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Qualcomm Sued Over Political Campaigning Expenditures
Published on:
Qualcomm is facing a lawsuit in the USA as an investor seeks to force it to disclose how much it spends on political campaigning.
The lawsuit has been filed by the New York State Common Retirement Fund in a Delaware court seeking the right to inspect the company's books and records to determine how shareholder funds are being spent for political purposes.
The complaint comes after Qualcomm refused the Fund's request to inspect the company's books relating to the use of corporate resources for political activities.
"As a shareholder in public corporations, the Fund has a right to be properly informed about the use of corporate funds to influence the political process," DiNapoli said. "Without disclosure, there is no way to know whether corporate funds are being used in ways that go against shareholder interests."
Since the Citizens United v. Federal Elections Commission Supreme Court decision in 2010, the amount of corporate political spending has increased dramatically but the level of disclosure of such spending has not. The Retirement Fund says that it has engaged in a comprehensive corporate governance initiative to urge companies in which it invests to disclose their political spending.
"Corporate spending for political purposes should be focused solely on creating shareholder value and should be done in a completely transparent manner. Qualcomm's lack of disclosure of political spending prevents the Fund from determining if shareholder value is being furthered," DiNapoli said.
Qualcomm spent around US$4.5 million on lobbying efforts in 2012.
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