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    Facebook owner Meta forms data-sharing pact with UK banks to counter scams

    Meta says it has worked with U.K. banks NatWest and Metro Bank on an information-sharing agreement to help them prevent customers from falling victim to fraud.
    The company is expanding its Fraud Intelligence Reciprocal Exchange (FIPE) to enable U.K. banks to share information on scams with Meta directly.
    Meta has long faced calls from banks in the U.K. to do more to stop scammers from running rampant on its platforms, which include Facebook, Instagram, and WhatsApp.

    Jakub Porzycki | Nurphoto | Getty Images

    Facebook parent company Meta on Wednesday said that it’s working with two leading banks in the U.K. on an information-sharing arrangement to help protect consumers from fraud.
    Meta said it was expanding its Fraud Intelligence Reciprocal Exchange (FIPE) to enable U.K. banks to directly share information with the social media giant, in a bid to help it detect and take down scamming accounts and coordinated fraud schemes.

    Meta said that the tech has already been tested with multiple lenders in the U.K. In one example, Meta says it was able to take down 20,000 accounts from scammers engaged in a concert ticket scam network targeting people in the U.K. and U.S., thanks to data shared by British lenders NatWest and Metro Bank.
    NatWest and Metro Bank are the only banks in the U.K. that are currently part of the fraud information-sharing pact, but more are set to join later on, according to Meta.
    “This work has already seen us take action against thousands of accounts run by scammers, indicating the importance of banks and platforms working together to tackle this societal issue,” Nathaniel Gleicher, global head of counter-fraud at Meta, said in a statement Wednesday.
    “We will only beat these criminals if we work together and share relevant information related to scams. Financial institutions can share unique information with us which we can in turn use to train our systems to take action against more scams globally,” Gleicher added.
    Meta has long faced calls from banks in the U.K. to do more to stop scammers from running rampant on its platforms, which include Facebook, Instagram, and WhatsApp.

    In 2022, British digital bank Starling, which is backed by Goldman Sachs, began boycotting Meta and pulled advertising from its platforms over concerns that the company was failing to tackle fraudulent financial advertising.
    Meta’s apps have been frequently abused by scammers attempting to swindle users out of their money through a variety of fraudulent schemes.
    One of the most common forms of scams users encounter on the company’s platforms is authorized push payment fraud, through which criminals attempt to convince people to send them money by impersonating individuals or businesses that are selling a service.
    Meta already has policies in place banning promotion of financial fraud, such as loan scams and schemes promising high rates of returns. The firm also prohibits ads that promise unrealistic results or guarantee a financial return. More

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    Nike withdraws guidance, postpones investor day as it gears up for CEO change

    Nike withdrew is full-year guidance and said it was postponing its investor day, which had been scheduled for November.
    Nike beat earnings expectations by 18 cents, but it fell short on revenue as it works to fix its product assortment and rework its approach to innovation.
    The sneaker giant is gearing up for a new CEO to take the helm.

    An employee carries shoe boxes at the Footlocker retail store in the Barton Creek Square Mall on August 28, 2024 in Austin, Texas. 
    Brandon Bell | Getty Images

    Nike on Tuesday said it was withdrawing its full-year guidance and postponing its investor day as it gears up for a new CEO to take the helm.
    Last month, the company announced that CEO John Donahoe would be stepping down in October and replaced with longtime company veteran Elliott Hill, effective Oct. 14. Given the impending CEO change, the company has decided to withdraw its full-year guidance and intends to provide quarterly guidance for the balance of the year, executives said.

    “This provides Elliot with the flexibility to reconnect with our employees and teams, evaluate the current strategies and business trends and develop our plans to best position the business for fiscal ’26 and beyond,” finance chief Matthew Friend said on an earnings call with analysts.
    When reporting fiscal fourth-quarter results in June, Nike cut its guidance for fiscal 2025 and said it was expecting sales to be down mid-single digits after it previously expected them to grow. Friend said since the fiscal year started, the company’s “revenue expectations have moderated… given traffic trends on Nike Digital, retail sales trends across the marketplace and final order books for spring.”
    “We continue to see indications of slight second-half improvement in revenue trends versus our first half,” said Friend. “As we plan to introduce and scale newness and innovation across the marketplace, we now expect gross margins to decline versus the prior year.”
    Nike said it expects revenue in its current quarter to be down between 8% and 10% and gross margin to be down about 1.5 percentage points. That’s worse than the 6.9% drop in revenue that LSEG analysts had expected.
    It’s also postponing its investor day, originally scheduled for November. It’s unclear when the meeting will be rescheduled. 

