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Businesses

Uber Will Pay $20 Million For Exaggerating Drivers' Earnings (engadget.com) 44

Uber is paying $20 million to settle allegations that it duped people into driving for its ride-hailing service with false promises about how much they would earn and how much they would have to pay to finance a car. From a report: The FTC claimed that Uber was advertising an annual median income of over $90,000 per year for uberX drivers in New York and more than $74,000 for uberX drivers in San Francisco. But, as the commission found out, less than 10 percent of all drivers in those cities actually make that much. The complaint also alleges that Uber was inflating the hourly earnings on job boards like Craigslist. New drivers who financed a new car through Uber's Vehicle Solutions Program found out the company's claims were too good to be true as well. Although Uber told new drivers they would be able to lease a new car for around $119 per week, the actual lease rates never dipped below $200 from late 2013 to April 2015. And, despite its promise of delivering "the best financing options available," it turns out that Uber's rates were actually worse than consumers with similar credit scores could have gotten elsewhere. Adding insult to overpriced injury, Uber tacked on mileage limits to lease agreements that were advertised with unlimited mileage.
Crime

South Korean Court Dismisses Arrest Warrant For Samsung Chief (reuters.com) 17

An anonymous reader quotes a report from Reuters: A South Korean court on Thursday dismissed an arrest warrant against the head of Samsung Group, the country's largest conglomerate, amid a graft scandal that has led to the impeachment of President Park Geun-hye. But the reprieve for Jay Y. Lee, 48, may only be temporary, as the special prosecutor's office said it would pursue the case. Lee, who has led Samsung since his father, Lee Kun-hee, suffered a heart attack in 2014, was still likely to face the same charges of bribery, embezzlement and perjury, legal analysts said, even if he is not detained. The special prosecutor's office said it would be continuing its probe but had not decided whether to make another arrest warrant request, and the setback would not change its plans to investigate other conglomerates. Spokesman Lee Kyu-chul said the prosecution was unconvinced by the Samsung chief's argument that he was a victim of coercion due to pressure from Park. The office has accused Lee of paying multi-million dollar bribes to Park's confidant, Choi Soon-sil, the woman at the heart of the scandal, to win support from the National Pension Service for a controversial 2015 merger of two Samsung Group affiliates. The merger helped cement Lee's control over the smartphones-to-biopharmaceuticals business empire.
Facebook

Zuckerberg Sues Hundreds of Hawaiians To Force Property Sales To Him (msn.com) 264

mmell writes: Apparently, owning 700 acres of land in Hawaii isn't enough -- Mark Zuckerberg, founder of Facebook, has filed suit to force owners of several small parcels of land to sell to the highest bidder. The reason? These property owners are completely surrounded by Zuckerberg's land holdings and therefore have lawful easement to cross his property in order to get to theirs. Many of these land owners have held their land for generations, but seemingly Mr. Zuckerberg can not tolerate their presence so close to his private little slice of paradise. Landowners such as these came to own their land when their ancestors were "given" the land as Hawaiian natives. If successful in his "quiet title" court action, Mr. Zuckerberg will finally have his slice of Hawaii's beaches and tropical lands without having to deal with the pesky presence of neighbors who were on his land before he owned it. Who knew that Hawaiians were just another kind of Native Americans? CNBC reports: "The cases target a dozen small plots of so-called 'kuleana' lands that are inside the much larger property that Zuckerberg bought on Kauai. Kuleana lands are properties that were granted to native Hawaiians in the mid-1800. One suit, according to the Star-Advertiser, was filed against about 300 people who are descendants of an immigrant Portuguese sugar cane plantation worker who bought four parcels totaling two acres of land in 1894. One of that worker's great-grandchildren, Carlos Andrade, 72, lived on the property until recently, the paper said. But the retired university professor told the Star-Advertiser that he is helping Zuckerberg's case as a co-plaintiff in an effort to make sure the land is not surrendered to the county if no one in his extended clan steps up to take responsibility for paying property taxes on the plots."
Government

Julian Assange Will Not Hand Himself In Because Chelsea Manning's Release Won't Happen Immediately, Lawyer Says (independent.co.uk) 536

