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Whistleblower Wins 2015 Lawsuit Against Axos Financial, Formerly Bank of Internet

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Thomas De Wever/iStock Editorial via Getty Images

A whistleblower won a lawsuit against Axos Financial (NYSE:AX), formerly, known as Bank of Internet or BOFI, over allegations he made in 2015 lawsuit.

Charles Matthew Erhart was awarded $1 million in damages plus an additional $500,000 for defamation, according to a copy of the jury verdict from Wednesday.

Erhart alleged in the lawsuit that Bank of Internet failed to notify regulators of risky loans to dubious borrowers and didn’t disclose to regulators that it had received grand jury and other subpoenas, among other allegations.

Axos (AX) didn’t immediately return a Seeking Alpha email request for comment after normal business hours.

The verdict comes after Axos was was sued by another former employee in March, who alleged that the company intentionally understaffed its compliance department.

According to an NBC report about the newest lawsuit, the bank has specialized in loans to foreign nationals and has offered cash-recapture loans, which allow borrowers who paid cash for a property to immediately get money out of the investment.

One of the company’s recent loans, made in mid-February, refinanced a $100M Trump Tower mortgage due in September, NBC said, citing a New York City Finance Department document. The loan was made days after The Trump Organization’s auditor resigned, the article said.

Axos last month reported a Q3 earnings beat.

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Original Post: seekingalpha.com

Business

Lumber Futures Rise As Canada Cuts Wood Production

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CBOT lumber futures rose (LB1:COM) for the third straight session on Wednesday to $601.80 per 1,000 board feet, the highest intraday price since July 22, as supply cuts from a top Canadian producer outweigh rising interest rates that are hurting housing markets.

West Fraser Timber (WFG) announced production cuts at two British Columbia sawmills, equivalent to 2.5% of its total North American capacity, and it is cutting plywood output at another facility.

Other potentially relevant tickers include (WY), (LPX), (PCH), (RFP), (OTCPK:CFPZF), (OTCPK:IFSPF), (OTCPK:WFSTF)

ETFs: (NYSEARCA:XHB), (NASDAQ:WOOD), (CUT), (NAIL)

U.S. builders obtain more than 25% of their lumber from Canada, which is the world’s largest exporter of softwood lumber.

This year’s surge in borrowing costs caused ~60K deals for home sales in the U.S. to fall through in June.

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Original Post: seekingalpha.com

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Business

CVS Health Tried to Acquire One Medical Before Amazon Eventually Did – Bloomberg

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Original Source: seekingalpha.com

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Business

Recipe Gone Wrong: Domino’s Calls It Quits in Italy

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Mario Elias Munoz Valencia/iStock Editorial via Getty Images

Seven years after entering the Italian market, Domino’s (NYSE:DPZ) is closing up shop in the homeland of pizza. While the company had already stopped offering delivery from its website on July 29, the last of its 29 local branches just shuttered their doors. Social media is abuzz on the news, with some likening the situation to selling ice in the North Pole, or how the chain could compare their pizza to an authentic Napoletana.

History: Domino’s (DPZ) opened its first outlet in Milan in 2015, via a franchising agreement with a local business called ePizza SpA. At the time, it said it hoped to win over Italian palates with “purely Italian” ingredients like Prosciutto di Parma, Gorgonzola, Grana Padano and Mozzarella di bufala Campana. The biggest catch was a national home delivery model that could take on local artisanal shops and provide an alternative to Italy’s dining out culture.

Cracks in the plan first emerged during the pandemic, especially as delivery became essential during coronavirus lockdowns. Many of the “mom & pop” restaurants went online, allowing buyers to order quality products and gourmet items straight to their homes. As takeout and delivery models were adopted, increased competition was also seen from a rising number of online platforms like Deliveroo, Glovo or Just Eat Takeaway.com.

Go deeper: ePizza borrowed heavily for plans to open over 800 Italian stores through 2030, attempting to land a 2% stake of the national pizza market. As recently as April, it filed for protection from creditors, and while the motion was granted for an initial 90 days, there have been no further updates on the court process. According to the latest audited reports, ePizza had EUR10.6M of debt at the end of 2020, but has since been running out of cash and faltering on its debt obligations.

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Original Source: seekingalpha.com

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