    Shares fell about 5% in extended trading after the updates and after Nike delivered mixed results for its fiscal first quarter.
    Here’s how the world’s largest sneaker retailer performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

    Earnings per share: 70 cents vs 52 cents
    Revenue: $11.59 billion vs $11.65 billion

    The company’s reported net income for the three-month period that ended August 31 was $1.05 billion, or 70 cents per share, compared with $1.45 billion, or 94 cents per share, a year earlier.
    Nike beat earnings expectations by 18 cents, but it fell short on revenue as it works to fix its product assortment and rework its approach to innovation.
    Sales dropped to $11.59 billion, down about 10% from $12.94 billion a year earlier.
    Nike’s gross margin grew by 1.2 percentage points in the quarter to 45.4%, higher than the 44.4% that StreetAccount analysts had expected. Still, profits fell by nearly 28% during the quarter.

    Innovation

    Over the last year, Nike has been accused of falling behind on innovation and ceding share to competitors as it focused on selling directly to consumers through its own websites and stores rather than through wholesalers such as Foot Locker and DSW. 
    At first, the strategy was a boon to Nike’s profits and sales during the Covid pandemic, but as it scaled, it got more complex and consumers started returning to stores and other in-person activities.
    During the quarter, Nike Direct sales were down 13% to $4.7 billion, while Nike digital sales were down 15%.
    Critics say Nike’s focus on direct selling also led it to take its eye off innovation.
    Under Donahoe’s leadership, the company grew annual sales by more than 31%, but it got there by churning out legacy franchises such as Air Force 1s, Dunks and Air Jordan 1s — not the groundbreaking styles that turned the company into a global powerhouse. 
    Sales for those legacy franchises are no longer boosting sales in the same way they had previously, and as a result, the company has worked to cut off supply to drive up demand and recapture their cool factor.
    During the first quarter, sales for those franchises declined more than the overall business. Online sales for Air Force 1s, Dunks and Air Jordan 1s combined were down nearly 50%. Jordan brand alone was down double-digits during the quarter, and the company expects it to be down at the same rate for fiscal 2025.
    The company also expects overall online sales to be down double-digits in fiscal 2025.

    Wholesale

    Last year, Donahoe started to acknowledge Nike needed to mend its relationships with wholesalers, but the company’s board decided that Hill, who spent 32 years with Nike before retiring in 2020, would be the right person to lead its next chapter. 
    Hill is known to be well-regarded among Nike’s retail partners, when he takes over later this month, he’ll have work to do to rebuild those relationships.
    Wholesalers have previously spoken out about Nike’s product lineup and how the same old recycled franchises weren’t doing enough to drive sales. They’ve also been working to keep their own inventories in line and have been careful about ordering too much product.
    Nike’s fiscal first-quarter wholesale revenue was down 8% to $6.4 billion.
    “The multi-brand environment is very competitive today, and it will take time to expand market share. This was reflected in our spring ’25 order books, which came in roughly flat versus the prior year,” Friend said on the earnings call, adding orders were a “little lighter” than expected.
    Compounding the issue is the overall sneaker market, which has been relatively stagnant in the U.S., and a slowdown in consumer spending on discretionary goods such as new clothes and shoes.

    Footwear sales in the U.S. are projected to grow by just 2% in 2024 compared with 2023 after barely budging between 2022 and 2023, according to Euromonitor. Athletic footwear is expected to grow by about 5.6%, the firm said. 
    During the most recent quarter, Nike footwear sales in North America were down 14%, and apparel sales fell 10%.
    Converse, which Nike acquired in 2003, is also weighing down the company’s overall performance. Sales fell 15% to $501 million during the quarter but performed better than the $493 million that analysts had expected, according to StreetAccount.

