Dresses, Cruises and Other Signs of Life

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A group of former S.E.C. officials urged Supreme Court justices to “tread carefully” in a new “friend of the court” brief supporting pension funds in a class-action case against Goldman Sachs. The funds argue that Goldman misled them in its corporate statements, and the bank hopes to prevent them being able to bring the case as a group. The ex-regulators warn that a victory for the bank on this would harm market integrity: “Companies and corporate executives can have considerable incentives to maintain a falsehood that is propping up a stock price.”

“Private cases play a crucial police function,” Robert Jackson Jr., an N.Y.U. law professor and former S.E.C. commissioner, told DealBook, arguing that the court should let investors sue as a group.

  • To recap, the funds say Goldman’s statements misled them before a 2010 S.E.C. fraud case, which hit Goldman’s stock price. Lower courts let them sue as a group on the presumption that all investors indirectly rely on company statements when deciding to buy a stock. Goldman says this is wrong and warns of an onslaught of litigation if it loses.

“For the capital markets to work, the people actually putting money in have got to know they are getting good information,” said Lynn Turner, a former chief accountant of the S.E.C. “When you don’t have that, and the information is bad, investors flee, like during the 2008 mortgage finance crisis.” If the Supreme Court rules in favor of Goldman, “we could have another crisis within 10 years, maybe sooner,” he said.

  • Signatories of the brief include Mr. Turner, Mr. Jackson and two former S.E.C. chairmen, William Donaldson and Arthur Levitt Jr., in addition to the former commissioners Bevis Longstreth, Luis Aguilar and Kara Stein. Last month, a different group of former S.E.C. officials filed a brief in support of Goldman. Arguments in the case will be held this month and the justices are expected to rule by late June.


Dogecoin is a cryptocurrency based on a 2013 meme — old in internet years — featuring a perplexed Shiba Inu dog. The token was created to mock crypto culture, but is now worth serious money and embraced by the likes of Elon Musk and Snoop Dogg. As of today, it’s also a way to pay for tickets and merchandise for the N.B.A.’s Dallas Mavericks.

Mark Cuban said the basketball team decided to accept Dogecoin “because we can!” In announcing the move, which DealBook is first to report, the billionaire owner of the team added in a statement, “Sometimes in business you have to do things that are fun.” The transactions will be processed by the crypto payments company BitPay, which has handled Bitcoin purchases for the Mavs since 2019.

  • Dogecoin got a boost during the recent meme-stock frenzy, and businesses have noticed. The crypto A.T.M. company CoinFlip just added the token to its services.

Still confused? “For those of you who would like to learn more about Dogecoin,” Mr. Cuban said, “we strongly encourage you to talk to your teenagers who are on TikTok and ask them about it. They will be able to explain it all to you.”

Deals

  • Apollo agreed to buy Michaels, the crafts retailer, for $5 billion. (NYT)

  • The workplace software company Okta agreed to buy a rival, Auth0, for $6.5 billion. (WSJ)

  • Flipkart, the Indian e-commerce giant owned by Walmart, is reportedly considering going public in the U.S. by merging with a SPAC, with a valuation target of at least $35 billion. (Bloomberg)

Politics and policy

  • A government watchdog found that Elaine Chao, President Donald Trump’s transportation secretary, used her office to help her family’s shipping business, which has ties to China. (NYT)

  • Gov. Andrew Cuomo of New York apologized for his behavior after three women accused him of sexual harassment, but he refused to resign. (NYT)

Tech

  • Kevin Mayer, the former Disney executive and C.E.O. of TikTok, will become chairman of the sports streaming service DAZN. (WSJ)

  • Arizona lawmakers passed a bill to curtail Apple and Google’s efforts to collect commissions on in-app purchases. Separately, Britain’s antitrust regulator opened an investigation into Apple’s App Store practices. (The Verge, C.M.A.)

  • The conservative social network Parler withdrew a lawsuit over Amazon’s canceling its web-hosting agreement, but filed a new one accusing it of trying to “destroy” its business. (Reuters)

Best of the rest

  • Interpol said it has broken up a global criminal network that was selling counterfeit Covid-19 vaccines. (Insider)

  • Jeffrey Epstein’s Manhattan townhouse is reportedly poised to sell for $50 million, down from an asking price of $88 million. (WSJ)

  • “The race to become a Clubhouse influencer” (Recode)

We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com.

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