Facebook faces suit over private messages

Facebook is facing a class action over its private messaging function.

HONG KONG (CNNMoney)

The lawsuit filed earlier this week alleges that Facebook (FB, Fortune 500) scans messages between users labeled "private" for links and other information that can be sold to advertisers, marketers and data aggregators.

According to the suit, this is done without proper disclosure or the consent of users.

The suit was filed by Matthew Campbell and Michael Hurley in a U.S. district court in Northern California. They want the suit to be made a class action, and suggest that as many as 166 million Facebook users in the U.S. would be eligible to join.

Campbell and Hurley claim that intercepting and using links included in private messages violates the Electronic Communications Privacy Act, as well as California privacy and unfair competition laws.

Facebook did not immediately respond to a request for comment on Friday. Other media reported that Facebook believes the allegations to be "without merit."

Related story: Online privacy is dead

The social network's business model depends in large part on its ability to pinpoint and target individuals sought by advertisers.

The suit argues Facebook has overstepped the mark.

"Facebook's desire to harness the myriad data points of its users has led to overreach and intrusion ... as it mines its account holders' private communications for monetary gain," the plaintiffs allege.

Other tech firms, including Google (GOOG, Fortune 500), have faced lawsuits over the collection of user information. Facebook previously settled a class action over targeted advertising for $20 million.

Frequent changes to Facebook's privacy settings have also angered some users. In addition, CEO Mark Zuckerberg has made controversial statements about how people shouldn't be doing the things they want to keep secret in the first place.

First Published: January 3, 2014: 6:29 AM ET

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Job search: One year and counting...

NEW YORK (CNNMoney)

It's a goal that was out of reach in 2013, despite her best efforts. After she was laid off from an IT analysis job at a regional bank, Rouse was unemployed all year long.

What's the problem? It certainly wasn't a lack of skills. She has two masters degrees (one in business and another in IT) and about 22 years of work experience.

"Hiring managers tell me I'm overqualified," she said.

It also wasn't a lack of trying. She sent out hundreds of job applications, and even told recruiters she would be willing to work for less than her previous salary.

And it wasn't the location either. Rouse lives in Columbus, Ohio -- the largest city in the state, home of five Fortune 500 companies, and one of few Midwestern cities which has gained back just about all the jobs it lost in the recession, according to the Labor Department.

Related: Help! My unemployment benefits just expired

Rouse is far from alone.

About 5.5 million Americans looked for jobs in 2012, but didn't work at all that year, according to the Bureau of Labor Statistics. The 2013 data won't be available until later this year, but it's safe to say the numbers remain elevated, even as the job market improves gradually.

Will 2014 finally be the year that the long-term unemployed get back to work?

The job market seems to be gaining momentum, and economists hope the long-term unemployed won't be left out in the cold. So far, the signs aren't very encouraging though.

In December, job growth continued at a solid pace, but the number of people who've been unemployed for more than six months simultaneously increased. It appeared that most of the jobs had gone to those who had been unemployed for shorter periods of time.

"I've heard from recruiters at larger companies, and they will absolutely tell you they don't like to hire long-term unemployed people," Rouse said. "They think our skills are less sharp."

As of December, 37% of the unemployed had been so for at least six months.

The good news is, Rouse is starting to sense a turning point in the job market. After almost nine months with no calls, she started getting interviews in the last three months of the year.

"At first, I couldn't have paid anyone to read my résumé," she said. "Now I have a lot of calls, a lot of interviews. I've also been working with multiple staffing agencies."

Still, a job cannot come fast enough. The long-term unemployment problem lingers just as Congress failed to extend its emergency federal unemployment benefits. As a result, 1.3 million Americans suddenly stopped receiving their benefits.

Rouse received her last check this week. After a year without a job, she's depleted much of her 401(k) and even sold some of her jewelry.

"Now I'm at that point where I'm waiting to hear back. If I don't get one of those two jobs I just applied for, I'm thinking I'll probably have to move in with my father," she said.

"Just because someone cannot find a job for a long period of time, doesn't mean there's something wrong with the worker -- there really are a lot of good qualified people looking for work."

First Published: January 3, 2014: 5:58 AM ET

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Stocks hesitant after New Year dip

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures were mixed, bouncing around between small gains and losses ahead of the open Friday.

The Dow Jones industrial average fell more than 130 points, or nearly 1%, on Thursday. The S&P 500 and Nasdaq also declined by about 1% on the first trading day of 2014.

Some market experts say Thursday's fall was triggered by investors looking to lock in gains after the record-setting run in 2013.

"Market participants booked profits even in the face of decent economic data out of the U.S.," wrote ETX Capital market strategist Ishaq Siddiqi in a note.

