A corporate collapse typically involves the

insolvency In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet i ...

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

of a major business enterprise. A corporate scandal involves alleged or actual unethical behavior by people acting within or on behalf of a corporation. Many recent corporate collapses and scandals have involved false or inappropriate

accounting Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "languag ...

of some sort (see list at

accounting scandals Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "languag ...

List of major corporate collapses

The following list of corporations involved major collapses, through the risk of job losses or size of the business, and meant entering into

, or being

nationalised Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to pri ...

or requiring a non-market loan by a government.

List of scandals without insolvency

Australia & New Zealand Banking Group The Australia and New Zealand Banking Group Limited (ANZ) is an Australian multinational banking and financial services company headquartered in Melbourne, Victoria. It is Australia's second-largest bank by assets and fourth-largest bank by ma ...

scandal involving misleading file notes in the

Financial Ombudsman Service (Australia) The Financial Ombudsman Service (FOS) was a member-funded Australian ombudsman service that provided external dispute resolution for consumers who were unable to resolve complaints with member financial services organisations. the FOS had app ...

presented to the

Supreme Court of Victoria The Supreme Court of Victoria is the highest court in the Australian state of Victoria. Founded in 1852, it is a superior court of common law and equity, with unlimited and inherent jurisdiction within the state. The Supreme Court comprises ...

. *

allegations of racial bigotry toward billionaire businessman

Pankaj Oswal Pankaj Oswal is an Indian businessman. He was the chairman and sole founder of Burrup Holdings Limited, a Perth, Australia based company and one of the world's largest liquid ammonia production companies. Oswal has an estimated fortune of over A$ ...

and his wife. Court was presented with emails where an ANZ staff member comments to ANZ CEO Mike Smith: "We are dealing with Indians with no moral compass and an Indian woman as every bit as devious as PO (Mr Oswal)." *

toxic culture. Court case where allegations were made by ex-employees that the bank's senior management tolerated drugs and strip clubs. *

alleged manipulation of the Australian benchmark interest rates. ANZ is currently being pursued by the

Australian Securities and Investments Commission The Australian Securities and Investments Commission (ASIC) is an independent commission of the Australian Government tasked as the national corporate regulator. ASIC's role is to regulate company and financial services and enforce laws to pro ...

, which filed an originating process in the Federal Court of Australia against ANZ in March 2016. *

BAE Systems BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenues. ...

bribery scandal related to the

Al-Yamamah arms deal Al Yamamah ( ar, اليمامة, translation=The Dove) is the name of a series of record arms sales by the United Kingdom to Saudi Arabia, paid for by the delivery of up to of crude oil per day to the British government. The prime contracto ...

with Saudi Arabia *

Bristol-Myers Squibb The Bristol Myers Squibb Company (BMS) is an American multinational pharmaceutical company. Headquartered in New York City, BMS is one of the world's largest pharmaceutical companies and consistently ranks on the ''Fortune'' 500 list of the lar ...

accounting scandal *

British Airways British Airways (BA) is the flag carrier airline of the United Kingdom. It is headquartered in London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a populati ...

, for the " Dirty Tricks" scandal against

Virgin Atlantic Virgin Atlantic, a trading name of Virgin Atlantic Airways Limited and Virgin Atlantic International Limited, is a British airline with its head office in Crawley, England. The airline was established in 1984 as British Atlantic Airways, and w ...

Brown & Williamson Brown & Williamson Tobacco Corporation was a U.S. tobacco company and a subsidiary of multinational British American Tobacco that produced several popular cigarette brands. It became infamous as the focus of investigations for chemically enhancing ...

, for chemically enhancing the addictiveness of cigarettes, becoming the leading edge of the tobacco industry scandals of the 1990s, eventually resulting in the

Tobacco Master Settlement Agreement The Tobacco Master Settlement Agreement (MSA) was entered on November 23, 1998, originally between the four largest United States tobacco companies ( Philip Morris Inc., R. J. Reynolds, Brown & Williamson and Lorillard – the "original participati ...

Chevron Chevron (often relating to V-shaped patterns) may refer to: Science and technology * Chevron (aerospace), sawtooth patterns on some jet engines * Chevron (anatomy), a bone * '' Eulithis testata'', a moth * Chevron (geology), a fold in rock ...

Texaco Texaco, Inc. ("The Texas Company") is an American Petroleum, oil brand owned and operated by Chevron Corporation. Its flagship product is its Gasoline, fuel "Texaco with Techron". It also owned the Havoline motor oil brand. Texaco was an Indepe ...