President Obama commuted Chelsea Manning's prison sentence yesterday, reducing her time required to serve behind bars from 35 years to just over seven years. Prior to the commutation, WikiLeaks' Julian Assange pledged to surrender himself to U.S. authorities if Manning was pardoned. Roughly 24 hours have passed since the news broke and it appears that Assange will not hand himself in to the Department of Justice. The Independent reports: Mr Assange's lawyers initially seemed to suggest that promise would be carried through -- telling reporters that he stood by his earlier comments -- but it appears now that Mr Assange will stay inside the embassy. The commitment to accept extradition to the U.S. was based on Ms Manning being released immediately, Mr Assange's lawyer told The Hill. Ms Manning won't actually be released until May -- to allow for a standard 120-day transition period, which gives people time to prepare and find somewhere to live, an official told The New York Times for its original report about Ms Manning's clemency. "Mr. Assange welcomes the announcement that Ms. Manning's sentence will be reduced and she will be released in May, but this is well short of what he sought," Barry Pollack, Assange's U.S.-based attorney, told the site. "Mr. Assange had called for Chelsea Manning to receive clemency and be released immediately."
Education

College Fires IT Admin, Loses Access To Google Email, Successfully Sues IT Admin For $250K (theregister.co.uk) 270

An anonymous reader quotes a report from The Register: Shortly after the American College of Education (ACE) in Indiana fired IT administrator Triano Williams in April, 2016, it found that it no longer had any employees with admin access to the Google email service used by the school. In a lawsuit [PDF] filed against Williams in July, 2016, the school alleges that it asked Williams to return his work laptop, which was supposed to have the password saved. But when Williams did so in May that year, the complaint says, the computer was returned wiped, with a new operating system, and damaged to the point it could no longer be used. ACE claimed that its students could not access their Google-hosted ACE email accounts or their online coursework. The school appealed to Google, but Google at the time refused to help because the ACE administrator account had been linked to William's personal email address. "By setting up the administrator account under a non-ACE work email address, Mr Williams violated ACE's standard protocol with respect to administrator accounts," the school's complaint states. "ACE was unaware that Mr Williams' administrator account was not linked to his work address until after his employment ended." According to the school's court filing, Williams, through his attorney, said he would help the school reinstate its Google administrator account, provided the school paid $200,000 to settle his dispute over the termination of his employment. That amount is less than half the estimated $500,000 in harm the school says it has suffered due to its inability to access its Google account, according to a letter from William's attorney in Illinois, Calvita J Frederick. Frederick's letter claims that another employee set up the Google account and made Williams an administrator, but not the controlling administrator. It says the school locked itself out of the admin account through too many failed password attempts. Williams, in a counter-suit [PDF] filed last month, claims his termination followed from a pattern of unlawful discrimination by the school in the wake of a change in management. Pointing to the complaint she filed with the court in Illinois, Frederick said Williams wrote a letter [PDF] to a supervisor complaining about the poor race relations at the school and, as a result of that letter, he was told he had to relocate to Indianapolis.
Oracle

Labor Department Sues Oracle For Paying White Men More (usatoday.com) 305

An anonymous reader quotes a report from USA Today: Oracle is being sued by the Labor Department for paying white men more than their counterparts and for favoring Asian workers when recruiting and hiring for technical roles. The administrative lawsuit is the latest from the Labor Department to take aim at the human resources practices of major technology companies. The Labor Department warned the lawsuit could cost Oracle hundreds of millions in federal contracts. Oracle makes software and hardware used by the federal government. "The complaint is politically motivated, based on false allegations, and wholly without merit," Oracle spokesman Deborah Hellinger said in a statement. "Oracle values diversity and inclusion, and is a responsible equal opportunity and affirmative action employer. Our hiring and pay decisions are non-discriminatory and made based on legitimate business factors including experience and merit." The lawsuit is the result of an Office of Federal Contract Compliance Programs review of Oracle's equal employment opportunity practices, the Labor Department said. According to the lawsuit, Oracle America paid white male workers more, leading to pay discrimination against women, African American and Asian employees. The Labor Department also accused Oracle of favoring Asians for product development and other technical roles, resulting in discrimination against non-Asian applicants. Oracle refused to comply with the Labor Department's investigation, which began in 2014, such as refusing to provide compensation data for all employees, complete hiring data for certain business lines and employee complaints of discrimination, according to the federal agency.
Businesses