Related: Fear & Greed Index, gets greedy

There is little in the way of U.S. economic and corporate reports scheduled for release Friday. The nation's automakers will announce their sales for December and all of 2013 throughout the day.

European markets were edging higher in morning trading. France's CAC 40 was up by roughly 0.5%.

Major Asian markets ended in the red, with Hong Kong's Hang Seng dropping by 2.2%.

Markets in Shanghai and Tokyo were closed for an extended new year break.

First Published: January 3, 2014: 5:10 AM ET

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Ford to debut solar car

The solar cells in the new Ford C-Max Solar Energi, to be unveiled at the Consumer Electronics Show.

NEW YORK (CNNMoney)

The car, a concept vehicle not ready for dealer showrooms, is a version of the C-Max Energi plug-in car already sold by Ford (F, Fortune 500).

Like the C-Max Energi, the new C-Max Solar Energi can go 21 miles on electricity between charges. It then can switch over and run on gasoline until it is recharged.

The concept car's roof is covered with a solar cells provided by SunPower Corp (SPWR).

But because it takes awhile to charge, Ford has also teamed with Georgia Tech to offer a special car port for charging.

Ford calls it an "off-vehicle solar concentrator" -- essentially, a magnifying glass that can track the sun as it moves across the sky. The car port boosts the power that can be collected from sunlight by a factor of eight, according to Ford, allowing a full 8 kilowatt charge over the course of a day. The glass was originally designed for a lighthouse.

Related: Ford's aluminum F-150 gamble

Ford said its internal data show that the sun could power up to 75% of all trips made by an average driver. And it estimates that the solar C-Max could reduce the annual greenhouse gas emissions a typical owner would produce by four metric tons.

Besides the C-Max Energi, Ford also has a plug-in version of the Ford Fusion mid-size sedan, the Fusion Energi.

Related: Coolest supercars of 2013

According to Ford, it sold about 85,000 hybrids, plug-in hybrids and all-electric vehicles in 2013.

Ford said it sold more plug-in vehicles in October and November than both Toyota Motor (TM) and Tesla Motors (TSLA). It also said it is now No. 2 behind only Toyota in the sale of traditional hybrid cars that do not have a plug-in option.

First Published: January 2, 2014: 9:04 AM ET

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Ford gets ready to unveil the aluminum F-150

A concept version of the new F-150 pickup shown at the Detroit auto show a year ago. The redesigned version, which uses significantly more aluminum, is expected to be unveiled at the same show in January.

NEW YORK (CNNMoney)

The new F-150 is expected to use 600 pounds of aluminum, replacing about 1,000 pounds of steel, according to industry consultant Ducker Worldwide. The move accounts for a big chunk of the 750 pounds that Ford has vowed to cut to improve fuel economy.

Some experts believe the truck will be able to get about 30 miles per gallon, up from the 17 to 19 mpg of current models.

A lot is riding on the change for Ford (F, Fortune 500). The F-150 is not only the best-selling pickup, it has been the best-selling U.S. vehicle of any kind for more than three decades.

And it is by far the most profitable vehicle in Ford's lineup.

Related: GM's rare new breed -- a small pickup

"When you have a vehicle that successful, the company almost lives or dies on that model," said Karl Brauer, senior analyst for Kelley Blue Book. "You live in dread of something going wrong with that model, and this is by far the biggest change they've ever made."

Ford has already warned of a hit to profit margins in 2014, and the new F-150 is a contributor.

The 600 pounds of aluminum will likely cost about $800 more than the steel it replaces. Aluminum is also somewhat more difficult to work with and will require a longer shutdown at the two Ford factories that make the truck to prepare for the change.

Another risk: will F-150 buyers be comfortable with buying an aluminum pickup truck.

"There is a high degree of launch risk associated with using so much aluminum," said Mike Wall, auto analyst with IHS Global. "But the payoff is so strong."

Wall said he believes any doubtful truck buyers will be won over by much better fuel economy.

Related: Ford to offer F-150 that runs on natural gas

Ford officials are tight-lipped about their plans, though they did confirm that the new truck will have more aluminum than current models, which have had aluminum hoods since 2004.

"We're already the leader in aluminum use in full-size pickups, and it hasn't been an issue," said Ford spokesman Erich Merkle.

They also say buyers have shown interest in fuel economy, noting that about 40% of the F-150 buyers are choosing a more fuel efficient V6 engine, rather than the traditional V8.

Related: Musk's next target for Tesla - its own 'F-150' pickup

Dick Schultz, managing director of materials practice at Ducker, said his understanding is that the new truck will still have a steel ladder frame that underpins the truck. It will also have a steel cargo box into which owners will load lumber and bricks and other cargo.

"But everything else you can see, other than the cargo box, will be made of aluminum," he said.

