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PARIS—Tiffany& Co.’s un-

derperforming operations are

about to get an overhaul from

one of the world’s most exact-

ing executives, French billion-

aire Bernard Arnault.

With LVMH Moët Hen-

nessy Louis Vuitton SA’s

$16.2 billion purchase of Tif-

fany, announced Monday, Mr.

Arnault plans to pour market-

ing resources into the high

end of Tiffany’s jewelry line,

focusing attention on its high-

carat diamond necklaces

rather than less expensive sil-

ver jewelry. He also wants to

launch new product lines and

improve the performance of

Tiffany’s far-flung network of

321 boutiques in more than 20

countries.

The chief executive is ready-

ing a playbook that he has used

to build some of the world’s

most successful luxury brands

at LVMH, now one of Europe’s

most valuable companies. His

task is to reinvigorate a storied

brand that has been solidly

profitable but whose sales have

stagnated in recent years.

Comparable sales at Tiffany

have declined for two straight

quarters because of a drop in

tourist spending in the U.S.

LVMH is paying all cash for

Tiffany’s shares and will fi-

nance the deal by issuing

bonds. Executives expect it to

close in the middle of next

year following antitrust ap-

proval by the U.S., the Euro-

pean Union and others.

Mr. Arnault’s strategy calls

for labels to benefit from

LVMH’s deep pockets, some-

times for years, to make nec-

essary investments. Mr. Ar-

nault said the purchase of the

high-end jeweler Bulgari in

2011 offered a model for the

Tiffany buy, requiring major

investments in marketing,

boutique design and communi-

cations. Eight years later, the

brand’s revenue has nearly

doubled and its profit has in-

creased fivefold.

Because those investments

take years to bear fruit, Tif-

fany is better off inside LVMH,

away from the glare of inves-

tors scrutinizing the com-

pany’s results, Mr. Arnault

said. LVMH owns 75 brands,

including luxury giants such as

Louis Vuitton and Dior, but

doesn’t disclose the perfor-

mance of individual labels.

“We will plan long-term,”

Mr. Arnault said in an interview.

“Often with American brands

traded on the stock market, the

Please turn to page B

BYMATTHEWDALTON

LVMH

Chief Aims

High With

His Wager

On Tiffany

display screen behind the 17-

inch panel thatTeslaInc. intro-

duced in 2012 on the Model S

sedan.

“The experience that our

customers are familiar with on

their laptop or cellphone—that

rich experience—has really

moved into the vehicle,” said

Gary Jablonski, chief engineer

of connected car technology at

Ford.

Others such asFiat Chrysler

AutomobilesNV,Toyota Motor

Corp.’s Lexus division andBMW

AG have rolled out models re-

cently with display screens mea-

suring 12 inches diagonally or

more, larger than the screen on

the most popular iPad, which

measures 10.2 inches.

The newest Ram trucks from

Fiat Chrysler, for example, have

a 12-inch touch screen display.

SubaruCorp. recently intro-

duced a new Outback wagon

and Impreza sedan with 11.6-

inch displays, a size available on

all but the base models.

The number of vehicles built

in North America with display

screens measuring 7 inches or

more has grown by nearly 75%

in the past five years, to 10.

million from 6.3 million, ac-

cording to data and analytics

firm IHS Markit. The average

size of the screen also has in-

creased, to 7.3 inches from 6.

inches, during that period, the

firm’s data show.

“The trend we see in the in-

dustry is bigger is better,” said

Georges Massing, an executive

atDaimlerAG’s Mercedes-Benz

division who leads its digital ve-

hicle technologies efforts.

Mercedes’s newest multime-

dia system, the MBUX, com-

bines a large touch screen,

measuring up to 12.3 inches on

some models, with a similar-

sized display for gauges that

spans roughly half the dash-

Please turn to page B

When it comes to the media

display in your car, auto makers

are betting big.

Car companies are introduc-

ing bigger screens in their new-

est models. Executives say the

larger displays are needed as

the systems that show naviga-

tional tools, music options and

the like become more sophisti-

cated, and consumers—espe-

cially younger ones—want to

bring more of their digital lives

into the car.