US Antitrust Agency Sues Qualcomm Over Patent Licensing (reuters.com) 58

Qualcomm shares have plunged after the U.S. Federal Trade Commission filed a lawsuit against the company on Tuesday, accusing the company of using "anticompetitive" tactics to maintain its monopoly on a key semiconductor used in mobile phones. Reuters reports: The FTC, which works with the Justice Department to enforce antitrust law, said that San Diego-based Qualcomm used its dominant position as a supplier of certain phone chips to impose "onerous" supply and licensing terms on cellphone manufacturers and to weaken competitors. Qualcomm said in a statement that it would "vigorously contest" the complaint and denied FTC allegations that it threatened to withhold chips in order to collect unreasonable licensing fees. In its complaint, the FTC said the patents that Qualcomm sought to license are standard essential patents, which means that the industry uses them widely and they are supposed to be licensed on fair, reasonable and non-discriminatory terms. The FTC complaint also accused Qualcomm of refusing to license some standard essential patents to rival chipmakers, and of entering into an exclusive deal with Apple Inc. The FTC asked the U.S. District Court for the Northern District of California in San Jose to order Qualcomm to end these practices.
Government

President Obama Commutes Chelsea Manning's Sentence (theverge.com) 788

The New York Times is reporting that President Obama has commuted Chelsea Manning's sentence. What this translates to is a reduced sentence for Manning, from 35 years to just over seven years. Since Manning has already served a majority of those years, she is due to be released from federal custody on May 17th. The Verge reports: While serving as an intelligence analyst in Iraq, Manning leaked more than 700,000 documents to Wikileaks, including video of a 2007 airstrike in Baghdad that killed two Reuters employees. In 2013, Manning was sentenced to 35 years in prison for her role in the leak and has been held at the U.S. Disciplinary Barracks at Fort Leavenworth for the past three years. Julian Assange, who has long been sought by U.S. and EU authorities for extradition on Swedish rape charges, had previously pledged to surrender himself to U.S. authorities if Manning was pardoned. Born Bradley Manning, Chelsea announced her gender transition the day after the verdict was handed down. "I am Chelsea Manning. I am a female," she said in a statement. "Given the way that I feel, and have felt since childhood, I want to begin hormone therapy as soon as possible." Obtaining the resulting medical treatments was extremely difficult for Manning, and was the subject of significant and sustained activism. After a lawsuit, Manning was approved for hormone therapy in 2015. In September 2016, she launched a hunger strike, demanding access to gender reassignment surgery; the military complied five days later.
Transportation

Uber Sues City of Seattle To Block Landmark Driver Union Ordinance (geekwire.com) 116

Seattle's landmark law that lets drivers for ride-hailing companies decide if they want to bargain collectively was set to go into effect today, but an Uber subsidiary has sued to block key rules of the ordinance governing which drivers get to vote on unionization and other key rules. From a report: Uber subsidiary Rasier filed a petition in King County Superior Court Tuesday to block recently-published rules from Seattle's department of Finance and Administrative Services that cover issues like which drivers get a say in whether they want to unionize, working conditions subject to bargaining and how an organization gets certified to represent drivers exclusively. In court documents, Uber called the city's process flawed and asked the court to suspend the new rules. Uber wants the city to go back and tweak the rules so that they better reflect driver conditions in the ride-hailing industry. "The City failed to provide comprehensive rules and disregarded the facts and circumstances of drivers and the industry," according to Uber's petition. "Moreover, the Cityâ(TM)s rules are inconsistent with fundamental labor law principles ensuring every worker has a voice in whether to be represented by a labor organization."
Businesses

Facebook's Price Tag For Oculus Actually $3 Billion, Zuckerberg Reveals in Court (cnbc.com) 48

Facebook CEO Mark Zuckerberg revealed in court testimony Tuesday that the company actually paid $3 billion to buy Oculus. From a report on CNBC: His testimony came in a Dallas courtroom, when game maker ZeniMax alleges that Oculus, bought by Facebook in 2014, stole the company's intellectual property. ZeniMax's attorney pressed Zuckerberg on the total Facebook paid for the company. Zuckerberg revealed that beyond the $2 billion price tag, that was widely reported, Facebook paid an additional $700 million to retain employees and another $300 million earnout for hitting key milestones. Nearly three years after Oculus' acquisition Zuckerberg defended against allegations that Oculus stole ZeniMax's intellectual property, also explaining his interest in VR and how it fits into his vision for Oculus.
Businesses