    China

    Nike’s performance has also been weighed down by the uneven economy in China, Nike’s third-largest market by revenue. Nike’s performance in China is often an indicator of the region’s financial health, and in late June, it warned of a “softer outlook” in the region.
    During its fiscal first quarter, Nike posted $1.67 billion in revenue in the region, slightly above the $1.62 billion that analysts had expected, according to StreetAccount. Still, traffic was “soft” in the region and Friend said that Nike is “not immune” to China’s challenging consumer environment.
    China’s central bank recently unveiled its largest stimulus measures since the Covid pandemic, which is expected to give the region’s economy a much-needed boost. 
    Nike’s fiscal first quarter concluded prior to those stimulus measures, but executives may share color on how sales are performing during the current period. 
    Shares of Nike closed at $89.13 on Tuesday, down about 18% so far in 2024, significantly underperforming the S&P 500’s gains of about 20%. More

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    500 Starbucks locations have voted to unionize as labor talks continue

    Baristas at a Starbucks in Bellingham, Washington, successfully voted to unionize on Monday, marking the 500th store to join Starbucks Workers United.
    The union now represents more than 11,000 baristas across the country.
    Starbucks and Workers United are negotiating a framework for collective bargaining agreements for unionized cafes.

    Demonstrators protest outside a closed Starbucks Corp. location at 505 Union Station in Seattle, Washington, US, on Saturday, July 16, 2022. 
    David Ryder | Bloomberg | Getty Images

    Baristas at a Starbucks in Bellingham, Washington, became the 500th store to join the Starbucks Workers United union on Monday.
    Since the first location voted to unionize in 2021, more than 11,000 baristas have joined the union, according to a Tuesday press release.

    “This milestone is a testament to workers building power from the ground up,” said Lynne Fox, president of Workers United. “Starbucks partners have boldly demanded a voice on the job and with it, strong contracts that ensure respect, living wages, racial and gender equity, fair scheduling and more.”
    The union and Starbucks announced together in February that negotiations would be taking place through a collaborative process to work toward a foundational framework. They have been meeting at the bargaining table monthly since April, and 100 new locations have successfully unionized in the past six months, the union said.
    CEO Brian Niccol, who assumed the coffee chain’s top spot in September, said last week that the company is committed to bargaining in good faith with the union as the two sides work to craft a labor deal. The framework they are negotiating would be the basis for collective bargaining agreements between individual stores and the company.
    Both the union and Starbucks noted that negotiations have been productive and have advanced measures.
    Baristas from the Bellingham location sent a letter to Niccol outlining their reasons for organizing.

    “Starbucks’ ultimate success in rebuilding hinges on whether we as baristas have the support we need to do our jobs well so that, in turn, we can ensure customers enjoy their Starbucks experience and keep coming back,” they wrote.
    In a statement, a Starbucks spokesperson said “we respect our partners rights to have a choice on the topic of unions,” and added that “we are proud of the progress we have made on bargaining and are committed to continuing to work together to achieve our shared goals.” More

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    With Hurricane Helene disrupting travel, here’s what fliers need to know

    Hurricane Helene brought high winds and mass flooding to parts of the Southeast U.S., including Florida, Georgia, North Carolina, South Carolina, Virginia and Tennessee.
    Airlines don’t generally owe a financial duty to customers because of weather related events, experts said.
    Some carriers are offering concessions in certain areas like Asheville, North Carolina, and Valdosta, Georgia.

    Men inspect the damage from flooding in the aftermath of Hurricane Helene on Sept. 28, 2024 in Asheville, North Carolina.
    Sean Rayford | Getty Images News | Getty Images

    As the Southeast U.S. recovers in the aftermath of Hurricane Helene’s destruction, consumers looking to change their air travel plans to or from affected areas without taking a financial hit may be out of luck, experts said.
    “The big-picture issue that happens in U.S. air travel: When there is a significant disruption, air passengers have very, very limited rights” when it comes to compensation, said Eric Napoli, chief legal officer at AirHelp, an online service that assists airline passengers.

