Good morning. Have you ever felt in over your head at work? Like any day your boss will find out you Google 95% of the things you're supposed to know? Well, so has everyone—even the people you look up to the most. In order to show that nobody has it all figured out, we're launching a new podcast, Imposters, where the Brew's executive chairman, Alex Lieberman, sits down with the most respected names in business, sports, and entertainment to talk about how they overcame their personal challenges. The first two episodes dropped today, one with Twitch co-founder Justin Kan, and the other with TV personality Carson Daly. Listen here. | | | |  | Nasdaq | 13,790.92 | | | | | S&P | 4,401.67 | | | | | Dow | 34,566.17 | | |  | 10-Year | 1.988% | | | | | Bitcoin | $42,641.96 | | | | | Oil | $94.96 | | | | *Stock data as of market close, cryptocurrency data as of 7:00pm ET. Here's what these numbers mean. | - Markets: Stocks ticked lower as investors chewed their nails off over an upcoming interest rate hike from the Fed and a potential Russian invasion of Ukraine. With all the chatter of conflict in Europe, everyone's watching whether oil prices will hit $100 a barrel—they didn't budge yesterday.
- Ukraine: In another tense day of geopolitical maneuvering, the US said it was relocating its embassy from the Ukrainian capital of Kyiv to a city 340 miles west. But Russia also signaled it was open to more dialogue with Western leaders, offering a glimmer of hope that diplomacy could avert war.
| | Francis Scialabba The Texas two-step is a popular dance format enjoyed by many country-western bar patrons across the US. It's also a controversial corporate strategy that's recently found itself in the hot seat. A closely watched hearing began yesterday over Johnson & Johnson's use of the Texas two-step in order to minimize damage from the tens of thousands of claims that its talc-based products caused cancer. What is the Texas two-step? It's a Texas law that allows corporations saddled with liabilities to create a separate company that acts like a pack mule—taking on those liabilities and leaving the OG corporation with none of the baggage. Once that new company is created, it breaks off from its parent, files for bankruptcy, and settles with victims in bankruptcy court…all while avoiding jury trials that could result in hefty payouts. And what does J&J have to do with it? The health giant is staring down 38,000 claims that its talc products (including its famous baby powder) sometimes contained asbestos, which has been linked to cancer. Among other legal setbacks, J&J was ordered to pay $2.1 billion last year to women who said they developed ovarian cancer from those products. While denying that its products cause cancer, the company decided last year to utilize the Texas two-step and create a subsidiary called LTL Management that would enter bankruptcy and absorb the liabilities. - The hearing that began yesterday will decide whether LTL can remain in bankruptcy.
- Lawyers for the plaintiffs want to stop the bankruptcy process, contending that J&J is a $436 billion behemoth that is trying to "game the bankruptcy system" and cap payouts to victims.
J&J argued that its bankruptcy strategy would lead to a more even distribution of payouts than capricious jury trials, which could potentially award one victim a huge sum but another…nothing. Bottom line: The result of the J&J hearing could determine whether the Texas two-step, currently a rare maneuver, becomes a more common practice among corporations or fades away. It might already be on that path: Lawmakers in Congress have crafted legislation that would ban the practice.—NF | | Josh Edelson/Getty Images  The Western megadrought is megabad. So bad, in fact, that a new study found that over the last two decades, the Western US and northern Mexico have been experiencing their driest period since at least 800 AD. One manifestation of that: Two of the largest reservoirs in the US, Lake Mead and Lake Powell, are down to one-third of their capacity ("no diving" signs coming soon). The researchers attributed about one-fifth of the drought to human-caused climate change.
 Trump accountant can't stand behind financial statements. Mazars USA, former President Trump's longtime accounting firm, said the annual financial statements it had prepared for Trump and his company, the Trump Organization, were not reliable. These revelations were found in a letter that was published as part of a New York investigation into whether Trump illegally exaggerated the value of his assets. While Mazars couldn't conclude that the statements "contain material discrepancies," it said it would cut ties with the Trump Organization over conflicts of interest.
 Meta sued in Texas over facial recognition: The Texas attorney general filed a massive lawsuit against Meta, claiming that Facebook's recently discontinued use of facial recognition technology violated the state's privacy protections. Given the $25,000-per-violation penalty attached to the state law and the alleged "tens of millions" of violations, the suit seeks civil penalties in the hundreds of billions, according to WSJ.