Oculus Accused of Destroying Evidence, Zuckerberg To Testify In $2 Billion Lawsuit (arstechnica.com) 136

An anonymous reader quotes a report from Ars Technica: ZeniMax Media, the parent company of both Bethesda Softworks and Id Software, says it will prove at trial that John Carmack and others at Oculus stole trade secrets to "misappropriate" virtual reality technology that was first developed while Carmack was working at Id Software. What's more, ZeniMax is now accusing Oculus of "intentional destruction of evidence to cover up their wrongdoing." Mark Zuckerberg, CEO of Oculus parent company Facebook, is scheduled to respond to those accusations in testimony starting tomorrow, according to a report by Business insider. ZeniMax's statement comes after Carmack testified at trial last week, saying the case was "ridiculous and absurd." His testimony echoed Oculus' initial reaction when ZeniMax's accusations first surfaced in 2014. In court filings leading up to the trial, ZeniMax detailed its case that Carmack, while still an employee at Id Software, "designed the specifications and functionality embodied in the Rift SDK and directed its development." Carmack's technology and guidance allegedly "literally transformed" Oculus founder Palmer Luckey's early Rift prototype from a "primitive virtual reality headset" that was "little more than a display panel." Carmack allegedly used "copyrighted computer code, trade secret information, and technical know-how" from his time at ZeniMax after he moved to Oculus as CTO in 2013. As the trial began last week (as reported by a Law360 summary, registration required), Carmack told the court of his development of a virtual reality demo for Doom 3 in 2012 and his search for a VR headset that would be suitable to run it. That's when he says he got in touch with Luckey, leading to the now legendary E3 2012 demo that introduced Oculus to the public. ZeniMax is seeking $2 billion in damage, which matches the value that Facebook paid for Oculus in 2014. The trial is expected to last three weeks.
China

China, Europe Drive Shift To Electric Cars as US Lags (reuters.com) 466

Electric cars will pick up critical momentum in 2017, many in the auto industry believe - just not in North America. Tighter emissions rules in China and Europe leave global carmakers and some consumers with little choice but to embrace plug-in vehicles, fuelling an investment surge, said industry executives gathered in Detroit this past week for the city's annual auto show. From a report: "Car electrification is an irreversible trend," said Jacques Aschenbroich, chief executive of auto supplier Valeo, which has expanded sales by 50 percent in five years with a focus on electric, hybrid, connected and self-driving cars. In Europe, green cars benefit increasingly from subsidies, tax breaks and other perks, while combustion engines face mounting penalties including driving and parking restrictions. China, struggling with catastrophic pollution levels in major cities, is aggressively pushing plug-in vehicles. Its carrot-and-stick approach combines tens of billions in investment and research funding with subsidies, and regulations designed to discourage driving fossil-fueled cars in big cities. The road ahead for electric vehicles (EVs) in the United States, however, could have more hairpin curves.
Businesses

South Korea Prosecutors Seek Arrest of Samsung Chief Jay Y Lee For Bribery (cnbc.com) 38

South Korea's special prosecutors' office said it will seek a warrant to arrest the head of Samsung Group, the country's biggest conglomerate, accusing him of paying multi-million dollar bribes to a friend of President Park Geun-hye. From a report: Samsung Group chief Jay Y. Lee was questioned for 22 straight hours last week as investigators probed a corruption scandal that resulted in parliament impeaching Park last month. The special prosecutors' office accused Lee of paying bribes totaling 43 billion won ($36.42 million) to Choi Soon-sil, a friend of the president who is at the center of scandal. Lee, who became the de facto head of the Samsung Group after his father, Lee Kun-hee, suffered a heart attack in 2014, was also accused of embezzlement and perjury in the prosecution's application for an arrest warrant.
The Courts

How A Professional Poker Player Conned a Casino Out of $9.6 Million (washingtonpost.com) 401

Phil Ivey is a professional poker player who's won ten World Series of Poker bracelets -- but he's also got a new game. An anonymous reader write: In 2012, Ivey requested that the Borgata casino let him play baccarat with an assistant named Cheng Yin Sun while using a specific brand of playing cards -- purple Gemaco Borgata playing cards -- and an automatic shuffler. He then proceeded to win $9.6 million over four visits. The pair would rotate certain cards 180 degrees, which allowed them to recognize those cards the next time they passed through the deck. (They were exploiting a minute lack of a symmetry in the pattern on the backs of the cards...)

