🛡️ Dollar General's $12M safety lesson

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TOP STORY
🛡️ Dollar General's $12M safety lesson

Dollar General, the discount giant, will be improving its safety protocols in stores and paying $12 million in penalties in a settlement with the Department of Labor over unsafe working conditions.

• The settlement will require Dollar General to correct safety violations like blocked exits and access to fire extinguishers by the end of the week or face fines of up to $500,000 per violation.

• Dollar General will also have to hire new safety managers, provide safety training to workers, and develop a safety committee.

Damn, DG, y’all better get on this quick.

And it’s not just safety that’s a concern; it’s also low wages. Stores like Dollar General and Dollar Tree use a very low-cost business model, often with just one or two minimum-wage workers per store, which can lead to maintenance and safety issues.

That’s why, last year, the Labor Department made a deal with Dollar Tree to improve worker safety in its stores, aiming to make all low-cost retailers safer for employees.

Hopefully, this wake-up call will help Dollar General actually clean up its act, literally.

ARTIFICIAL INTELIGENCE
🤑 AI dominated VC funding this past quarter

Of the $79 billion invested in startups this past quarter, AI-related startups accounted for $24 billion, or 30% of the total funding.

Here’s how that compares to other top industries:

• Healthcare and Biotech: $17B (22% of total funding)

• Hardware Companies: $11B (14% of total funding) — Primarily tied to AI infrastructure and semiconductors.

• Financial Services Companies: $10B (13% of total funding)

And AI’s dominance in the startup world didn’t stop there.

5 out of the 6 billion-dollar funding rounds this quarter involved AI startups:

• xAI, Elon Musk’s AI startup, raised $6B.

• CoreWeave, an AI infrastructure provider, raised $1.1B.

• Wayve, an Automotive driving company, raised $1B.

• Scale AI, a Data preparation company, raised $1B.

• Xaira Therapeutics, an AI biotech company, raised $1B.

New AI companies are hotter than fish grease, and even more impressive is that all the companies I mentioned above, except Wayve, are U.S.-based companies. USA! USA! USA!

LAWSUIT
📈 Reality TV stars face investment scheme charges

A group of reality TV stars turned social media influencers have pleaded not guilty to charges related to online investment schemes.

The stars, including Love Island’s Biggs Chris, Jamie Clayton, The Only Way is Essex’s Lauren Goodger, and Geordie Shore’s Scott Timlin, are charged with promoting an unauthorized investment scheme on Instagram.

Here’s the full list:

• Scott Timlin

• Lauren Goodger

• Biggs Chris

• Jamie Clayton

• Rebecca Gormley

• Eva Zapico

• Yazmin Oukhellou

What kind of schemes are we talking about? The Financial Conduct Authority (FCA) alleges that these influencers promoted high-risk trading schemes between 2018 and 2021, which involved betting on foreign currency prices. 

These trades led to significant losses for many investors because, well, let’s just say these celebs aren’t exactly following Warren Buffett’s investing strategy.

• The influencers allegedly paid to promote the scheme have been charged with unauthorized communications of financial promotions.

• Eight of the nine defendants pleaded not guilty, but Ms. Zapico, who missed the hearing, has a further plea set for September.

The FCA stated that 80% of customers who bought into the scheme lost money, with promotions made through accounts like @holly_fxtrends.

What next? The influencers' final verdict will be decided at a trial set for 2027 at Southwark Crown Court. If convicted, they could face up to two years in prison.

Listen up, people; this is why we don’t take investment advice from influencers on the internet.

Wow, never thought I'd have to spell that one out, but here we are.