– Microsoft is facing a potential class-action lawsuit from shareholders who allege the company misled investors about slowing growth in its Azure cloud business and the amount of spending required to support its AI plans.
As reported by Reuters (paywall), the lawsuit was filed in federal court in Seattle by a Michigan pension fund after Microsoft’s shares fell 10 percent on January 29, following a weaker-than-expected earnings report. The decline wiped roughly $357 bn out of the company’s market value, making it the largest one-day loss in nearly six years.
According to the complaint, Microsoft failed to adequately disclose slowing Azure growth and the need to invest billions of dollars in AI infrastructure, which shareholders claim falsely inflated the company’s stock price. The lawsuit also names CEO Satya Nadella and CFO Amy Hood as defendants.
Microsoft has rejected the allegations, saying the claims are ‘without merit’ and that it stands by the integrity of its public statements. The company plans to defend itself in court.
– Citigroup is launching a blockchain-based platform that will allow wealthy and institutional clients to trade tokenized shares of private companies. According to The Wall Street Journal (paywall), the initiative aims to expand investor access to high-profile private firms at a time when many companies are delaying public listings and remaining private for longer.
The platform uses tokenized depositary receipts, which represent ownership in private company shares on a blockchain. Citi said the structure offers a more transparent and secure alternative to traditional investment vehicles such as special-purpose entities. The system is built on infrastructure operated by Switzerland-based SIX and is initially available to non-US investors, with plans to expand access to US clients in the future.
– Investment officials from four US states have challenged recent rule changes by Nasdaq and FTSE Russell that could speed up the inclusion of newly listed companies such as SpaceX into major stock indexes. According to Reuters (paywall), the letters sent to the index providers, officials representing retirement funds in New York, New York City, Illinois and Maryland called for the changes to be paused until a detailed assessment of their impact on investors is completed and made public.
The concerns are on revisions that shorten trading history requirements, allowing large IPOs to enter key indexes much sooner than under previous rules. Critics argue the changes could expose passive investors to additional risks and volatility while benefiting large issuers seeking rapid access to index-linked capital.
The officials also questioned the transparency of the rule-making process and whether companies or their advisers influenced the changes. Nasdaq defended the revisions, saying they reflect evolving market conditions and were not designed to benefit any specific company.
– Burberry is facing potential pushback from shareholders over a proposed overhaul of its executive pay policy ahead of its AGM next month. According to Reuters, proxy advisory firm ISS has recommended investors vote against the plan, arguing that the revised framework still allows executives to receive significantly higher rewards without a meaningful reduction in guaranteed compensation.
Under the proposal, CEO Joshua Schulman could receive performance share awards worth up to 300 percent of his salary. If Burberry achieves its performance targets and its share price rises 50 percent, his total compensation package could reach £12.24 mn.
The debate comes as the British luxury brand works to revive growth by appealing to younger consumers and reducing costs following years of underperformance. While Burberry has reported signs of progress in its turnaround efforts, weaker revenues in Europe and the Middle East have raised investor concerns.
– Volkswagen is facing renewed scrutiny over its corporate governance after supervisory board member Susanne Wiegand resigned ahead of the company’s AGM.
According to The Financial Times (paywall), Wiegand, who joined the board in 2025 and was widely viewed by investors as its only independent member, decided not to seek re-election after becoming frustrated with a lack of transparency around key decisions and what she saw as limited consideration of her advice.
Her exit has raised concerns among shareholders at a time when Volkswagen is managing increased competition from Chinese manufacturers and the impact of US tariffs. Tanja Bauer of Deka Investment described the resignation as a ‘very negative signal’, arguing that the independence of the remaining supervisory board is severely limited.
– Manchester United is facing criticism over its corporate governance after investors raised concerns about the club’s lack of board independence. As reported by Bloomberg (paywall), the criticism centers on the composition of the board, where several directors are closely linked to major shareholders, including the Glazer family and minority owner Sir Jim Ratcliffe’s INEOS group, leaving limited independent oversight.
Governance advocates argue that stronger independent representation is needed to improve accountability as the club navigates a period of change. Manchester United has faced increased pressure in recent years over its ownership structure, financial performance and strategic decision-making, with fans and investors frequently questioning whether shareholder interests are balanced enough.
Natalie Bannerman
Natalie is a former telecoms and infrastructure journalist, a role she held for nearly seven years. Before this, she worked in the B2C startup space, covering lifestyle, arts and culture reporting. As senior reporter for Governance Intelligence she...