But last month a U.S. district judge ruled that Ivey and his partner had a "mutual obligation" to the casino, in which their "primary obligation" was to not use cards whose values would be known to them -- and ordered them to return the $9.6 million [PDF]. "What this ruling says is a player is prohibited from combining his skill and intellect and visual acuity to beat the casino at its own game," Ivey's attorney told the AP, adding that the judge's ruling will be appealed.

The judge also ruled Ivey had to return the money he later won playing craps with his winnings from the baccarat game -- though the judge denied the casino's request for restitution over the additional $250,000 worth of goods and services they'd "comped" Ivey during his stay.
Iphone

Apple/Samsung Patent Case Returns To Court To Revisit Infringement Damages (macrumors.com) 81

An anonymous reader quotes MacRumors: The U.S. Court of Appeals for the Federal Circuit on Thursday reopened a longstanding patent lawsuit related to Samsung copying the design of the iPhone nearly six years ago...according to court documents filed electronically this week... Apple's damages were calculated based on Samsung's entire profit from the sale of its infringing Galaxy smartphones, but the Supreme Court ruled it did not have enough info to say whether the amount should be based on the total device, or rather individual components such as the front bezel or the screen. It will now be up to the appeals court to decide.

Apple last month said the lawsuit, ongoing since 2011, has always been about Samsung's "blatant copying" of its ideas, adding that it remains optimistic that the U.S. Court of Appeals will "again send a powerful signal that stealing isn't right."

Security

Student Hacker Faces 10 Years in Prison For Spyware That Hit 16,000 Computers (vice.com) 179

An anonymous reader quotes Motherboard: A 21-year-old from Virginia plead guilty on Friday to writing and selling custom spyware designed to monitor a victim's keystrokes. Zachary Shames, from Great Falls, Virginia, wrote a keylogger, malware designed to record every keystroke on a computer, and sold it to more than 3,000 people who infected more than 16,000 victims with it, according to a press release from the U.S. Department of Justice.

Shames, who appears to be a student at James Madison University, developed the first version of the spyware while he was still a high school student in 2013, "and continued to modify and market the illegal product from his college dorm room," according to the feds... While the feds only vaguely referred to it as "some malicious keylogger software," it appears the spyware was actually called "Limitless Keylogger Pro," according to evidence found by a security researcher who asked to remain anonymous... According to what appears to be Shames Linkedin page, he was an intern for the defense contractor Northrop Grumman from May 2015 until August 2016.

The Department of Justice announced that he'll be sentenced on June 16, and faces a maximum of 10 years in prison.
Businesses

Someone Is Trying to Sell Those Stolen Three-Screen Razer Laptops in China (geek.com) 49

Just a few days ago, Razer's awesome Project Valerie laptops -- the one with three 4K displays -- were stolen. Now it looks like whoever stole them is trying to sell them. From a report: It turns out that the thief (or thieves) didn't just nab one Project Valerie prototype. They actually got ahold of a pair. Razer CEO Min-Liang Tan understandably wants them back, really, really badly. The company was willing to offer $25,000 to anyone who could offer information that led to the prototypes' return. So where did the laptops end up? Somewhere behind the Great Wall, apparently. Whoever has them isn't trying to quietly fence them in some dark Beijing alleyway, either. They've actually been listed on the immensely popular Chinese e-commerce site Taobao -- where they were spotted by writers at Engadget Chinese and Wccftech.
United States

Congress Will Consider Proposal To Raise H-1B Minimum Wage To $100,000 (arstechnica.com) 538

