The daily business briefing: May 18, 2023

1. Deutsche Bank agrees to pay Epstein victims $75 million

Deutsche Bank has agreed to pay $75 million to settle a proposed class-action lawsuit by women who said they were sexually abused by financier Jeffrey Epstein, who died in jail awaiting a sex-trafficking trial. The lawsuit, filed in November 2022, accused the German bank of continuing to do business with Epstein despite being aware of the abuse, and facilitating Epstein's sex-trafficking ring. The Wall Street Journal said the lender didn't admit wrongdoing under the settlement. David Boies, one of the victims' lawyers, said in a statement the abuse "could not have happened without the collaboration and support of many powerful individuals and institutions." Deutsche Bank didn't comment, referring to a 2020 statement admitting it was a mistake to take on Epstein as a client.

The Wall Street Journal DW

2. Montana governor signs TikTok ban into law

Montana Gov. Greg Gianforte (R) on Wednesday signed a new law outlawing the Chinese-owned short-video sharing app TikTok statewide starting in 2024, making Montana the first state to impose a total TikTok ban. The federal government has warned that China could access TikTok data, posing a potential national security risk. A growing number of Republican-dominated state governments have banned TikTok on government-issued devices. A TikTok spokesperson told Axios in an emailed statement that Montana's new law violated First Amendment rights to free speech. "We want to reassure Montanans that they can continue using TikTok to express themselves, earn a living, and find community as we continue working to defend the rights of our users inside and outside of Montana," the spokesperson said.

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Axios

3. Biden, McCarthy say debt ceiling deal 'doable' in coming week

President Biden and House Speaker Kevin McCarthy (R-Calif.) said Wednesday that they were determined to reach a deal soon on raising the debt ceiling to prevent a catastrophic default. Biden and McCarthy on Tuesday agreed to negotiate directly on a deal to raise the $31.4 trillion debt ceiling before the government runs short of money in June. Biden and fellow Democrats insist on raising the cap with no conditions. Republicans want deep spending cuts in exchange for raising the debt limit. "We're going to come together because there's no alternative," Biden told reporters at the White House before leaving for a Group of Seven summit in Japan. McCarthy said it reaching a deal by the time Biden returns Sunday from Asia is "doable."

Reuters

4. Stock futures inch higher after rally sparked by hope for debt ceiling deal

U.S. stock futures rose slightly early Thursday after hints of progress towards a deal to raise the federal debt limit and avoid a catastrophic default. Futures tied to the Dow Jones Industrial Average were up 0.1 percent at 6:30 a.m. ET. S&P 500 and Nasdaq futures were up 0.2 percent. The main U.S. indexes surged Wednesday on rising optimism about a possible debt ceiling deal after both President Biden and House Speaker Kevin McCarthy (R-Calif.) said they wouldn't allow a default. The Dow and the S&P 500 gained 1.2 percent on Wednesday. The tech-heavy Nasdaq rose 1.3 percent. Corporate earnings continue. Target said its quarterly sales suffered as shoppers splurged less on trendy clothes, home goods, and other popular items. Walmart reports Thursday morning.

CNBC The Wall Street Journal

5. Walgreens to pay San Francisco $229.6 million in opioid settlement

Walgreens has agreed to pay San Francisco $229.6 million over 14 years to settle a lawsuit over its role in the city's opioid crisis, San Francisco City Attorney David Chiu said Wednesday. The city will use the money, most of which will come over the first eight years, for programs to address local drug addiction problems. Chiu noted that cities like San Francisco "have shouldered much of the burden of the opioid epidemic." He added that the settlement "ensures Walgreens is held accountable for the crisis they fueled and our city receives appropriate resources to combat the opioid crisis and bring relief to our communities." The payout will be the largest from a single company in an opioid-related lawsuit, according to the San Francisco Chronicle.

San Francisco Chronicle