On February 20, 2007, The Children’s Investment Fund sent a letter to the board of Dutch bank ABN
AMRO requesting that ABN AMRO explore options to merge, sell, or spin-off some of its assets, or even
the whole business. Never before had shareholder activism reached such a scale. As turmoil reigned and
speculation began, the largest bidding war in banking history began over one of Europe’s largest and
oldest banks. (A) Case, 6 pp. (B) Case, 2 pp. Case #08-01. (2008)

On September 22, 2006, Nicholas Maounis, founder of Amaranth Advisors LLC, reported to investors
that his hedge fund had lost approximately 65% of its value (about $6.0 billion of $9.2 billion) since the
end of August 2006. His hope was that, despite these losses, he would be able to convince his investors
to stay the course and not divest; if they divested, then Amaranth would join the annals of hedge fund
history as the largest financial meltdown ever. Looking beyond the local travail of Amaranth to the
potential global disruption of the world financial system, how would the situation play out in the long
term? 10pp. Case #07-09. (2007)

In 1991, Apple, Inc. struck a tax deal with the government of Ireland to pay exceptionally low tax
rates on income earned there. This was contingent on the condition that the California-based
company carry out all of its European operations in Ireland. This tax break has been described by
the European Union as “state aid.” To remedy the situation, the E.U. has ordered Apple to pay
Ireland €13 Billion plus interest (equivalent to $14.5 Billion) for unpaid taxes between the years
2003 and 2014. This decision has left Apple, the United States, and the Republic Ireland
displeased. (A) Case, 13 pp. (B) Case, 4 pp. Case #17-01. (2017)

The famed accounting firm Arthur Andersen fights for its very existence after one of its largest
clients, Enron, falls from the top ranks of the Fortune 500 to bankruptcy in a matter of months.
Investigations by the U.S. Department of Justice and the SEC force Andersen to reveal its role in
the destruction of thousands of Enron-related documents. Andersen CEO Joe Berardino must
find a way to regain the public’s trust in the firm and its audits, as well as convince the
Department of Justice that Andersen should not be prosecuted for its actions in the Enron
collapse. (A) Case, 23 pp. (includes 16 pages of attachments). (B) Case, 10 pp. (includes 7 pages
of attachments). Case #02-05. (2002 & 2004)

On August 15th 2013, Moritz Erhardt was found dead at his student housing. The official cause of death was an epileptic seizure possibly caused by the long hours and lack of rest associated to his work, after pulling “all-nighters” and “magic-roundabouts” for three days in a row during his summer internship in the investment banking area at Bank of America-Merrill Lynch. 22 pp. Case # 13-09 (2013)

In the fall of 2011, Bank of America announced a plan to begin charging customers $5 per month on debit card accounts. The announcement met with sharp public outrage. Due to the backlash, Bank of America was faced with a difficult dilemma: proceed as planned and face a public relations nightmare - or cancel the fee program, lose billions, and be forced to answer to shareholders. (Case #13-04)

One of the country’s oldest banks is embroiled in a scandal involving the laundering of seven to
ten billion dollars. Key players include high level executives who used the failing Russian market
and Russian organized crime to move money from Russia to other countries. While there may be
a lack of a strong legal case against the Bank of New York, a crisis still exists. 6 pp. Case
#00-24. (2000)

The new CEO of Citigroup, Charles Prince, proposes a Five Point Ethics Plan in an attempt to change the
ethics, culture and operations of the company. The plan is a response to significant regulatory scrutiny,
paying out massive legal settlements and a Federal Reserve announcement requiring the company to
refrain from mergers and acquisitions until it has cleaned up internal controls. His plan includes
expanded training, enhanced focus on talent, balanced performance appraisals, improved
communications and strengthened compliance controls. As current key executives leave the company
and experts in ethics are skeptical, many wonder if Citigroup will be able to successfully communicate
this program while it holds back on growth to implement this new culture. 11 pp. Case #06-04. (2006)

Under an environment of increasing suspicion and regulation of “dark pools”, led by the U.S. Securities and Exchange Commission, Credit Suisse’s two dark pools, Crossfinder and Light Pool, were fined US$84.3 million. The executive leadership of Credit Suisse AG were facing a loss of dark pool market share and declining stock price. What should they say to key institutional investors who hope to trade off-market? What should they say to ordinary, small block investors and the general public about these financial structures? 12 pp. Case #17-02. (2017)

The collapse of the energy trading giant Enron has put the focus on accounting firms, and
especially on the amount of consulting being performed for large audit clients. Deloitte &
Touche CEO Jim Copeland convinced the U.S. Securities and Exchange Commission in 2001 to
allow accounting firms to continue to provide consulting services. With the possibility of
increased regulations and governmental interference following Enron, Copeland must decide if
this is still a viable option for his firm. (A) Case, 7 pp. (B) Case, 3 pp. Case #02-14. (2002)