Lago Agrio oil field The Lago Agrio oil field is an oil-rich area near the city of Nueva Loja in the province of Sucumbíos, Ecuador. It is located in the Western Oriente Basin. The site's hydrocarbon-bearing formations are the Cretaceous Napo and Hollin formation ...

pollution scandal *

Commonwealth Bank The Commonwealth Bank of Australia (CBA), or CommBank, is an Australian multinational bank with businesses across New Zealand, Asia, the United States and the United Kingdom. It provides a variety of financial services including retail, busines ...

facts uncovered that showed the insurance arm of the bank denied life insurance policy holders despite having legitimate claims, resulting in calls for a Royal Commission into the Australian insurance industry. *

provision of unsuitable financial advice to a large number of customers between 2003 and 2012 and continuous delay in providing compensation to victims. *

Compass Group Compass Group plc is a British multinational contract foodservice company headquartered in Chertsey, England. It is the largest contract foodservice company in the world employing over 500,000 people. It serves meals in locations including off ...

, bribed the

United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be ...

in order to win business *

Corrib gas controversy The Corrib gas controversy was a social protest campaign against the Corrib gas project in north-western County Mayo, Ireland. The project involves the processing of gas onshore through Broadhaven and Sruth Fada Conn Bays in Kilcommon. Original ...

Kilcommon, Erris, Co. Mayo, Ireland *

Deutsche Bank Deutsche Bank AG (), sometimes referred to simply as Deutsche, is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Sto ...

, spying scandal *

Libor scandal, agreed to a combined US$2.5 billion in fines *

Duke Energy Duke Energy Corporation is an American electric power and natural gas holding company headquartered in Charlotte, North Carolina. Overview Based in Charlotte, North Carolina, Duke Energy owns 58,200 megawatts of base-load and peak generation in ...

El Paso Corp. El Paso Corporation was a provider of natural gas and related energy products and was one of North America's largest natural gas producers until its acquisition by Kinder Morgan in 2012. It was headquartered in Houston, Texas. United States. Pr ...

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the N ...

, underreporting of

profit Profit may refer to: Business and law * Profit (accounting), the difference between the purchase price and the costs of bringing to market * Profit (economics), normal profit and economic profit * Profit (real property), a nonpossessory intere ...

Firestone Tire & Rubber Company Firestone Tire and Rubber Company is a tire company founded by Harvey Firestone (1868–1938) in 1900 initially to supply solid rubber side-wire tires for fire apparatus, and later, pneumatic tires for wagons, buggies, and other forms of wheeled ...

, part of the

General Motors streetcar conspiracy The General Motors streetcar conspiracy refers to the convictions of General Motors (GM) and related companies that were involved in the monopolizing of the sale of buses and supplies to National City Lines (NCL) and subsidiaries, as well as to ...

, labor controversies,

Firestone and Ford tire controversy The Firestone and Ford tire controversy of the 1990s saw hundreds of people die in automobile crashes caused by the failure of Firestone tires installed on light trucks made by Ford Motor Company. Unusually high failure rates of P235/75R15 ATX, ...

Forced labour under German rule during World War II The use of slave and forced labour in Nazi Germany (german: Zwangsarbeit) and throughout German-occupied Europe during World War II took place on an unprecedented scale. It was a vital part of the German economic exploitation of conquered t ...

, financial enrichment by several major companies *

Ford Pinto The Ford Pinto is a subcompact car that was manufactured and marketed by Ford Motor Company in North America from 1971 until 1980 model years. The Pinto was the first subcompact vehicle produced by Ford in North America. The Pinto was marketed ...

, fuel tank scandal *

scandal involving misleading file notes in the

presented to the Victorian Supreme Court. *

Global Crossing Global Crossing was a telecommunications company that provided computer networking services and operated a tier 1 carrier. It maintained a large backbone network and offered peering, virtual private networks, leased lines, audio and video con ...

Guinness share-trading fraud The Guinness share-trading fraud was a major business scandal of the 1980s. It involved the manipulation of the London stock market to inflate the price of Guinness shares to thereby assist Guinness's £4 billion takeover bid for the Scottish dr ...

* Hafskip's collapse *

Halliburton Halliburton Company is an American multinational corporation responsible for most of the world's hydraulic fracturing operations. In 2009, it was the world's second largest oil field service company. It has operations in more than 70 countries ...

overcharging government contracts * Harken Energy Scandal *

HealthSouth Encompass Health Corporation, based in Birmingham, Alabama, is one of the United States' largest providers of post-acute healthcare services, offering both facility-based and home-based post-acute services in 36 states and Puerto Rico through its ...

reporting exaggerated earnings *

Hewlett-Packard spying scandal On September 5, 2006, Newsweek revealed that Hewlett-Packard's general counsel, at the behest of HP chairwoman Patricia Dunn, had contracted a team of independent security experts to investigate board members and several journalists in order to ...