| | Matthew Stockman/Getty Images The only thing that could distract us from Matt Hamilton's mustache yesterday was the ruling by the Court of Arbitration for Sports (CAS) that star Russian figure skater Kamila Valieva can continue competing at the Olympics despite a positive drug test. The International Olympic Committee added that if Valieva wins the individual competition (and she's favored to), she won't receive a medal until a full investigation is concluded. The backstory: Valieva, 15, tested positive for trimetazidine, a banned heart drug that is sometimes used to increase stamina in athletes, at the Russian championship in late December. When the results came back February 8, officials postponed the team skating competition medal ceremony—where the Russians thought they'd be accepting gold. The decision to let Valieva continue competing did not exactly score a perfect 10 among Western Olympics leaders, who bashed the ruling. Sarah Hirshland, the CEO of the US Olympic and Paralympic Committee, called it "another chapter in the systemic and pervasive disregard for clean sport by Russia." But the CAS panel said that because Valieva is under 16, she's considered a "protected person" and shouldn't be suspended due, in part, to the "irreparable harm" she would suffer if not allowed to continue skating. Big picture: While we don't know whether Valieva administered the drug herself or it was given to her, it highlights the influence of coaches and other adults on a sport dominated by teenagers.—MM | | | It's been more than 50 years since the first successful knee replacement surgery. Unfortunately, today's surgeons are still swapping out knees using tech that predates the moon landing. Call it a flex, but Monogram thinks they can do better. Using powerful software and precise robotic technology, Monogram believes its implants will make knee replacement surgery safer, more accurate, and highly customized. And thanks to the power of 3D printing, each implant is built to fit and last. Monogram is building the infrastructure necessary to meet the growing demand for knee implants. And right now, Monogram is calling for investors to help them bring this technology to market. You'll join the nearly 11,000 investors who've already raised over $17 million to disrupt this $19 billion orthopedic implant industry. Invest in Monogram today—you've only got until Feb. 18 to get in. | | Seinfeld/NBC via Giphy SEC Chair Gary Gensler watched one too many crypto commercials during the Super Bowl and decided to do something about it. On Monday, his agency said that crypto firm BlockFi would pay $100 million to the SEC and 32 states over charges that it had violated securities law. The penalty is the agency's largest ever against a cryptocurrency company. BlockFi, a banklike crypto company backed by Peter Thiel, didn't admit or deny the SEC's findings but did agree to stop opening new lending accounts to customers in the US. So what led to the penalty? A timeline of events: - BlockFi amassed hundreds of thousands of users in the US by offering interest-accruing crypto accounts.
- But those accounts needed to be registered as a security with the SEC, which the agency said BlockFi didn't do.
- According to the SEC, BlockFi misled users by downplaying the risk involved in such accounts—the agency claims that if there were a run on assets, BlockFi wouldn't have been able to maintain interest rates or return crypto to users.
In addition to paying the penalty, BlockFi plans to create and register a new crypto lending product called BlockFi Yield. As of December, the company's assets totaled more than $10 billion.—MK | | Coinbase Stat: A few pixels can go a long way. Coinbase said its QR code Super Bowl ad, which promised $15 in bitcoin to new users, drew more than 20 million hits to its landing page in one minute, briefly crashing the app. The ad also helped Coinbase rocket from 186th place on Apple's App Store to 2nd. Quote: "The blockades are harming our economy and endangering public safety. We cannot and will not allow illegal and dangerous activities to continue." Prime Minister Justin Trudeau did what no Canadian government has ever done and invoked the Emergencies Act in order to quell protests that have paralyzed downtown Ottawa for weeks. This law grants the government the power to restrict certain civil liberties—such as public assembly and travel—for 30 days. Read: Sinking 1,000 NYC subway cars in the Atlantic to create a reef didn't go as planned. (Fast Company) | | - A judge said he's throwing out Sarah Palin's libel lawsuit against the NYT after concluding the former Alaska governor couldn't prove that the newspaper acted with malice when it ran an Op-Ed falsely linking a mass shooting to Palin's political action committee.
- Peloton's new CEO Barry McCarthy dismissed rumors of a sale, saying he wouldn't be moving from CA to NY to oversee a company that's about to be sold.
- Microsoft said many US employees have to be back at its offices starting Feb. 28 as Covid case numbers drop.
- The US will face rival Canada in the women's hockey gold medal game. Make sure you drink an evening brew, because the puck drops at 11:10pm ET Thursday.
| | Keep teams motivated with meal options from 780,000 restaurant partners globally. Uber for Business lets your team and clients order meals and request rides wherever they're working. Schedule in advance or send vouchers for added flexibility and convenience. Fast, simple, built for expensing. Sign up for free.* Convenient, frozen, and good for you  . That's what Daily Harvest delivers—from their sherbet-like Strawberry + Peach Smoothie to their Cauliflower Rice + Pesto Harvest Bowl that tastes like pesto risotto  . Get up to $40 off your first box here.* To be the best, you have to study the best. Which is why you should read The Profile, a digestible newsletter featuring stories of the most successful people and companies. Check it out. Trippy, but in the best way: Cartoon characters made into real life through artificial intelligence. Wordle for mapheads: Try either Globle or Worldle. *This is sponsored advertising content | | Brew Mini: Starting this week, our Tuesday Minis will be on the less challenging side, while Thursday Minis will give your brain a more strenuous workout. Try today's puzzle here. Guess the company We'll give you a few facts about a company, and you have to identify it. - Founded: 1995
- HQ: San Jose, CA
- CEO: Jamie Iannone
- Public? Yes, since 1998
- # of employees: 12,700, as of 2020
- Former subsidiaries include Skype and StubHub
| | | Written by Neal Freyman, Matty Merritt, and Max Knoblauch Was this email forwarded to you? Sign up here. WANT MORE BREW? Industry news, with a sense of humor → - Emerging Tech Brew: AI, crypto, space, autonomous vehicles, and more
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Tips for smarter living → - Money Scoop: your personal finance upgrade
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