In July 2016, the U.S. Department of Justice announced that it would pursue Deutsche Bank for its role in the creation and sale of mortgage-backed securities in the years leading up to the financial crisis of 2008-2009. By September, press reports indicated the Department of Justice was seeking a $14 billion fine from Deutsche Bank. Business media began speculating on whether this amount could affect the bank’s solvency. Deutsche Bank had paid enormous fines for other transgressions and this $14 billion litigation could potentially threaten the financial condition of the company. Additionally, given Deutsche Bank’s position as a “globally systemic bank,” the fine could affect the economic environment of the entire world. To combat growing speculation surrounding the bank’s survival, Deutsche Bank leaders launched different communication initiatives. This case concentrates on the communication strategies taken by Deutsche Bank’s leadership. 16 pp. Case #17-08. (2017)

The world’s largest producers of fiber channel host adapters is the victim of a stock price
manipulation hoax. In the course of just a few hours, share price falls from $113 to less than $50,
as more than $2 billion in market valuation evaporates. A fictitious press release to Internet Wire,
quickly re-transmitted by Bloomberg News, CNBC, and others, claims that key executives have
resigned and that fourth-quarter earnings will be drastically revised and restated. CEO Paul
Folino must act quickly to prevent the total collapse of his stock on the NASDAQ. (A) Case, 6
pp. (B) Case, 5 pp. Case #02-01. (2002)

Consumer credit reporting company Equifax announced on September 7, 2017, that cyber criminals accessed its databases to obtain private information of 143 million US consumers. CEO Richard Smith faces public scrutiny and ponders his next move to effectively manage the crisis at his company. 12 pp. Case #18-03 (2018)

Since deciding to go public, Google’s once lauded unique and innovative culture has become problematic for the former internet start-up. Unorthodox management practices, lack of corporate governance, increased competition, and regulatory issues hobbled Google’s IPO and continue to plague the company. Additionally, Google’s policy of secrecy leaves its stakeholders with no guidance as to future plans to confront their concerns. Despite its rising stock price since going public, these problems cast doubt on Google’s future business viability. CEO Dr. Eric E. Schmidt and Corporate Marketing VP Cindy McCaffrey must decide how to proceed in the face of mounting criticism and lurking competition. 10 pp. Case #05-03. (2005)

Jefferies & Company, the most rapidly growing medium sized investment bank, quickly became the focus of many ratings agencies upon the collapse of MF Global. While many of the ratings agencies found no need for concern, Egan-Jones concluded the contrary. The little known rating agency published a report downgrading Jefferies’s outlook, sending Jefferies’s stock plummeting downward with no end in sight. (A) case, 7 pp. (B) case, 8 pp. Case #12-06, (2012).

Beginning in the late 1990’s, public accounting firm KPMG marketed and sold tax shelters
specifically designed to help clients evade taxes. When the IRS challenged these tax shelters,
KPMG resisted its investigation. In the face of mounting evidence against the firm, KPMG
eventually realized it had no choice but to cooperate with the Justice Department and try to save
itself from criminal indictment. Late in the summer of 2005, KPMG reached a settlement with
the Department of Justice, which required KPMG to make a public admission of wrongdoing.
This admission paved the way for the Justice Department to file suit against former KPMG
employees involved with the tax shelters. Some argue that KPMG betrayed its former employees.
With the risk of criminal indictment abated, now KPMG must turn its attention to rebuilding the
trust of its partners and its clients. 12 pp. Case #06-06. (2006)

In June 1998, secretive hedge fund LTC suffered substantial losses when its value dropped
10.1%. The fund’s prior success had been too good to be true, and now the sudden loss in value
sent serious warning signs to Wall Street and financial markets around the world. Derivative
instruments used by LTC, in combination with Russian loan defaults and troubled Asian markets,
brought the fund into a crisis mode. The question of who would bail out the fund and at what
expense became a burning controversy for LTC and its investors. 8 pp. Case #00-15. (2000)

Domestic advice and home products maven Martha Stewart is accused of selling nearly 4,000
shares of ImClone Systems, Inc. stock shares, just ahead of a public announcement that the
company’s promising new drug, Erbitux, has failed FDA clinical testing. Accusations of insider
trading, based on her special relationships with ImClone CEO Samuel Waksal and Merrill Lynch
broker Peter Bacanovic, threaten her own company’s reputation, share price, and market position.
Can Martha Stewart Living Omnimedia survive accusations of misconduct or the downfall of its
namesake? (A) Case, 16 pp. (B) Case, 5 pp. Case #02-15. (2002 & 2004)

When two airplanes struck the World Trade Center on September 11, 2001, more than 3,000
Morgan Stanley employees sprang into action. Following an earlier terrorist attack on the Center
in 1993, the company developed an emergency evacuation plan to ensure employees could safely
and quickly exit the building. With all the chaos following the attacks, CEO Phil Purcell had
difficulty in determining if all of the company’s employees had made it out. News was also
traveling around the world that Morgan Stanley was completely destroyed from the bombing.
Purcell must quickly determine how many employees survived and how to inform the world that
Morgan Stanley was still in business. (A) Case, 4 pp. (B) Case, 5 pp. Case #02-04. (2002)