    ‘Catastrophic damage’

    The North Carolina Department of Transportation urged people to avoid unnecessary travel in the western part of the state due to hundreds of road closures from downed trees, landslides and “catastrophic damage.”

    What airlines owe passengers

    Amid that destruction, travelers hoping to change flights for free or cancel their plans for a refund may find airlines unwilling to grant that financially flexibility.
    Airlines do generally owe “prompt” refunds to passengers if they cancel or make a “significant change” to a flight, regardless of the reason, according to the U.S. Department of Transportation. That’s true even for consumers with non-refundable tickets.

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    However, weather-related events like Hurricane Helene are generally considered to be outside an airline’s control, meaning passengers have relatively few rights to compensation, experts said.
    The airline’s duty in such cases generally depends on a passenger’s specific fare, such as economy or business class, Napoli said.
    “There’s nothing [airlines] will do for you” if your conference was canceled and you don’t have a ticket that grants free cancellation or comes without fees for changes, he said.

    Airlines make concessions in some cases

    Damage to a store in Valdosta, Georgia, from Hurricane Helene.
    Michael M. Santiago | Getty Images News | Getty Images

    Some airlines are making concessions tied to Hurricane Helene, though they vary by carrier and geography.
    “All the rules are different,” said Sally French, a travel expert at NerdWallet.
    Many major U.S. carriers have dedicated webpages for travel alerts outlining their policies around specific events, she said.
    For example, American Airlines, Delta Airlines and United Airlines have alerts about flooding in the Southeast. Many focus on areas around Asheville, North Carolina, and some parts of Georgia like the city of Valdosta.
    United is waiving change fees and fare differences for passengers whose flight was affected by flooding and who choose to reschedule their flight, for example.
    United’s policy comes with parameters: Passengers must have purchased their ticket before Sept. 26, for travel between Sept. 30 and Oct. 31, 2024; the new flight must be a United flight leaving by the end of 2024 and between the same cities as originally booked. Those who cancel can get a full refund.

    American Airlines is also giving leeway to passengers scheduled to travel through Augusta, Georgia, between Sept. 29 and Oct. 4. They must book changes by Oct. 4.
    Delta passengers scheduled to fly through Asheville or Valdosta must travel on rebooked flights by Oct. 18 to avoid paying a fare difference. Change fees would still be waived past that date, however.

    Read the specifics of insurance policies

    Travel insurance isn’t always a fail-safe in the event consumers can’t get reimbursed from the travel provider for a flight, hotel or other travel expenses, experts said.
    If you didn’t purchase a cancel-for-any-reason policy, your trip problems typically have to fall under specific, covered reasons. Plus, policies bought after Helene became a named storm generally won’t cover claims related to it.
    “Make sure you read the fine print and what the insurance is actually covering,” Napoli said.
    Consumers who purchased their trip with a credit card may get certain travel reimbursement benefits from their card issuer, sometimes even in the case of severe weather, French said. Credit-card companies generally require a “quick turnaround” on a claim, often within 21 days, she said. More

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    PepsiCo to buy tortilla chip maker Siete Foods for $1.2 billion

    PepsiCo is buying Mexican American food company Siete Foods for $1.2 billion.
    Siete’s tortilla chips and other products are designed to meet dietary restrictions.
    Packaged food companies are turning to deal-making to drive sales growth.

    Siete Foods Tortilla Chips
    Courtesy: Siete Foods

    PepsiCo said Tuesday that it’s buying Mexican American food company Siete Foods for $1.2 billion, marking the company’s first food acquisition in roughly five years.
    Like many food companies, Pepsi has been trying to shift its portfolio to include healthier options in recent years, usually through acquisitions. Recent additions include Bare Snacks, Health Warrior and PopCorners.

