreted US antitrust law. In 2019, reports surfaced that the DOJ was preparing to launch a probe of Apple’s business practices. A decision to uphold the company's win over Epic could limit the DOJ’s ability to sue it for antitrust violations.

"The United States believes that its participation at oral argument would be helpful to the court, especially in explaining how the errors (in antitrust law interpretation) could significantly harm antitrust enforcement beyond the specific context of this case," the Justice Department wrote on Friday.

The agency has asked for 10 minutes of the court’s time. Neither side is against the Justice Department’s involvement, though Apple has requested that the DOJ’s argument time count against Epic’s total time allotment or that the court extends the proceedings.

Amazon still can't avoid lawsuits over third-party prices. The New York Timesreports California has filed an antitrust lawsuit accusing Amazon of violating both the Cartwright Act and state competition law through its pricing rules. The internet giant is stifling competition by preventing sellers from offering lower prices on other sites, according to Attorney General Rob Bonta. If they defy Amazon, they risk losing buy buttons, prominent listings or even basic access to Amazon's marketplace.

If successful, the lawsuit would bar any contracts deemed anti-competitive and notify sellers that they're free to reduce prices elsewhere. Amazon would also have to pay damages, return "ill-gotten gains" and appoint a court-approved overseer.

In a statement, an Amazon spokesperson said California had the situation "exactly backwards." Third-parties still have control over prices, Amazon claimed, and inclusion in the "Buy Box" space supposedly shows that a deal is truly competitive. It further contended that the suit would raise prices. You can read the full statement below.

The case is similar to a District of Columbia lawsuit. The region's Superior Court dismissed that case in March citing a lack of evidence, but Attorney General Karl Racine is appealing the decision.

Amazon is facing increasing government scrutiny of its practices. The Federal Trade Commission has been investigating issues ranging from major acquisitions through to withheld driver tips, while EU pressure prompted Amazon to revise its seller program and improve third parties' chances of competing with direct sales. The tech firm has balked at these moves, and went so far as to both demand the FTC chair's recusal as well as fight agency requests to interview executives. Don't expect either side to back down any time soon, in other words.

"Similar to the D.C. Attorney General—whose complaint was dismissed by the courts—the California Attorney General has it exactly backwards. Sellers set their own prices for the products they offer in our store. Amazon takes pride in the fact that we offer low prices across the broadest selection, and like any store we reserve the right not to highlight offers to customers that are not priced competitively. The relief the AG seeks would force Amazon to feature higher prices to customers, oddly going against core objectives of antitrust law. We hope that the California court will reach the same conclusion as the D.C. court and dismiss this lawsuit promptly."

Construction workers might soon spend more time building and less time preparing. HP has unveiled a SitePrint robot that autonomously prints layouts on construction site floors. With the help of a remote control tablet and cloud tools, the machine can outline walls, doors and other elements with little intervention — it can avoid unexpected obstacles, including steep drops. The company claims the bot can finish a layout in a "fraction" of the time humans require, although this will vary by the complexity of the project.

The robot includes two batteries that can each handle up to four hours of printing. It can print on surfaces like concrete, plywood and terrazzo, even if they're rough. You can also choose inks that last days or months to suit the timeline for a given job.

HP is making the SitePrint robot available to North American companies this month as part of an early access program. The finished automaton and a full-scale launch are due sometime in 2023. The hardware has already been tested with projects ranging from airports to hospitals.

There's clearly a concern SitePrint might automate people out of jobs. The robot only requires one operator versus the two or three people typically needed for manual layouts. However, its timing might be particularly apt. As in many other fields, the construction industry is grappling with labor shortages. Robots like SitePrint could help builders make the most of limited staff, or take on more ambitious tasks without hiring larger crews.