The increased size and func-

tionality, however, have raised

questions about whether out-

size displays help or hinder ef-

forts to curb distracted driving.

Last week, at the Los Ange-

les Auto Show,Ford MotorCo.

was the latest auto maker to

debut a mammoth display: a

15.5-inch touch screen that will

be in the company’s new all-

electric Mustang Mach-E SUV

when it goes on sale late next

year. At that size, it will be the

industry’s second largest in-car

BYBENFOLDY

Car Makers Roll Out Larger Display Screens

Byton, a Chinese electric-vehicle startup, plans to introduce its first new vehicle, the M-Byte, next year in China with a 48-inch display, and to bring it to the U.S. in 2021.

BYTON

good name in court.”

An attorney for Mr. Purdy

called the charges against his

client false and misguided.

According to the indict-

ment, the executives lied to

Outcome’s pharmaceutical

company clients, falsely in-

flated data, caused the com-

pany to charge for more ads

than it could deliver and in-

flated revenue figures.

The indictment offers new

details alleging that the former

executives fielded ethics com-

plaints early in 2017 as they

were raising money from in-

vestors.

It says Ms. Agarwal, 34,

sent Mr. Shah an audio mes-

sage saying that a recently

hired operating chief, Sameer

Kazi, had claimed “that we are

operating an unethical busi-

ness” and that Outcome’s then-

executive in charge of sales

and analytics, Ashik Desai, was

falsifying data.

In her message, Ms. Agar-

wal said Mr. Kazi received

Please turn to page B

fraud and two counts of bank

fraud. Mr. Shah, 33 years old,

also faces two counts of money

laundering and Mr. Purdy, 30,

faces one count of making a

false statement to a bank. On

the most serious charges, the

three each face a maximum

prison sentence of 30 years if

convicted.

The Securities and Ex-

change Commission on Mon-

day also sued the three former

executives, alleging they com-

mitted civil securities fraud.

A lawyer for Mr. Shah said

his client denies the charges

brought by the Justice Depart-

ment and SEC and “looks for-

ward to his day in court and

the opportunity to clear his

name.”

Ms. Agarwal’s attorney said

her client denies prosecutors’

allegations. “Shradha never

committed fraud and never

participated in any conspiracy.

To the contrary, Shradha was

committed to transparency and

integrity at Outcome Health.

She will fight to protect her

Federal prosecutors charged

former executives ofOutcome

Healthwith allegedly falsify-

ing data in a nearly $1 billion

scheme to defraud the com-

pany’s clients and investors,

including Goldman Sachs

Group Inc.,AlphabetInc. and

an investment firm founded by

Illinois Gov. J.B. Pritzker.

The criminal indictments of

the startup’s former chief exec-

utive, Rishi Shah, as well as ex-

president Shradha Agarwal

and previous finance chief

Brad Purdy, conclude a two-

year investigation by the Jus-

tice Department. The case was

sparked by a 2017 Wall Street

Journal report that the com-

pany—which displays pharma-

ceutical ads in doctors’ of-

fices—had misled some

customers with inflated data

and fake reports.

In the indictment unsealed

Monday, the three executives

were each charged with multi-

ple counts of mail and wire

BYROLFEWINKLER

Outcome Health’s Ex-Leaders

Charged With $1 Billion Fraud

INSIDE

S&P3133.64À0.75% S&P FINÀ0.65% S&P ITÀ1.43% DJ TRANSÀ1.51% WSJ $ IDXÀ0.02% LIBOR 3M 1.919 NIKKEI (Midday)23431.74À0.60% See more at WSJ.com/Markets

On Monday, Charles Schwab

said it agreed to buy smaller

rival TD Ameritrade in a stock-

swap transaction valued at

about $26 billion.

Registered investment ad-

visers, or RIAs, rely on broker-

ages including Schwab, TD

Ameritrade and Fidelity In-

vestments to execute trades,

hold clients’ assets and per-

form related services such as

record-keeping, a business

known as custody.

The $26 billion merger

would create a behemoth in

that world. A combined

Schwab-TD Ameritrade would

have nearly $2.1 trillion of ad-

visers’ assets in custody, or

around 51% of the market, ac-

cording to estimates by Cerulli

Associates.

