The Wall Street Journal - 26.11.2019

B2| Tuesday, November 26, 2019 **** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A

Advanced Micro Devices
................................ B
Alphabet......................B
Amazon.com.............B
A.P. Moller-Maersk.....B

B

Baidu...........................A
Bayerische Motoren
Werke........................B
Binance......................B

C

CBS..............................B
Charles Schwab...B1,B
CRISPR Therapeutics.A
CVS Health..................B

D

Daimler........................B
Danaher.......................B

E-F

eBay....................A1, B

Fiat Chrysler

Automobiles.............B

Financiére Richemont

................................ B

Ford Motor..................B

G

General Electric..........B

Giuliani Partners........A

Global Blood

Therapeutics.............A

Goldman Sachs..B1, B

L

Live Nation

Entertainment..........A

LVMH Moët Hennessy

Louis Vuitton....B1,B

M

McDonald's..................B

N

Novartis......................A

Nvidia........................B

O

Outcome Health..........B

S-T

Starboard Value..........B

Subaru.........................B

TD Ameritrade Holding

..........................B1, B

Tesla............................B

Tiffany ................B1,B

Toronto-Dominion Bank

................................ B

Toyota Motor..............B

21st Century Fox........B

U

Uber Technologies......A

V

Vertex Pharmaceuticals

.................................. A

Viagogo Entertainment

.................................. A

W

Westpac Banking........B

INDEX TO PEOPLE

BUSINESS & FINANCE

you want,” Mr. Chung said. He

added, “It’s not about the size

of the display but about the

content and where that content

is located.”

Already, drivers are strug-

gling to stay focused with an

influx of new technology com-

ing into the car and large dis-

plays only add to the cognitive

load, said David Strayer, a Uni-

versity of Utah professor who

studies in-car technology. “As

the screens get bigger, they also

tend to inherit more functions

and features,” Mr. Strayer said.

The wider use of touch

screens is also worrisome be-

cause they tend to replace the

more familiar buttons and

knobs, and can be distracting

for drivers, who often have to

navigate functions by tapping

through different menus, said

Jake Nelson, a traffic safety

and advocacy director at AAA.

Some car shoppers aren’t

impressed with the larger

screens. Gino Sferra, who is in

the market for an SUV, said he

hopes vehicle safety systems

are also improving. “I don’t

think of my car as a place to be

entertained,” said Mr. Sferra, a

32-year-old technology consul-

tant in San Antonio.

Outcome’s ex-President Shradha Agarwal and ex-CEO Rishi Shah

in 2017, when the company said its valuation was over $5 billion.

OUTCOME HEALTH

A

Agarwal, Shradha.......B
Andemariam, Biree....A
Arnault, Bernard.........B

B

Bannister, Barry.......B

C

Cappelleri, Frank.......B
Chung, Jeff..................B
Culp, Larry...................B

D

Devitt, Scott.............B
Dybeck Happe, Carolina
B

F

Fisher, Jake.................B

G

Grant, Lewis..............B

H-J

Himmelberg, CharlesB

Jablonski, Gary...........B

M

Massing, Georges.......B

Maynard, Ghen...........B

Miller, Jamie...............B

Moonves, Leslie..........B

P

Potter, Simon............B

Purdy, Brad.................B

R

Roberts, John............B

S

Sferra, Gino.................B

Shah, Rishi..................B

Singh, Daleep............B

Strayer, David.............B

V

Vogel, Jim.................B

W

Wenig, Devin............B

John Williams...........B

size to the extreme when it

rolls out its first new vehicle,

the M-Byte, next year in China

with a 48-inch display that

stretches across the entire span

of the dashboard. The company

said it plans to bring the car to

the U.S. in 2021.

Jeff Chung, Byton’s vice

president for digital engineer-

ing, said its research has shown

that drivers divert their gaze

less from the road with a su-

persize display, compared with

one located in the center con-

sole.

“Distraction comes when

you can’t find the information

board. Drivers can call up fea-

tures by tapping and swiping

items on the touch screen or

using the system’s voice-acti-

vated digital assistant.

Byton, a Chinese electric ve-

hicle startup, is taking screen

Continued from page B

Car Makers

Roll Out

Big Screens

Theranos Inc., after a series of

Journal articles raised ques-

tions about its technology and

practices. A federal trial in

that case is scheduled for Au-

gust. The executives have

pleaded not guilty.

Founded in 2006, Outcome

Health hoped to dominate the

business of advertising in doc-

tors’ offices by installing flat

screens to stream pharmaceu-

tical ads.

The company estimated

2016 sales of about $130 mil-

lion, up substantially from $

million four years prior.

By early 2017 it had ac-

quired a top rival, leased a

large downtown Chicago office

building and raised nearly

$500 million of capital—at a

valuation the company said ex-

ceeded $5 billion—from well-

known investors including

Goldman Sachs, Alphabet’s

CapitalG investing unit and

firms led by Mr. Pritzker and

Laurene Powell Jobs, Steve

Jobs’s widow. It had previously

raised $485 million of debt fi-

nancing.

