The SEC might have lost one of its best tools for cracking down on securities fraud, but it’s hardly toothless.

Since 2010, the SEC has been able to try securities fraud cases in front of independent administrative law judges, or ALJs. On June 27, though, the Supreme Court decided in favor of the defendant in SEC vs. Jarkesy, ruling that trials before ALJs violate defendants’ Seventh Amendment right to a trial by jury. Going forward, the SEC will need to hold securities fraud trials before a federal judge and a jury.

The Jarkesy decision will make it more onerous for the SEC to try securities fraud cases, Mark Bini, a former federal and state prosecutor and a partner at law firm Reed Smith, told CFO Brew. And it may have broader implications for other federal agencies that have used ALJs, like OSHA and the EPA, he said, calling it “a case that [CFOs] should watch with interest.”

But the SEC came prepared; keep reading.—CV

Here’s the snag: Controllers spend a whopping 70% of their time on tactical blocking and tackling and just 30% on proactive strategy. What if controllers could spend their precious time forecasting how they can save your company 10% of $100 million?

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Set your A/R process on easy mode.

Starbucks is getting a new head honcho.

Chipotle CEO Brian Niccol is making the leap from pinto to coffee beans. He’ll be taking over Starbucks’s top spot on September 9, the Wall Street Journal reported Tuesday. Starbucks’s CFO Rachel Ruggieri will act as interim CEO until then.

The news came as a surprise to many. Starbucks’s CEO, Laxman Narasimham, had the imprimatur of Howard Schultz, the executive who led the chain to prominence throughout the 1990s and 2000s. But Narasimham’s tenure, which began in March 2023, was marked by sluggish sales. Starbucks cut its earnings guidance twice this year, and its shares have fallen 25% in the past 12 months. The company’s China business has faltered as it faced competitors like Luckin Coffee.

Starbucks customers have also complained about long lines, which a Bloomberg article suggested were caused by understaffing amid Narasimham’s “productivity push.” And activist investors have emerged, with Elliott Investment Management acquiring a significant portion of Starbucks’s stock—though the activist hedge fund had not been part of Niccol’s hiring process, the Wall Street Journal reported.

Keep reading.—CV

New international mega corporate behemoth just dropped.

Mars, the company behind M&M’s and Snickers, as well as pet brands like Iams and Whiskas, will acquire snackmaker Kellanova, which owns Cheez-It and Pringles, for $35.9 billion in cash, in what is expected to be one of the largest food industry mergers since chocolate and peanut butter met cute. This is what it must feel like when two family dynasties have a super lavish wedding (with really good snacks).

“This is a truly historic combination with a compelling cultural and strategic fit,” Steve Cahillane, chair, president, and CEO of Kellanova, said in a statement. “Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision.”

Kellanova formed last year after food giant Kellogg’s separated its North American cereal businesses, leaving its cereal segment under WK Kellogg Co. and snack foods under the newly-formed Kellanova. Mars, meanwhile, bought Kind North America, the maker of Kind Bars, in 2020, but it’s otherwise best known for its chocolate candies, like M&M’s and Twix.

Keep reading.—NP

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Only 13% of organizations train their managers on generational characteristics. It seems like a missed opportunity since a multi-generational workforce offers multiple possibilities for new success.

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