Hospital Corporation of America HCA Healthcare is an American for-profit operator of health care facilities that was founded in 1968. It is based in Nashville, Tennessee, and, as of May 2020, owns and operates 186 hospitals and approximately 2,000 sites of care, including sur ...

Homestore.com Move, Inc. is a real estate listing company based in Santa Clara, California. The company operates the Move Network of real estate websites, the largest of which is Realtor.com. Move has a longstanding partnership with the National Association of R ...

KBC Bank KBC Group is a Belgian universal multi-channel bank-insurer, focusing on private clients and small and medium-sized enterprises in Belgium, Bulgaria, Czech Republic, Hungary, and Slovakia. It was created in 1998 through the merger of Kredietbank ...

human rights scandal *

Kerr-McGee The Kerr-McGee Corporation, founded in 1929, was an American energy company involved in oil exploration, production of crude oil, natural gas, perchlorate and uranium mining and milling in various countries. On June 23, 2006, Anadarko Petroleum ...

, the

Karen Silkwood Karen Gay Silkwood (February 19, 1946 – November 13, 1974) was an American chemical technician and labor union activist known for raising concerns about corporate practices related to health and safety in a nuclear facility. She w ...

case *

Kinney National Company Kinney National Service, Inc. (later known as Kinney Services, Inc.) was an American conglomerate company from 1966 to 1972. Its successors were National Kinney Corporation and Warner Communications, Time Warner, AOL Time Warner, and WarnerMedia ...

financial scandal *

Lernout & Hauspie Lernout & Hauspie Speech Products, or L&H, was a Belgium-based speech recognition technology company, founded by Jo Lernout and Pol Hauspie, that went bankrupt in 2001 because of a fraud engineered by the management. The company was based in Ypr ...

accounting fraud * Lockheed bribery scandal in Germany, Japan, and Netherlands *

Livedoor was a Japanese company that functioned as an Internet service provider and operator of a web portal and blog platform before being brought down by a scandal in 2006. The company was founded and led in its first 10 years by Takafumi Horie, known a ...

scandal *

Luxembourg Leaks Luxembourg Leaks (sometimes shortened to Lux Leaks or LuxLeaks) is the name of a financial scandal revealed in November 2014 by a journalistic investigation conducted by the International Consortium of Investigative Journalists. It is based o ...

. Luxembourg under

Jean-Claude Juncker Jean-Claude Juncker (; born 9 December 1954) is a Luxembourgish politician who served as the 21st Prime Minister of Luxembourg from 1995 to 2013 and 12th President of the European Commission from 2014 to 2019. He also served as Finance Minister ...

's premiership had turned into a major European centre of corporate

tax avoidance Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law. A tax shelter is one type of tax avoidance, and tax havens are jurisdict ...

. *

Marsh McLennan Marsh & McLennan Companies, Inc., doing business as Marsh McLennan, is a global professional services firm, headquartered in New York City with businesses in insurance brokerage, risk management, reinsurance services, talent management, investme ...

Merck Merck refers primarily to the German Merck family and three companies founded by the family, including: * the Merck Group, a German chemical, pharmaceutical and life sciences company founded in 1668 ** Merck Serono (known as EMD Serono in the Unite ...

Medicaid fraud Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and pers ...

investigation *

Mirant GenOn Energy Holdings, formerly Mirant Corporation, was a subsidiary of GenOn Energy, and is now a part of NRG Energy. The company was spun off from its former parent, Southern Company, on April 2, 2001. The company was merged into GenOn Energy o ...

* Morrison-Knudsen scandal. Led to

William Agee William McReynolds Agee (January 5, 1938 – December 20, 2017) was an American business executive. In 1976 at age 38, he was appointed president and chief executive officer (CEO) of the Bendix Corporation. From 1988 to 1995, Agee was the chair ...

's ouster *

Mutual-fund scandal (2003) The mutual fund scandal of 2003 was the result of the discovery of illegal late trading and market timing practices on the part of certain hedge fund and mutual fund companies. Spitzer investigation On September 3, 2003, New York Attorney General ...

Nestlé Nestlé S.A. (; ; ) is a Switzerland, Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other me ...

Nugan Hand Bank Nugan Hand Bank was an Australian merchant bank that collapsed in 1980 after the suicide of one of its founders, Australian lawyer Francis John Nugan, resulting in a major scandal. News stories suggested that the bank had been involved in illega ...