Mr. Shah became a star on

the Chicago startup scene and

in Democratic politics as he

showered politicians with hun-

dreds of thousands of dollars

in donations, according to the

Center for Responsive Politics.

Sens. Chuck Schumer (N.Y.)

and Elizabeth Warren (Mass.),

who is currently running for

president, came to his Chicago

office for meetings in 2017.

Mr. Shah was close to Mr.

Pritzker, also a Democrat. The

two knew each other through a

business leadership group, ac-

cording to people familiar with

the group, before Mr. Pritzker’s

firm invested $50 million in

Outcome.

A spokeswoman for Mr.

Pritzker, who took office in

January, said he stepped back

from his business at the start

of his campaign.

The Journal revealed in Oc-

tober 2017 that the company

had grown in part by charging

pharmaceutical companies for

ads on more screens than it in-

stalled, according to interviews

with former employees and ad-

vertisers, and a review of in-

ternal documents.

A month after the Journal’s

story, Outcome investors sued

the company, alleging they had

been defrauded.

Mr. Shah and Ms. Agarwal

denied wrongdoing. They later

resigned from their positions

and settled, agreeing to give

back most of the $225 million

dividend that they had negoti-

ated for themselves as part of

the investment round raised

just months earlier.

When the Justice Depart-

ment charged Mr. Desai earlier

this month, it also charged two

of his former staffers with con-

spiracy to commit wire fraud.

People familiar with the case

said the three are expected to

plead guilty and cooperate in

the government’s case against

Messrs. Shah and Purdy and

Ms. Agarwal.

After the Journal’s article,

Mr. Desai, 26, left Outcome and

enrolled in the University of

Pennsylvania’s Wharton School

of Business. Mr. Desai faces a

maximum prison sentence of

20 years and his two staffers

maximum sentences of five

years each.

—Dave Michaels contributed

to this article.

complaints about Outcome’s
business practices from two
other executives during his
first week. The next day, Mr.
Shah texted Ms. Agarwal pro-
posing that the company
“quickly cycle” out Mr. Kazi
and the other two executives,
the indictment alleges.
A week later, according to
the indictment, Mr. Shah for-
warded an email to Mr. Desai
with a letter from a whistle-
blower attorney hired by one
of the other executives, saying
that “it appears the company
is artificially inflating” results.
Mr. Kazi departed less than
three weeks after he was hired
and after confronting Mr. Shah
about the company’s practices,
the Journal previously re-
ported. He didn’t respond to a
request for comment.
Mr. Desai has been indicted
on one count of wire fraud by
the Justice Department, which
announced that charge Nov. 14.
The charges against Out-
come’s former executives rep-
resent the latest enforcement
effort aimed at technology
startups that appear to have
adopted a culture of ‘fake it till
you make it.’ Last year, federal
prosecutors filed fraud charges
against the former executives
of blood-testing company

Continued from page B

Ex-Chiefs

Of Startup

Charged

petition from online retailers
grows. Walgreens shares have
been buoyed in recent weeks
by reports of private-equity in-
terest. No such deal appears to
be imminent, people familiar
with the matter say.
CVS stock is little changed
in the past year compared with
a big gain in the S&P 500 in-
dex. The company’s market
capitalization currently stands
at about $100 billion.
The shares closed at $76.
Monday, up 1.7%, after getting
a boost when The Wall Street
Journal reported the news of
Starboard’s interest in CVS.
Some investors have pri-
vately expressed frustration
over rising costs from CVS’s
Omnicare nursing-home phar-
macy business, the lack of a
clear plan for a successor to
Chief Executive Larry Merlo
and the large size of its 16-
member board—a legacy of the
Aetna deal.
Bankers and lawyers who
advise companies facing
threats from activists say the
investors are increasingly tak-
ing stakes in large targets and
engaging with management in-

Continued from page B

stead of immediately going

public with their demands.

More often the investors and

their targets are finding com-

mon ground. Sometimes the

campaigns never surface pub-

licly.

Starboard has a record of

ushering in change at compa-

nies, ranging from eBay Inc. to

Darden Restaurants Inc. Ear-

lier this year, it urged eBay to

exit businesses unrelated to its

core marketplace after taking a

stake in the San Jose, Calif.,

company. On Monday, eBay

agreed to sell its StubHub tick-

eting business for more than

$4 billion.

Starboard in March dropped

its fight to break upBristol-

Myers SquibbCo.’s roughly

$74 billion acquisition of rival

drugmaker Celgene Corp. after

two influential proxy-advisory

firms recommended sharehold-

ers approve it. They did and

the deal closed last week. The

activist investor had argued

the deal was too risky and

done as a defensive move.