    Soon that will also include Siete. Founder Veronica Garza started the company in 2014, when she began selling grain-free tortillas. Since then, its portfolio has grown to include tortilla chips, taco shells, salsas and seasonings, often designed to accommodate different dietary restrictions. Retailers like Target, Kroger, Whole Foods and CVS carry the company’s products.
    “We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete,” Pepsi CEO Ramon Laguarta said in a statement.
    The deal is expected to close in the first half of 2025, assuming it receives regulatory approval.
    Deal-making has picked up this year for packaged food companies, who are turning to acquisitions to drive sales growth as shoppers buy less of their products. In August, M&M’s owner Mars announced it would purchase Pringles parent Kellanova in a deal valued at nearly $36 billion. This March, Campbell Soup completed its $2.7 billion acquisition of Rao’s pasta sauce maker Sovos Brand.

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    The house-price supercycle is just getting going

    After THE financial crisis of 2007-09, global house prices fell by 6% in real terms. But, before long, they picked up again, and sailed past their pre-crisis peak. When covid-19 struck, economists reckoned a property crash was on the way. In fact there was a boom, with mask-wearing house-hunters fighting over desirable nests. And then from 2021 onwards, as central banks raised interest rates to defeat inflation, fears mounted of a house-price horror show. In fact, real prices fell by just 5.6%—and now they are rising fast again. Housing seems to have a remarkable ability to keep appreciating, whatever the weather. It will probably defy gravity even more insolently in the coming years. More

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    Harris wants to stand out as the pro-cannabis candidate. The industry isn’t convinced yet

    Vice President Harris reaffirmed her support for legalizing cannabis on Monday.
    This was the first time she spoke on the issue publicly since she became the Democratic nominee.
    But industry insiders said they’re hoping for more details and concrete changes on cannabis policy.

    US Vice President Kamala Harris speaks during a roundtable conversation about marijuana reform and criminal justice reform, in the Roosevelt Room of the White House on March 15, 2024 in Washington, DC. 
    Kent Nishimura | Afp | Getty Images

    Vice President Kamala Harris further positioned herself as a pro-cannabis candidate on Monday in an interview with sports and culture podcast “All the Smoke” — but industry leaders aren’t convinced her administration would lead to the reform she has promised.
    “I just think we have come to a point where we have to understand that we need to legalize it and stop criminalizing this behavior,” Harris said during the interview. 

    This was the first time she has spoken on the issue publicly since she became the Democratic presidential nominee.
    “I am encouraged by Vice President Harris’s support for cannabis legalization; however, we need real action, not just rhetoric,” said Jason Wild, executive chairman of Toronto Stock Exchange-listed cannabis company TerrAscend, which has operations in the United States. “I hope this time around, these campaign promises aren’t just soundbites but will lead to tangible change.”
    Four years earlier, as a senator and candidate for president in 2020, Harris advocated for and introduced legislation to decriminalize and tax cannabis at the federal level. Biden also tapped her as vice president to lead discussions on criminal justice and cannabis reform as his administration worked to reschedule cannabis.
    But the process has moved slowly, said Brady Cobb, founder of Florida-based Sunburn Cannabis.
    “I would question the statement that Harris has been the more pro-cannabis candidate,” Cobb said. “While rescheduling has advanced, and if adopted it would mark the largest incremental step forward in federal cannabis reform to date, the fact remains that it is not completed.”

    The Biden administration said this spring that it would move to ease restrictions by reclassifying cannabis from the strictest Schedule I to the less stringent Schedule III, which would open the door for studies and research, as well as larger sales and distribution of medical supply in states where it is legal.
    In July, the public comment period on cannabis reclassification ended with a significant 43,000 comments submitted for review. In August, the Drug Enforcement Administration further delayed reclassification further by scheduling a hearing on the proposed rule change for Dec. 2, after the election.
    Cannabis investors are eager for more details on future proposals.
    “We would welcome to hear more from the Harris campaign on how they envision reform on this issue, as several paths need to be improved, including banking and capital markets reform,” said Emily Paxhia, Poseidon Investment Management co-founder.
    The cannabis industry is also skeptical about former President Donald Trump’s support for legalization.
    “Trump did not move the ball on cannabis either during his time as president, so they [Trump and Harris] are very much equal on this issue from my vantage point,” Cobb said.
    In late August, Trump departed from his usual stance that cannabis legalization should be left up to each individual state. He said that, if elected, his administration “will continue to focus on research to unlock the medical uses of marijuana to a Schedule 3 drug, and work with Congress to pass common sense laws, including safe banking for state authorized companies, and supporting states rights to pass marijuana laws.”
    He also said he plans to vote yes on a ballot measure in Florida to legalize the use of recreational cannabis.
    The AdvisorShares Pure US Cannabis ETF, which tracks U.S. companies with cannabis exposure, has risen 12% since Trump made those comments a month ago, as investors see bipartisan support for legalization as a significant tailwind.
    “The fact that both Republican and Democratic Presidential candidates now support federal cannabis reform increases the probability that federal cannabis legalization is simply a matter of time,” said Bernstein analyst Nadine Sarwat, in a recent note.
    However, while candidate support has boosted the market, Bernstein also noted that growth has been stagnant in the category as it faces macro headwinds.
    “Despite all the headlines regarding potential federal reform, state-level sales performance is sobering,” Sarwat said. More