Olympus Scandal The Olympus scandal was a case of accounting fraud exposed in Japan in 2011 at optical equipment manufacturer Olympus. On 14 October, British-born Michael Woodford was suddenly ousted as chief executive. He had been company president for si ...

Options backdating In finance, options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which the underlying stock price was lower. This is a way of repricing options to make them more v ...

involving over 100 companies * Pacific Gas & Electric Company,

2017 California wildfires In terms of property damage, 2017 was the most destructive wildfire season on record in California at the time, surpassed by only the 2018 season and the 2020 season, with a total of 9,560 fires burning of land, according to the California Dep ...

2018 California wildfires The 2018 wildfire season was the deadliest and most destructive wildfire season in California history. It was also the largest on record at the time, now third after the 2020 and 2021 California wildfire seasons. In 2018, there were a total of ...

Panama Papers The Panama Papers ( es, Papeles de Panamá) are 11.5 million leaked documents (or 2.6 terabytes of data) that were published beginning on April 3, 2016. The papers detail financial and attorney–client information for more than 214,488 ...

International. Leak of hundreds of thousands of confidential documents pertaining to the bank accounts and companies held by politicians,

High-net-worth individual High-net-worth individual (HNWI) is a term used by some segments of the financial services industry to designate persons whose investible wealth (assets such as stocks and bonds) exceeds a given amount. Typically, these individuals are defined ...

s and other people, some in off-shore tax havens. The focus was

Panama Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Cos ...

law firm

Mossack Fonseca Mossack Fonseca & Co. () was a Panamanian law firm and Corporate services, corporate service provider.Paradise Papers The Paradise Papers are a set of over 13.4 million confidential electronic documents relating to offshore investments that were leaked to the German reporters Frederik Obermaier and Bastian Obermayer, from the newspaper'' Süddeutsch ...

leak *

Peregrine Systems Peregrine Systems, Inc. was an enterprise software company, founded in 1981, that sold enterprise asset management, change management, and ITIL-based IT service management software. Following an accounting scandal and bankruptcy in 2003, Peregri ...

corporate executives convicted of accounting fraud *

Phar-Mor Phar-Mor (stylized as PHA℞-MOR) was a United States chain of discount drug stores, based in Youngstown, Ohio, and founded by Michael "Mickey" Monus and David Shapira in 1982. Some of its stores used the names Pharmhouse and Rx Place (purchas ...

company lied to shareholders. CEO eventually sentenced to prison for fraud and company eventually became bankrupt *

Qwest Communications Qwest Communications International, Inc. was a United States telecommunications carrier. Qwest provided local service in 14 western and midwestern U.S. states: Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dako ...

RadioShack RadioShack, formerly RadioShack Corporation, is an American retailer founded in 1921. At its peak in 1999, RadioShack operated over 8,000 worldwide stores named RadioShack or Tandy Electronics in the United States, Mexico, United Kingdom, Austra ...

CEO

David Edmondson David J. Edmondson (born June 10, 1959) is an American businessman, known for his career at RadioShack and his termination as CEO for falsifying his educational background. Early life and education David J. Edmondson was born June 10, 1959, in ...

lied about attaining a B.A. degree from Pacific Coast Baptist College in

California California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...

Reliant Energy Reliant Energy is an American energy company based in Houston, Texas. History Headquartered in Houston, Texas, Reliant Energy, a subsidiary of NRG Energy, is one of the largest Texas electricity providers serving over 1.5 million Texans. Reliant ...

Rite Aid Rite Aid Corporation is an American drugstore chain based in Philadelphia, Pennsylvania. It was founded in 1962 in Scranton, Pennsylvania, by Alex Grass under the name Thrift D Discount Center. The company ranked No. 148 in the Fortune 500 lis ...

accounting fraud *

Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New Yo ...

overstated its

oil reserves An oil is any polarity (chemistry), nonpolar chemical substance that is composed primarily of Hydrocarbon, hydrocarbons and is hydrophobe, hydrophobic (does not mix with water) & lipophilicity, lipophilic (mixes with other oils). Oils are usu ...

twice, it downgraded , or about 20 percent of its total holdings. *

S-Chips Scandals S chips () are Chinese companies listed on the Singapore Exchange. Their shares are known as S shares. S chips are incorporated in Singapore, the British Virgin Islands, the Cayman Islands and Bermuda and have their business operations in mainland C ...

