Costco Defends DEI Initiatives Amid Conservative Backlash

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Costco has taken a firm stance in support of its diversity, equity, and inclusion (DEI) efforts, pushing back against activist shareholders advocating for the dismantling of these policies. While companies like Walmart, John Deere, and Tractor Supply have shifted or scaled back their DEI initiatives, Costco remains committed, emphasizing the value DEI brings to its unique shopping experience.

The warehouse retailer’s board of directors unanimously recommended that shareholders reject a proposal from the National Center for Public Policy Research (NCPPR), a conservative think tank. The proposal called for Costco to issue a report on the financial risks of its DEI policies, alleging potential “illegal discrimination” against employees who are white, Asian, male, or straight.

Costco defended its DEI practices, stating they play a vital role in attracting and retaining diverse talent, enhancing merchandise originality, and fostering a shopping environment that reflects its members’ diversity. “A diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” the company explained in a proxy statement.

The retailer also highlighted its support for minority-focused organizations like the Thurgood Marshall College Fund and its supplier program, which collaborates with small and diverse businesses. Costco argued that NCPPR’s proposal disguised an anti-diversity agenda under the pretense of mitigating risk, stating, “The proponent’s broader agenda is not reducing risk for the company but abolition of diversity initiatives.”

Costco’s defense comes as DEI policies face mounting criticism from conservative groups, legal challenges, and political shifts. Some companies have adjusted their language—substituting terms like “DEI” with “inclusion” or “belonging”—to deflect pressure, while others have downplayed their DEI efforts compared to the heightened focus in 2020 and 2021.

Despite this environment, Costco has positioned itself as a progressive employer, known for paying some of the highest wages in retail. The company’s commitment to DEI, it says, reflects its belief in fair and legal practices that benefit its employees, customers, and shareholders alike.

 

Netflix Sets Streaming Record with Christmas Day NFL Games

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Netflix made history on Christmas Day, setting a new record for the most-streamed NFL games in U.S. history, according to Nielsen. Nearly 65 million viewers tuned in to watch two highly anticipated matchups streamed exclusively on the platform.

The Baltimore Ravens’ win over the Houston Texans drew an average of 24.3 million viewers, while the Kansas City Chiefs’ victory against the Pittsburgh Steelers attracted 24.1 million viewers. The Ravens-Texans game peaked during Beyoncé’s halftime performance, which brought in over 27 million viewers.

“Bringing our members this record-breaking day of two NFL games was the best Christmas gift we could have delivered,” said Bela Bajaria, Netflix’s Chief Content Officer. She credited the partnership with the NFL, the “wonderful on-air talent,” and the iconic performances by Beyoncé and Mariah Carey for the milestone.

These games marked the beginning of a three-year partnership between Netflix and the NFL to exclusively stream Christmas Day matchups.

The NFL wasn’t the only sports league celebrating on Christmas. The NBA also achieved notable viewership records. Its five-game Christmas Day lineup averaged 5.25 million viewers per game, the highest in five years, according to Nielsen.

The Los Angeles Lakers’ victory over the Golden State Warriors drew 7.76 million viewers, peaking at 8.32 million, making it the most-watched NBA regular-season game in five years. The New York Knicks’ win against the San Antonio Spurs, which opened the day, averaged 4.91 million viewers, marking the most-watched Christmas Day opener in 13 years.

Overall, NBA viewership on Christmas was up 84% compared to 2023, with games broadcast across Disney’s platforms, including ABC, ESPN, ESPN2, Disney+, and ESPN+.

 

Novartis Must Face Whistleblower Claims of Paying Kickbacks for MS Drug Promotion

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A U.S. appeals court on Friday revived a whistleblower lawsuit against Swiss pharmaceutical company Novartis, accusing the company of paying illegal kickbacks to doctors to promote its multiple sclerosis drug, Gilenya. The 2nd U.S. Circuit Court of Appeals in Manhattan ruled 3-0 that Steven Camburn, a former Novartis sales representative, can proceed with his claims that Novartis violated the federal False Claims Act through fraudulent “sham” speaker events designed to increase Gilenya sales.

Camburn alleges that Novartis paid doctors substantial sums of money and treated them to dinners at upscale restaurants to speak at events that were presented as educational but were actually social gatherings. These events allegedly led to fraudulent claims being submitted to government health insurance programs, including Medicare, Medicaid, and TRICARE, for Gilenya prescriptions influenced by kickbacks.

Circuit Judge Myrna Perez stated that Camburn’s allegations—including the holding of speaker events with minimal attendance, excessive payments for canceled events, and selecting doctors who would promote prescriptions—created a “strong inference” of Novartis’ intent to induce fraud. The court aligned with other federal appeals courts, agreeing that when compensation has the purpose of inducing the purchase of federally reimbursable healthcare products, it violates the federal Anti-Kickback Statute.

The decision reversed a September 2022 dismissal by U.S. District Judge Kimba Wood and sent the case back to her court for further proceedings. Camburn’s lawyer, James Miller, expressed confidence in addressing the core allegations in court.

Camburn filed the lawsuit in May 2013, shortly after Gilenya was approved for federal use. The drug’s sales have since declined due to competition from generics, dropping from $3.22 billion in 2019 to $925 million in 2023, with only $443 million in sales in the first nine months of 2024.

In 2020, Novartis agreed to pay over $729 million to settle U.S. government charges for similar kickback violations. The case is identified as US ex rel Camburn v. Novartis Pharmaceuticals Corp, 2nd U.S. Circuit Court of Appeals, No. 22-2708.