He said other automakers are going to have to shift to greater use of aluminum in heavier vehicles if they're going to meet tough new fuel economy regulations. Those standards require manufacturers to have a 54.5 mpg average for all the vehicles they sell by the 2025 model year.

First Published: January 2, 2014: 7:30 AM ET

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Martha Stewart and Macy's settle legal fight

Martha Stewart and Macy's have settled their legal dispute.

NEW YORK (CNNMoney)

The terms of the deal were not disclosed.

Macy's (M, Fortune 500) said the settlement does not end its separate legal claim against J.C. Penney (JCP, Fortune 500).

Shares of all three companies were slightly lower in premarket trading following the announcement.

Martha Stewart Living Omnimedia (MSO) has been selling Martha Stewart-branded products at Macy's since 2006. In December 2011 it reached a deal with J.C. Penney to start selling some of its products there as well, in return for Penney paying $38.5 million for a 16.6% stake in MSLO.

The court battle ensued, even though the products being sold in JC Penney did not include the Martha Stewart name. They were instead branded "JC Penney Everyday" products, a reference to the Martha Stewart Everyday line of products.

In October, J.C. Penney announced it had scaled back its partnership with Martha Stewart in the face of legal pressure from rival Macy's. Penney's is now only selling window treatments and hardware, lighting, rugs and holiday products. Penney's also sold its stake in MSLO.

At that time Macy's issued a statement saying the pull back was a "tacit admission" that the previous agreement to have Penney sell Martha Stewart bed, bath, and kitchen goods was illegal.

-- CNNMoney's James O'Toole contributed to this report

First Published: January 2, 2014: 8:27 AM ET

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Real 'Wolf of Wall Street' says he will give film royalties to victims

Jordan Belfort (left) is portrayed by Leonardo DiCaprio in "The Wolf of Wall Street."

NEW YORK (CNNMoney)

Jordan Belfort, the convicted stock scammer portrayed in a new movie by Leonardo DiCaprio, says he plans to give 100% of the proceeds from the film and the book on which it's based to victims of his fraud.

Belfort was sentenced to four years in prison in 2003 and ordered to pay over $110 million in restitution to his victims -- unsuspecting investors to whom Belfort and his associates in a "boiler room" scam sold worthless stocks. In all, investors lost roughly $250 million before the operation was shut down in 1996.

Belfort served 22 months of his sentence before being released. A judge ordered that he make payments to victims equal to 50% of his monthly income following his release.

As of October, Belfort had contributed only about $11.6 million to the victim fund, according to federal prosecutors. The government moved to hold him in default on his obligations to victims earlier this year, saying the payments he had been making were "insufficient," but that request was later withdrawn pending talks between the two sides.

Related: The real 'Wolf of Wall Street'

In a post on his Facebook page Sunday, Belfort said he planned to boost this total by passing on the entirety of his royalties from the book and movie.

"I am not making a single dime on any of this," Belfort wrote. "This should amount to countless millions of dollars and hopefully be more than enough to pay back anyone who is still out there."

Belfort currently earns a living doing sales training and motivational speeches about his rise and fall. He claims to earn as much as $50,000 a day, according to Bloomberg Businessweek.

"My income comes from [my] new life, which is far better than my old one," Belfort wrote on his Facebook (FB, Fortune 500) page. "I will admit the Quaaludes were kind of fun, at least in the beginning," he added.

Belfort did not immediately respond to a request for comment Tuesday, nor did federal prosecutors.

"The Wolf of Wall Street" opened on Christmas and made $34.3 million during its first five days in theaters, after costing more than $100 million to make. The film has garnered Golden Globe nominations for Best Motion Picture, Musical or Comedy, and Best Actor in a Musical or Comedy.

First Published: December 31, 2013: 5:09 PM ET

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$15 minimum wage supporters vow to fight on

A new $15 minimum wage for 4,700 airport workers in SeaTac, Washington, is at risk after a judge's ruling.

NEW YORK (CNNMoney)

A Washington judge ruled last week that the ballot initiative passed by voters in SeaTac doesn't apply to most workers at the community's largest employer, the Seattle-Tacoma International Airport.

That means about 4,700 employees of airlines, contractors, shops and hotels won't see their minimum wage baseline increase on Wednesday as scheduled, according to Yes!ForSeaTac and Puget Sound Sage, both proponents of the measure.

The increase will still apply to about 1,600 workers outside of the airport, Yes!ForSeaTac estimated.

In November, city voters narrowly approved an increase in the minimum wage for hospitality and transportation workers to $15. It also includes provisions for sick pay and tipped employees.

Related: The split economy

Workers are currently paid at least the statewide minimum, which increases with inflation and will be $9.32 in 2014.

Judge Andrea Darvas did not strike down the law, but rather ruled on a technical issue. The Sea-Tac airport is under jurisdiction of the Port of Seattle, and the city of SeaTac has limited influence over it, she ruled.