, Singapore *

Satyam Computers Mahindra Satyam (formerly Satyam Computer Services Limited) was an Indian information technology (IT) services company based in Hyderabad, India, offering software development, computer maintenance, system maintenance, packaged software integr ...

, India *

7-Eleven 7-Eleven, Inc., stylized as 7-ELEVE, is a multinational chain of retail convenience stores, headquartered in Dallas, Texas. The chain was founded in 1927 as an ice house storefront in Dallas. It was named Tote'm Stores between 1928 and 1946. A ...

Australia. Allegations of bullying tactics, underpayment of wages and entitlements. * Siemens Greek bribery scandal, involving cases of bribery on behalf of

Siemens Siemens AG ( ) is a German multinational conglomerate corporation and the largest industrial manufacturing company in Europe headquartered in Munich with branch offices abroad. The principal divisions of the corporation are ''Industry'', '' ...

towards the

Greek Government Greece is a parliamentary representative democratic republic, where the President of Greece is the head of state and the Prime Minister of Greece is the head of government within a multi-party system. Legislative power is vested in both the g ...

Société Générale Société Générale S.A. (), colloquially known in English as SocGen (), is a French-based multinational financial services company founded in 1864, registered in downtown Paris and headquartered nearby in La Défense. Société Générale ...

, derivatives trading scandal causing multibillion-euro losses *

Southwest Airlines Southwest Airlines Co., typically referred to as Southwest, is one of the major airlines of the United States and the world's largest low-cost carrier. It is headquartered in Dallas, Texas, and has scheduled service to 121 destinations in the U ...

, violations of safety regulations *

SunTrust Banks SunTrust Banks, Inc. was an American bank holding company with SunTrust Bank as its largest subsidiary and assets of US$199 billion as of March 31, 2018. The bank's most direct corporate parent was established in 1891 in Atlanta, where it was h ...

, "claims of shoddy mortgage lending, servicing and foreclosure practices." *

Tesla Inc Tesla, Inc. ( or ) is an American multinational automotive and clean energy company headquartered in Austin, Texas. Tesla designs and manufactures electric vehicles (electric cars and trucks), battery energy storage from home to grid- ...

, involving "420 funding secured" private buyout scheme resulting in fraud charges against CEO

Elon Musk Elon Reeve Musk ( ; born June 28, 1971) is a business magnate and investor. He is the founder, CEO and chief engineer of SpaceX; angel investor, CEO and product architect of Tesla, Inc.; owner and CEO of Twitter, Inc.; founder of The Bori ...

Tyco International Tyco International plc was a security systems company incorporated in the Republic of Ireland, with operational headquarters in Princeton, New Jersey, United States (Tyco International (US) Inc.). Tyco International was composed of two major bu ...

, executive theft and prison sentence *

Union Carbide Union Carbide Corporation is an American chemical corporation wholly owned subsidiary (since February 6, 2001) by Dow Chemical Company. Union Carbide produces chemicals and polymers that undergo one or more further conversions by customers befor ...

, the

Bhopal disaster The Bhopal disaster, also referred to as the Bhopal gas tragedy, was a chemical accident on the night of 2–3 December 1984 at the Union Carbide India Limited (UCIL) pesticide plant in Bhopal, Madhya Pradesh, India. Considered the world's wo ...

ValuJet ValuJet Airlines, later known as AirTran Airlines after joining forces with AirTran Airways, was an ultra low-cost U.S. airline, headquartered in unincorporated Clayton County, Georgia, that operated regularly scheduled domestic and interna ...

, loading live oxygen generators into cargo hold of passenger jet causing fatal crash *

Volkswagen emissions violations The Volkswagen emissions scandal, sometimes known as Dieselgate or Emissionsgate, began in September 2015, when the United States Environmental Protection Agency (EPA) issued a notice of violation of the Clean Air Act to German automaker Vol ...

, fraud in diesel motors pollution measurements * David Wittig "looting" scandals *

Xerox Xerox Holdings Corporation (; also known simply as Xerox) is an American corporation that sells print and electronic document, digital document products and services in more than 160 countries. Xerox is headquartered in Norwalk, Connecticut (ha ...

alleged accounting irregularities involving auditor

KPMG KPMG International Limited (or simply KPMG) is a multinational professional services network, and one of the Big Four accounting organizations. Headquartered in Amstelveen, Netherlands, although incorporated in London, England, KPMG is a net ...

, causing restatement of financial results for the years 1997 through 2000 and fines for both companies

Notes

External links

33 biggest corporate implosions
{{Portal bar, Companies Corporate crime Political corruption Fraud

List of major corporate collapses

List of scandals without insolvency

See also

Notes

Further reading

External links