TheNo.2playerinthe

space, Fidelity Investments,

has about $932 billion in RIA

assets, or less than a quarter

of the market, Cerulli esti-

mates.

That scale helped drive the

sharp gains in the shares of

both Schwab and TD Ameri-

trade last week, but it has also

sparked worries about deterio-

rating service and less choice

for advisers.

“The adviser community is

not particularly upbeat about

this news,” said Michael Kit-

ces, a partner and the director

of wealth management at Pin-

nacle Advisory Group, which

manages about $2 billion for

its clients. “There’s not a lot of

upside that’s visible to them.”

On a Monday conference

call with analysts, Schwab

President and Chief Executive

Walt Bettinger said: “We’re

very confident that...the com-

bined organization will remain

the premier custodian for in-

dependent investment advis-

ers. And I think that as the

dust settles, independent in-

vestment advisers will agree

with that assessment.”

A TD Ameritrade spokes-

woman referred requests for

comment to Schwab, which re-

ferred a reporter to execu-

tives’ comments on the confer-

ence call.

Schwab is currently the big-

gest RIA custodian, with

around $1.5 trillion in assets

and more than 7,500 financial

advisers. Schwab helped the

financial-adviser industry gain

momentum in the 1990s by

creating the Schwab Advisor

Please turn to page B

Wall Street has roared its

approval forCharles Schwab

Corp.’s plan to buyTD Ameri-

trade HoldingCorp., but the

proposed deal isn’t sitting well

with one key group: the finan-

cial advisers who park their

clients’ money with the big

online brokerages.

BYALEXANDEROSIPOVICH

Schwab-TD Deal Upsets Big Clients

Plan sparks fear that

services will decline

after large brokerages

complete merger

merits of the deal and after

the Woonsocket, R.I., company

in February issued a downbeat

earnings projection for the

year due to challenges in its

pharmacy-benefits and long-

term-care businesses.

The shares went on to re-

bound sharply as CVS reported

a string of unexpectedly strong

financial results, and research

analysts have taken a more fa-

vorable view.

Revenue in the third quarter

rose to $64.8 billion, CVS said

earlier this month, exceeding

analyst expectations. Its busi-

ness that offers pharmacy-ben-

efit services to employers and

others had revenue of $36 bil-

lion in the quarter, up about

6% from a year earlier. Its re-

tail business, filling prescrip-

tions and selling a range of

merchandise, recorded a reve-

nue increase of 3% to $21.5 bil-

lion.

Shares of CVS rival Wal-

greens Boots Alliance Inc. have

slumped about 25% in the past

year as revenue from prescrip-

tion-drug sales slows and com-

Please turn to page B

Activist investorStarboard

ValueLP has taken a stake in

CVS HealthCorp. and held

talks with the drugstore-and-

insurance giant’s management,

according to people familiar

with the matter.

The stake appears to be rel-

atively small, and the people

said the talks, held recently,

are amicable. How much Star-

board currently owns and what

it has discussed with the com-

pany couldn’t be learned. But

Starboard is one of the top ac-

tivist investment firms and its

presence in a stock usually

causes a company to sit up and

take notice.

CVS shares have been on a

roller-coaster ride since the

company acquired health in-

surer Aetna Inc. for nearly $

billion almost a year ago. The

deal married CVS’s sprawling

drugstore network and phar-

macy-benefit manager with

one of the nation’s largest

health insurers.

The stock fell sharply amid

early skepticism about the

BYCORRIEDRIEBUSCH

Activist Investor Buys

Stake in CVS Health

Largest displays available in current and pending U.S. cars.

BytonM-Byte*

TeslaModelS,ModelX

FordMustangMach-E*

TeslaModel

LexusRX

Mercedes-BenzGLS,GLE

BMWX5,X6,

48.0 inches

17.

15.

15.

12.

12.

12.

Number of vehicles made in

North America with center

displays larger than 7 inches

12 million vehicles

0

2

4

6

8

10

’152014 ’16 ’17 ’18 ’

Largedisplayscreensincarsarebecomingmorecommon.

*Vehicle is not yet for sale

Source: IHS Markit