An anonymous reader quotes a report from Ars Technica: President-elect Donald Trump is just a week away from taking office. From the start of his campaign, he has promised big changes to the US immigration system. For both Trump's advisers and members of Congress, the H-1B visa program, which allows many foreign workers to fill technology jobs, is a particular focus. One major change to that system is already under discussion: making it harder for companies to use H-1B workers to replace Americans by simply giving the foreign workers a raise. The "Protect and Grow American Jobs Act," introduced last week by Rep. Darrell Issa, R-Calif. and Scott Peters, D-Calif., would significantly raise the wages of workers who get H-1B visas. If the bill becomes law, the minimum wage paid to H-1B workers would rise to at least $100,000 annually, and be adjusted it for inflation. Right now, the minimum is $60,000. The sponsors say that would go a long way toward fixing some of the abuses of the H-1B program, which critics say is currently used to simply replace American workers with cheaper, foreign workers. In 2013, the top nine companies acquiring H-1B visas were technology outsourcing firms, according to an analysis by a critic of the H-1B program. (The 10th is Microsoft.) The thinking goes that if minimum H-1B salaries are brought closer to what high-skilled tech employment really pays, the economic incentive to use it as a worker-replacement program will drop off. "We need to ensure we can retain the world's best and brightest talent," said Issa in a statement about the bill. "At the same time, we also need to make sure programs are not abused to allow companies to outsource and hire cheap foreign labor from abroad to replace American workers." The H-1B program offers 65,000 visas each fiscal year, with an additional 20,000 reserved for foreign workers who have advanced degrees from US colleges and universities. The visas are awarded by lottery each year. Last year, the government received more than 236,000 applications for those visas.
Advertising

Drone Maker Lily Robotics Faked Promotional Video, Gets Sued For False Advertising and Misleading Business Practices (theregister.co.uk) 38

Dotnaught quotes a report from The Register: Lily Robotics says its decision on Thursday to shut down and return pre-order payments for a never-delivered drone, which came on the same day that San Francisco District Attorney George Gascon charged the company with false advertising and misleading business practices, was purely coincidental. According to a source familiar with the complaint filed against the company, Lily Robotics has known about the DA's investigation for several months. On the strength of a promotional video on YouTube in May 2015, embedded below, Lily Robotics raised more than $34 million in pre-order sales over the course of that year for a drone called Lily Camera. The flying gadget, when built, would be capable of being launched with a throw, following people, and recording them. But after pushing the delivery date back multiple times, Lily Robotics has yet to ship a single drone to its 60,000 prospective customers, according to the lawsuit filed against the company. In theory, Lily Robotics could face a fine of more than a hundred million dollars, depending upon the outcome of a trial, if it comes to that. The company faces potential fines for at least two business code violations subject to a civil penalty of $2,500 per violation, and there are some 60,000 individuals affected. In practice, however, such fines are usually orders of magnitude less, particularly if both sides agree on a settlement. The complaint against Lily, obtained by The Register, alleges that the company knowingly misled customers by creating a promotional video that purported to show video footage captured with a Lily drone prototype. "In fact, none of the video in the Promotional Video was shot by a Lily Camera," the complaint says. "Most notably, the POV footage used in the promotional video was filmed using a professional camera drone called the DJI Inspire." Among the Lily Camera prototypes present at the video shoot, the complaint says, the ones that could actually record video were able to do so because they had Go-Pro cameras mounted on them.
The Internet

Virginia 'Broadband Deployment Act' Would Kill Municipal Broadband Deployment (arstechnica.com) 200

Virginia lawmakers are considering a bill called the "Virginia Broadband Deployment Act," but instead of resulting in more broadband deployment, the legislation would make it more difficult for municipalities to offer Internet service. From a report: The Virginia House of Delegates legislation proposed this week by Republican lawmaker Kathy Byron would prohibit municipal broadband deployments except in very limited circumstances. Among other things, a locality wouldn't be allowed to offer Internet service if an existing network already provides 10Mbps download and 1Mbps upload speeds to 90 percent of potential customers. That speed threshold is low enough that it can be met by old DSL lines in areas that haven't received more modern cable and fiber networks. Even if that condition is met, a city or town would have to jump through a few hoops before offering service. The municipality would have to pay for a "comprehensive broadband assessment," and then issue a request for proposals giving for-profit ISPs six months to submit a plan for broadband deployment. After receiving proposals from private ISPs, the local government would have to determine whether providing grants or subsidies to a private ISP would be more cost-effective than building a municipal broadband network.

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