GRC Report Staff

The U.S. Department of Justice (DOJ) has filed a civil lawsuit against KKR & Co. Inc. and several of its affiliated investment advisors and funds for systematically violating the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), a crucial component of U.S. antitrust law. The complaint, filed in the U.S. District Court for the Southern District of New York, alleges that KKR repeatedly circumvented the premerger review process by withholding and altering key documents and failing to file required premerger notifications for at least 16 transactions between 2021 and 2022.

Imagine trusting a ship’s captain to navigate stormy waters, only to discover their compass is broken. That’s the unsettling reality investors faced when Baker Tilly US, LLP (“Baker Tilly”) repeatedly dropped the ball on audit quality. Today, the Public Company Accounting Oversight Board (PCAOB) announced a $500,000 fine against the firm for systemic failures in its quality control systems—a hefty penalty that underscores the weight of accountability in the world of financial reporting.

The U.S. Department of Labor (DOL) has secured an agreement with JBS USA Food Co., the nation’s largest meat packing processor. The company, which operates across numerous U.S. facilities, has committed to a $4 million fund aimed at assisting individuals and communities impacted by child labor practices. This agreement follows a series of DOL investigations that uncovered unlawful child labor at JBS’s facilities.

You might think that some of Wall Street’s biggest names would have the basics covered, like keeping track of emails and messages they’re legally required to save. But as as the Securities and Exchange Commission (SEC) revealed recently, even financial heavyweights can fumble the fundamentals—at a collective cost of $63.1 million in penalties.

Robinhood, the company that once championed itself as the revolutionary force in making investing accessible to all, is now dealing with the fallout from a significant misstep. Today, the Securities and Exchange Commission (SEC) slapped the fintech giant with a $45 million fine, citing a series of failures to adhere to key securities laws. The fine isn’t just a financial penalty—it’s a clear signal to other broker-dealers and fintech firms: you can’t grow fast without properly managing risk and compliance.

Picture this: a casual round of Candy Crush, a swipe through a dating app, or even the quiet tracking of a pregnancy journey. For millions of users, these seemingly harmless digital interactions may have just become part of a cyber nightmare. Last week, Gravy Analytics, a major location data broker, revealed a data breach that could have leaked precise location data from popular mobile apps, exposing users' private movements—and potentially sensitive locations like military bases and government buildings.

In a significant settlement, Fidelity Brokerage Services LLC (Fidelity) has agreed to pay a $600,000 fine and accept a censure in response to regulatory violations uncovered by the Financial Industry Regulatory Authority (FINRA). This settlement comes after an eight-year lapse in the company’s ability to effectively supervise transactions and the safeguarding of sensitive financial data for international clients.