Starboard didn’t report a

stake in CVS in its latest quar-

terly filing with the Securities

and Exchange Commission.

Those filings are delayed—the

latest revealed the New York

hedge fund’s holdings as of

Sept. 30—and some informa-

tion may be omitted as inves-

tors can receive confidential

treatment if they are in the

process of building a position.

—Sharon Terlep

contributed to this article.

CVS Stake

Bought by

Activist

Federal regulators have placed few limits on in-car displays. Screens in Tesla’s Model S, left, and Model 3, right.

CARLOS OSORIO/ASSOCIATED PRESS

and he wouldn’t be eligible for

a short-term bonus in the

2020 or 2021 financial years.

Separately, the bank also

said longstanding director

Ewen Crouch has opted not to

seek re-election to the board.

The bank didn’t immediately

respond to questions about

why Mr. Crouch was leaving,

and Mr. Maxsted said his legal

experience and commercial

knowledge had been invalu-

able to the bank.

Recent scandals have hit

other big lenders across Aus-

tralia.

In 2017, Commonwealth

Bank of Australia’s CEO agreed

to resign after the bank was

hit by allegations by the finan-

cial-intelligence agency of

years of compliance breaches

that had allowed its banking

machines to be used for

money laundering by drug

dealers and other criminals.

The bank, the country’s big-

gest by market value, agreed

to settle the case and pay an

$A700 million fine, the biggest

corporate civil penalty ever

paid in Australia.

Last year, the CEO, chair-

man and several board mem-

bers at AMP Ltd., Australia’s

largest wealth-management

company, resigned after the

company acknowledged it had

misled regulators and been

slow to compensate customers

for fees charged for financial

advice it didn’t deliver.

leading,” said Mr. Maxsted.

On Sunday, Westpac said it

was doubling the number of

people dedicated to financial

crime to about 750 and had

closed its LitePay international

fund-transfer product. It was

also taking steps including lift-

ing standards for screening

and cross-industry data shar-

ing and investing in reducing

the human impact of financial

crime. As the issues raised by

the financial-intelligence

agency continue to be investi-

gated, it also said it would

withhold all or part of the

short-term variable bonus for

the full executive team and

several people in its general

management team.

The Australian Transaction

Reports and Analysis Centre’s

case against Westpac is before

the federal court. The agency

is seeking penalties, with each

individual breach potentially

attracting a fine of up to 21

million Australian dollars

(US$14.2 million).

“As CEO I accept that I am

ultimately accountable for ev-

erything that happens at the

bank. And it is clear that we

have fallen well short of what

the community expects of us,

and we expect of ourselves,”

Westpac’s Mr. Hartzer said.

The bank said Mr. Hartzer

had been given 12 months’ no-

tice and would be paid his

fixed pay but unvested bonus

rewards would be forfeited

agency’s claim the breaches

stemmed from executive indif-

ference.

Mr. Maxsted on Tuesday

said that after seeking feed-

back, including from share-

holders, it became clear that

board and management

changes were in the best inter-

est of Westpac.

Current Chief Financial Of-

ficer Peter King will take over

as acting CEO next week, and

Mr. Maxsted said he had

brought forward his retire-

ment to allow an incoming

chairman and the board to

oversee the appointment of a

permanent CEO.

Mr. King has been tasked

with focusing on two immedi-

ate priorities, implementing

the bank’s response to the

charges and to continue exe-

cuting the bank’s broader

strategy, Mr. Maxsted said.

“We are determined to ur-

gently fix these issues and lift

our standards to ensure our

anti-money-laundering and

other financial crime preven-

tion processes are industry

MELBOURNE, Australia—

Westpac BankingCorp.’s chief

executive and chairman are

stepping down as Australia’s

second-largest bank seeks to

steady itself after being ac-

cused of breaching anti-

money-laundering finance

laws millions of times.

Bowing to shareholder

pressure, the bank said Brian

Hartzer will leave after more

than four years as CEO and

managing director. Lindsay

Maxsted, the chairman of al-

most eight years, will retire in

the first half of 2020.

The high-profile departures

are the latest in a string of

cases that have rocked Austra-

lia’s financial industry recently,

pushing regulators to take a

tougher stance on investigat-

ing and punishing companies.

Last week, the govern-

ment’s financial-intelligence

agency accused Westpac of the

biggest breach of the country’s

money-laundering and terror-

ism financing laws in history,

with more than 23 million

breaches that include failing

to detect transfers that may

have been used to facilitate

child exploitation in Asia and

failing to report in a timely

way about $7.5 billion in inter-

national transfers.

The bank has accepted re-

sponsibility for the errors,

though it has denied the

BYROBBM.STEWART

Australian Bank Probe Hits Top Ranks

Authorities found

more than 23 million

breaches of money-

laundering laws.

ANGEL GARCIA/BLOOMBERG NEWS

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