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    Facebook parent Meta rehired worker after he stalked a coworker for over a year, lawsuit says

    A Meta employee has filed a lawsuit against the company alleging retaliation and negligence after the tech giant rehired a former staffer who had been accused of stalking and harassment.
    The lawsuit comes after Facebook parent Meta gutted its talent and recruitment department amid larger efforts to restructure its business.
    “I trusted that my employer would be able to keep me safe,” the employee told CNBC. “This isn’t just a hazard for me, this is a dangerous individual that was let back into the workplace.” 

    A logo of US company’s Meta is displayed during the Vivatech technology startups and innovation fair, at the Porte de Versailles exhibition center in Paris, on May 22, 2024.
    Julien De Rosa | Afp | Getty Images

    A former Meta staffer who was placed on a “Do Not Hire” list after he stalked and harassed one of the company’s employees found himself rehired by the tech giant after it gutted its talent and recruitment department, a lawsuit filed Tuesday says. 
    The suit, filed in New York Supreme Court on behalf of Meta employee James Napoli, accuses the company of violating New York City’s human rights law and negligence for hiring the person back. It also accuses the company of retaliation after it allegedly sidelined Napoli and took him off big projects when he raised concerns that the person had been rehired.

    “I had spoken to my employer about this … on numerous occasions and I was told that he would not be able to enter our offices, that he would not be hired again, and then like, all of a sudden, this guy is reaching out to me [on Meta’s internal messaging system],” Napoli, a marketing leader who works out of Meta’s New York City office, told CNBC in an interview. “I trusted that my employer would be able to keep me safe, right? Because stalkers and harassers are also workplace hazards… And this isn’t just a hazard for me, this is a dangerous individual that was let back into the workplace.” 
    The lawsuit comes after CEO Mark Zuckerberg announced in March 2023 that Meta would be reducing the size of its recruiting team as part of a larger strategy to cut 21,000 jobs, remove layers of middle management and operate more efficiently.
    Meta owns Facebook, Instagram, Messenger and WhatsApp.
    Although Wall Street has responded favorably to Meta’s cost-cutting plans, layoffs in the company’s customer service and trust and safety teams have made it harder for the social networking giant to respond to concerns from small businesses and influencers, as well as state and local election officials who use Facebook and Instagram, CNBC has previously reported.
    In the aftermath of Meta’s cost-cutting efforts and ensuing layoffs, attorneys for Napoli say in the lawsuit that the company is relying “more heavily on hiring employees through outside contractors” and employs “far fewer recruiters to screen applicants,” which has negatively impacted their ability to properly catch red flags.

    “Meta’s employment practices are apparently so chaotic, reckless, and ineffectual that the company fails to keep track of the most fundamental data point in its workplace – the dangerous people who pose a severe risk to Meta’s own employees,” the lawsuit, filed by attorneys Carrie Goldberg and Peter Romer-Friedman, states. “Yet Meta tells the public and public officials that the company has the ability to safeguard the personal data of billions of children and adults on their platforms.”
    Meta has previously dealt with similar allegations that it’s employed workers who have engaged in stalking and related activity. For example, in 2018, the company said it fired a security engineer who allegedly used internal data to stalk women online.
    Meta didn’t immediately respond to request for comment on the lawsuit filed Tuesday.