On Tuesday, Yes!ForSeaTac filed an appeal in the state supreme court. It wasn't immediately clear when the high court would act on the appeal.

Related: Wage battleground emerges near the nation's capital

It's the next step in what could be a long battle between unions -- including the Teamsters and SEIU -- and companies at the airport.

Bill Sherman, a professor at the Seattle University School of Law who said he is not involved with either side, expects the state supreme court to take the case rather than send it back to a lower appeals court.

Alaska Airlines, one of the airport's largest carriers, and several catering companies initially brought the issue to court. Airline spokesman Paul McElroy said Tuesday the company "believes in fair pay and benefits for all workers and we respect every worker and the job they do."

"This lawsuit is not about $15 an hour -- its about an initiative that violated state and federal law," he said.

But supporters of the higher wage argued it was an issue of equality.

"Alaska Airlines alone made $157 million in the last three months in part by outsourcing hundreds of good paying jobs" to cheaper contractors, said Sergio Salinas, president of local SEIU.

The airport and city officials haven't taken a position on the law, according to their spokesmen. Airport management is "currently reviewing the judge's decision" and the city is preparing to implement the law.

Several other minimum wage increases are taking effect in the new year. Many are minor -- about 15 cents -- but some workers will see a more sizable bump in their paychecks.

First Published: December 31, 2013: 4:46 PM ET

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More donations top $100 million

Facebook CEO Mark Zuckerberg and his wife, Priscilla Chan, made the single biggest donation of the year.

NEW YORK (CNNMoney)

A total of 15 individual donations exceeded $100 million in 2013, according to an annual tally from the Chronicle of Philanthropy, based on publicly announced gifts. That's up from 11 donations at that level in 2012.

The rebounding stock market was behind much of the newfound confidence of donors, said Stacy Palmer, the Chronicle's editor.

"People are doing well in this market and feel confident parting with this money, they're not as worried that they will regret it down the road," she said.

Facebook (FB, Fortune 500) CEO Mark Zuckerberg and his wife, Priscilla Chan, made the single biggest donation of the year. The couple gave 18 million shares of Facebook stock -- valued at more than $990 million -- to the Silicon Valley Community Foundation, which distributes donations to a wide range of other nonprofits in the area.

Related: Giving a bundle to charity? Consider a donor-advised fund

Twelve of the 15 biggest donations in 2013 were made to universities. Michael Bloomberg, now the former mayor of New York, pledged $350 million to his alma mater, Johns Hopkins University in Baltimore. Qualcomm (QCOM, Fortune 500) co-founder Irwin Jacobs pledged $133 million to New York City's Cornell Tech.

Other gifts included a $100 million pledge from David Koch to New York Presbyterian Hospital, specifically for a new ambulatory care center, and $500 million for the Oregon Health & Science University Foundation from Nike (NKE, Fortune 500) chairman Phil Knight and his wife Penelope.

Related: Top charity CEOs pay exceeds $1 million

Overall, gifts exceeding $100 million or more totaled $3.4 billion last year. That compares to $5.1 billion in 2012, though $3 billion of that came from Warren Buffett's gifts to foundations run by his three children. Without that money, the total would have been a much lower $2 billion. And this year's tally is still a far cry from the $4.1 billion donated in 2007, before the financial crisis hit.

"We're still in recovery mode," said Palmer. "[The wealthiest] aren't quite giving as generously as they were before the downturn, but it was still a very strong year."

First Published: January 1, 2014: 12:13 AM ET

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Stocks: Ready for one last record close?

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures were higher ahead of the opening bell. The Dow Jones industrial average is on track to overtake the all-time high it set Monday for what could be the 52nd record close of the year.

Over the course of December, the main U.S. stock market indexes have risen by 2% to 3%. This caps off a record-setting year that saw the Nasdaq surge nearly 40% to hit a 13-year high, while the Dow and S&P 500 both hit record highs.

Related: Fear & Greed Index, still greedy

Shares for Hertz (HTZ, Fortune 500) jumped in premarket trading after the car rental company announced measures to limit the amount of shares held by individual investors, to prevent any one investor or group from gaining control of the company.

There are a few economic data releases that could influence market sentiment in the day ahead.

The latest edition of the Case-Shiller 20-city home price index will be released at 9 a.m. ET Tuesday. At 10 a.m., the Conference Board will release its monthly consumer confidence index.

Related: Stocks: 2013 is one for the record books

European markets were inching ahead in midday trading. The exchanges in London and Paris are set for an early close, while the stock exchange in Frankfurt was closed.

Asian markets ended with mixed results and markets in Tokyo were closed. Japan's benchmark Nikkei index rounded out 2013 with its biggest annual rise in more than 40 years.

First Published: December 31, 2013: 5:26 AM ET

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