In August of 2016, Mylan Pharmaceutical came under public scrutiny for its highly priced EpiPen, a drug used to treat life threatening allergic reactions. “EpiGate” erupted almost overnight, as EpiPen customers took to social media to voice their frustrations. Mylan was accused of using “greedy robber baron” tactics against a helpless customer base. Mylan issued several price-related reparations to its customers (increased rebates, generic product offerings). A month later, Mylan was still struggling to silence its critics. Why did Mylan’s responses fail to address their concerns? What was missing in Mylan’s strategy? This case illustrates (a) the influence of social media on corporate reputation (b) the difficulties of balancing business strategy and public approval and (c) the principles of successfully responding to negative news media. (A) Case, 7 pp. Case #17-04. (2017)

On September 14, 2005, Northwest Airlines filed for Chapter 11 bankruptcy. During the weeks leadingup to the decision, Northwest was burning through $4 million in cash a day, carried $8.1 billion in long-term debt, and had pension plans underfunded by $3.8 billion. With fuel prices increasing at recordrates, a shortage for demand in the airline industry, and a mechanics strike leaving unfruitfulnegotiations, something had to be done. Under the protection of bankruptcy, CEO Douglas Steenland,believes that Northwest can settle labor issues and reorganize the firm’s cost structure to compete withdiscount airlines. Steenland hopes Northwest can emerge from the bankruptcy stronger than ever. Criticswonder what tactics Northwest might employ to survive this turbulent industry. 8 pp. Case #06-02.(2006)

An assistant broker in the mortgage banking division of a mid-Atlantic regional bank is faced
with the prospect of substituting for a more senior manager on short notice in a public speaking
situation. The case asks students to examine the issues related to the broker’s preparation for the
speaking opportunity, focusing on audience, purpose, and occasion. 2 pp. Case #96-02. (1996)

An investigative report into corporate tax avoidance prompts an increasingly powerful citizen’s group to target Starbucks’ UK operation. Starbucks faces numerous sit-ins and boycotts throughout the UK. Increasing public outcry grabs the attention of Parliament which summons Starbucks’ CFO Tony Alstead to come testify. Austerity measures and complex international tax laws further complicate the matter. As a corporation that prides itself on social responsibility, Starbucks must decide between their duty to minimize tax liabilities (for shareholders) and their promise to serve the communities where they do business. Case #14-2. (A) 9 pp (B) 3 pp

One of the country’s largest insurers and financial institutions faces a lawsuit by some
policyholders for the use of non-Original Equipment Manufacturer parts in the repair of damaged
vehicles. The lawsuit claims State Farm breached its contract by specifying non-OEM parts
(which are known to be inferior to OEM parts) on repair estimates without the consent of the
policyholder. 5 pp. Case #00-08. (2000)

The New York Stock Exchange investigates and fines financial services firm TD Waterhouse for
the inappropriate operation of its online trading system. Waterhouse’s WebBroker system
experienced a number of outages that prevented clients from having trades executed. Since
online trading has grown dramatically in recent years and is expected to continue growing, this
could be a critical juncture for TD Waterhouse if it wants to continue to compete in this market
segment. The company must develop a well-crafted communication strategy to address this
setback with its customers, the public, and other constituencies. 5 pp. Case #01-08. (2001)

Fraudulent customer account management at Wells Fargo has left the company with $185 million in fees and numerous stakeholders demanding answers from top executives. Newly promoted CEO Timothy Sloan is tasked with transforming a poisonous company culture, rebuilding a tarnished brand, and assuring investors of the financial security moving forward. (A) Case, 15 pp. (B) Case, 3 pp. Case #17-12 (2017)

The Coronavirus / COVID-19 crisis of 2020 resulted government restrictions on travel, accompanied by a public loss of confidence in the safety of air transport, all of which led quickly to a decline in revenue for airline companies. American Airlines has implemented a number of important changes, but their survival in an unstable environment and unpredictable consumer market depends on whether these changes are sufficient to ensure safe travel and encourage the flying public to take to the air again. Case #20-02

Robinhood, an online trading platform, has revolutionized the trading industry by the incorporation of payment for order flow (PFOF). The platform has drawn many amateur investors to start investing, especially in cryptocurrencies. Controversies have arisen with the widespread use of the PFOF business model that have called for regulators to step in and possibly make changes. 12 pp. Case #21-08 (2021)

Adidas AG: Kanye West and Corporate Brand Ambassadors Carmolingo, T.; Ingram, B.; Love, A.; and O’Rourke, J. S. (editor)

This case examines the termination of the nine-year partnership between Adidas AG and music artist Kanye West, following West’s antisemitic comments on social media. The case explores the immediate public reaction, the subsequent actions of Adidas, and the financial implications for Adidas. The case also explores the risks and rewards associated with celebrity endorsements in the athletic footwear industry and analyzes the effect of such endorsements on brand reputation. The case concludes by discussing the company’s efforts to recover from the fallout and the ongoing challenges the company faces from shareholders and sneaker buyers. 13 pp.

Case #23-08 (2023).

Keywords: Adidas AG, Kanye West, Yeezy, Celebrity Endorsements, Athletic Footwear Industry, Brand Reputation.