    ‘Do Not Hire’ list

    The person accused of stalking Napoli, identified only by the initials “G.F.” in the complaint, was a member of Meta’s marketing team before he was laid off in November 2022 when the company cut 13% of its staff as part of a larger restructuring. 
    Before the layoffs, G.F. and Napoli occasionally saw each other in meetings but were no more than “work acquaintances,” Napoli said. After G.F. lost his job, he reached out to Napoli for support and asked him to get a coffee. During that meeting, the accused stalker started making “disturbing” comments, the filing states. 
    “[He] told me that he hears voices, God talks to him, and God had been talking to him about me since April of that year, and he sent me a list of documents that were his like journal entries over the months,” Napoli recalled.
    Napoli “immediately” reported the incident to his manager and to HR, and says at first he was concerned for G.F.’s well-being. But over the next year, Napoli says, the situation escalated. 
    G.F. began sending Napoli up to 30 messages a day, contacting his family members and referencing Napoli’s partner, friends and even his dog, Luigi, in messages. 
    “I am being mind tortured with an A.I tech which I don’t know where it’s coming from and I am feeling like my love for you is being used for experiences I didn’t agree for, while I am being told by spirits that you and I are the two messengers,” G.F. wrote in one message to Napoli, according to the complaint. 
    G.F. found out where Napoli lived and “personally delivered a large ream of disturbing writings and drawings” to the apartment, forcing Napoli and his partner to move, the lawsuit says. 
    “It really felt like I was drowning for a long time because there was just nothing that I could do to escape. … It was really terrifying,” said Napoli. “I was worried about going out, I was worried about my dog, I was worried about my partner, because they were all mentioned by this person.” 
    Napoli reported G.F. to the police and considered getting a restraining order, but under New York state law orders of protection are only available to people who have an intimate or familial relationship to their stalker, the lawsuit states. 
    In September 2023, Napoli informed Meta that the stalking had increased “in both frequency and severity,” and the HR department assured him that G.F. was on the company’s “Do Not Hire” list and its “No Entry” list, which identifies people who shouldn’t be permitted into company buildings.
    But just four months later, the company hired G.F. back to a contractor position after he apparently slipped through the cracks in the hiring process, the lawsuit says. Napoli learned his accused stalker was back at Meta when G.F.’s name popped up on Workplace, the company’s internal messaging system. Napoli says he received a message from G.F. stating that he’d been rehired and would be seeing him at meetings and events. 
    “To have all of that come back after I was guaranteed that I would be kept safe, it was really harrowing,” said Napoli. “I immediately went to [HR]… they let me know that they were equally stunned. They didn’t have an answer as to how it happened, and they let me know that they would investigate.” 

    Terminated again

    For the next month, Napoli says he “lived in terror of interacting with G.F. at work” until Meta notified him that G.F. had been terminated. However, after G.F. lost his job a second time, his “stalking and harassment of Mr. Napoli significantly amplified and became more creative, sexually violent, and obsessive,” the lawsuit states.
    As Napoli grappled with the continued stalking, he also faced what the lawsuit says was retaliation at Meta for complaining to his managers and to HR about the decision to rehire G.F.
    Napoli had been tapped to lead an artificial intelligence marketing push at Meta, but says that in response to his complaints, those projects were taken away and he found himself sidelined with reduced responsibilities. 
    In his complaint, Napoli is asking for damages but didn’t specify an amount. He also asked the court to enter judgements that would prohibit G.F. from being rehired at Meta and prohibit the company from “engaging in any further discriminatory or retaliatory acts” against Napoli. 
    “I want to be able to do my job, and I want to be able to do my job without feeling like the shoe is going to drop,” said Napoli. “I am very passionate about my work, and I take a lot of pride in my work, and that is really all I want to be able to do.” 
    Napoli said he decided to tell his story because he wants Meta to make reforms that would prevent something like this from happening again. 
    “It doesn’t seem to me as though there are the right processes in place to stop this from happening to … me or to someone else,” said Napoli. “Everybody deserves a safe workplace.” 

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