Firstmac reports data breach | Jhonlin Group's palm oil deforestation sparks concern | Red Lobster closes outlets amid looming bankruptcy

In today’s Portfolio Intelligence Daily:?

• Firstmac reports data breach
• Jhonlin Group's palm oil deforestation sparks concern
• Red Lobster closes outlets amid looming bankruptcy

Our analyst team curates these summaries from Auquan’s Intelligence Engine, which uses generative AI and retrieval augmented generation (RAG) to uncover material non-financial insights at scale to support deal sourcing, due diligence, risk monitoring, and compliance.

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• How RAG completes the generative AI puzzle (InfoWorld) — Retrieval-augmented generation brings to generative AI the one big thing that was holding it back in the enterprise.
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Firstmac reports data breach

Firstmac Limited, a significant player in Australia's financial services industry, discloses a data breach.

• The disclosure comes in the wake of the new Embargo cyber-extortion group's alleged leak of over 500GB of data from Firstmac, raising concerns about data security and customer privacy.?

• Firstmac, headquartered in Brisbane, Queensland, and employing 460 people, has issued 100,000 home loans and currently manages $15 billion in mortgages.
• Recipients of breach notices are offered free identity theft protection services through IDCare and are advised to remain vigilant against unsolicited communications and monitor their account activity for unusual transactions.
• It remains unclear whether Embargo directly executed the breach or obtained the stolen data from third parties for extortion purposes.

Select timeline

• May 12, 2024 | Largest non-bank lender in Australia warns of a data breach (Bleeping Computer)
• May 14, 2024 | Mortgage lender Firstmac suffers cyberattack, customer data including driver's license numbers and banking details leaked (ABC)
• May 14, 2024 | Mortgage lender suffers hack, credit card details published on dark web (The Sydney Morning Herald)

Jhonlin Group's palm oil deforestation sparks accusations

Satellite analysis reveals massive deforestation for palm oil on a small island near southern Borneo.

• The concession, owned by PT Multi Sarana Agro Mandiri (MSAM) of the Jhonlin Group, cleared 10,650 hectares from 2022-2023.
• Activists call for investigation, alleging corruption in obtaining permits, but law enforcement has been unresponsive.
• MSAM has a history of persecuting journalists and activists who expose its practices.
• Despite calls for scrutiny, the company remains operational, prompting concerns over environmental destruction and legal compliance.

Select timeline

• May 13, 2024 | Latest palm oil deforester in Indonesia may also be operating illegally (Mongabay)
• April 22, 2022 | Five industrial tree plantation companies responsible for 3,000 ha of forest clearing first quarter 2022 (Aid Environment)
• February 9, 2021 | Three palm oil firms were responsible for a quarter of deforestation in Indonesia, Malaysia and Papua New Guinea in 2020 (Display Daily)

Red Lobster closes outlets amid looming bankruptcy

Red Lobster is closing at least 48 locations across several states, with California and Florida losing five each, and Maryland and Colorado losing four each.

• Restaurant liquidator TAGeX Brands is conducting an online auction of kitchen equipment from these closed locations, describing it as the "largest restaurant equipment auction ever."
• The closures are abrupt, with reports of some locations suddenly shutting down without notice, causing concern for employees and communities.
• The company has faced challenges including turnover in executive positions and financial losses, notably due to an "Ultimate Endless Shrimp" promotion that resulted in an operating loss of over $11 million in Q3 of 2023.
• Parent company Thai Union Group announced earlier this year its intention to sell its stake in Red Lobster, citing various challenges including the COVID-19 pandemic and rising costs.

Select timeline

• May 14, 2024 | Red Lobster Closes Outlets Amid Looming Bankruptcy (Fox Business)
• May 14, 2024 | Red Lobster is closing dozens of restaurants and auctioning off furniture, equipment (WBTW News)
• May 14, 2024 | Red Lobster is closing down over 50 locations, and everything must go (Business Insider)

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