60 Biggest Business Scandals in History [2025]
Business is often celebrated as a force of progress—fueling innovation, generating wealth, and transforming societies. Yet, it also harbors the capacity for immense damage when ethical lines are crossed. The biggest business scandals in history expose not only individual acts of wrongdoing but also systemic failures across industries and geographies. These scandals, driven by greed, negligence, or the pursuit of unchecked growth, reveal the vulnerabilities that exist within corporate structures and the profound consequences when integrity is compromised.
At DigitalDefynd, we believe in the value of learning from these critical inflection points in corporate history. By studying the decisions and dynamics that led to monumental failures—be it financial fraud, regulatory evasion, or ethical breaches—we gain perspective on what it truly means to lead responsibly in today’s business environment. Each scandal is more than a cautionary tale; it is a lens into the complex interplay between governance, regulation, leadership, and accountability.
The ripple effects of these scandals are far-reaching. Companies have collapsed, executives have faced prosecution, and regulatory bodies have undergone reform. Investor confidence has been shaken, public trust eroded, and industries have been forced to rebuild their credibility. Cases like Enron, Volkswagen, and FTX have shown how quickly trust can be lost, while incidents involving firms like PwC, Santander, and British American Tobacco emphasize the ongoing challenges of maintaining compliance in an interconnected global economy.
These scandals highlight a recurring theme: the failure of checks and balances. Whether through weak oversight, toxic corporate cultures, or pressure to meet market expectations, each case offers a vital lesson in the need for transparency, ethical leadership, and robust compliance mechanisms. They also remind us that business decisions extend beyond balance sheets—they influence economies, communities, and lives.
60 Biggest Business Scandals in History [2025]
| S No | Scandal | Year | Summary |
| 1 | PwC Independence Violation | 2024 | Auditor independence violations; $3.35M fine |
| 2 | Genesis 2014 UK Money Laundering | 2023 | £30M laundering; executives jailed |
| 3 | British American Tobacco North Korea Sanctions Violation | 2023 | Sanction breaches; record non-financial settlement |
| 4 | Illumina’s Unauthorized Merger Fine | 2023 | ‚Ǩ432M fine for unapproved merger |
| 5 | Seagate’s US Export Controls Violation | 2023 | $300M fine for export control violations |
| 6 | Fluor Corp Accounting Misconduct | 2023 | $14.5M SEC fine for misleading disclosures |
| 7 | Newell Brands Sales Misrepresentation | 2023 | $12.5M fine for inflating core sales |
| 8 | Santander’s AML Failures | 2022 | ¬£107.8M fine for AML lapses |
| 9 | Exelon Corporation FCPA Violations | 2023 | $46.2M fine; political influence violations |
| 10 | Cloopen Group Accounting Fraud | 2024 | Early revenue recognition; SEC action |
| 11 | Enron | 2001 | Massive accounting fraud; led to SOX Act |
| 12 | WorldCom | 2002 | $3.8B accounting fraud; CEO sentenced |
| 13 | Volkswagen Emissions Scandal | 2015 | Emissions test cheating; billions in fines |
| 14 | Bernie Madoff’s Ponzi Scheme | 2008 | $65B Ponzi scheme; 150-year sentence |
| 15 | Tyco International | 2002 | $600M looted; CEO jailed |
| 16 | Lehman Brothers | 2008 | Largest bankruptcy; global crisis trigger |
| 17 | Satyam Computer Services | 2009 | $1.47B accounting fraud |
| 18 | Siemens AG Bribery Scandal | 2008 | $1.6B fines; international bribery |
| 19 | Theranos | 2018 | False tech claims; founder convicted |
| 20 | The Libor Scandal | 2012 | Benchmark rate manipulation |
| 21 | HealthSouth | 2003 | $1.4B accounting fraud |
| 22 | Parmalat | 2003 | €14B accounting fraud |
| 23 | Adelphia Communications | 2002 | Founders looted billions |
| 24 | FIFA Corruption Scandal | 2015 | Bribery and fraud in tournament deals |
| 25 | Wells Fargo Account Fraud | 2016 | Millions of fake accounts |
| 26 | Toshiba Accounting Scandal | 2015 | $1.2B profits overstated |
| 27 | Luckin Coffee Fraud | 2020 | $300M fake sales |
| 28 | McKinsey Opioid Crisis Involvement | 2021 | $573M settlement for role in opioid sales |
| 29 | Wirecard Fraud | 2020 | €1.9B fictitious cash |
| 30 | Odebrecht Corruption Scandal | 2016 | Latin America-wide bribery network |
| 31 | FTX Collapse | 2022 | Crypto exchange bankruptcy |
| 32 | Facebook-Cambridge Analytica | 2018 | Data misuse for political influence |
| 33 | 1MDB Scandal | 2015 | Billions embezzled from state fund |
| 34 | Equifax Data Breach | 2017 | 147M users’ data exposed |
| 35 | Arthur Andersen | 2001 | Auditor in Enron; firm dissolved |
| 36 | Xerox Accounting Scandal | 2002 | $1.9B revenue misstatement |
| 37 | Boeing 737 MAX | 2019 | Crashes due to software flaws |
| 38 | Nissan-Renault Scandal | 2018 | CEO arrested for financial misconduct |
| 39 | Lucent Technologies | 2000 | Early revenue recognition issues |
| 40 | Carillion Collapse | 2018 | Debt-laden collapse; public project disruption |
| 41 | Glencore Corruption Settlement | 2021 | $1.5B global bribery fine |
| 42 | Johnson & Johnson Opioid Crisis | 2021 | $5B part of opioid settlement |
| 43 | Barclays LIBOR Manipulation | 2012 | $450M fine for rate rigging |
| 44 | Purdue Pharma | 2020 | $8B opioid penalties |
| 45 | Danske Bank | 2018 | $230B suspicious transactions |
| 46 | Volkswagen Diesel Fraud | 2015 | Repeat entry—already captured |
| 47 | Toshiba Misreporting | 2015 | Repeat entry—already captured |
| 48 | Halliburton Bribery | 2009 | $579M FCPA fine via KBR |
| 49 | Olympus Fraud | 2011 | $1.7B losses hidden |
| 50 | MF Global Bankruptcy | 2011 | Risky bets; liquidity crisis |
| 51 | Peanut Corporation | 2009 | Salmonella outbreak; criminal convictions |
| 52 | Rajaratnam Insider Trading | 2011 | $63.8M insider trading scheme |
| 53 | Herbalife Scheme Allegations | 2016 | $200M FTC settlement |
| 54 | Autonomy Corp Fraud | 2012 | $8.8B HP write-down |
| 55 | Bear Stearns Collapse | 2008 | Subprime losses; bought by JPM |
| 56 | SNC-Lavalin | 2015 | Libyan bribery scandal |
| 57 | Wells Fargo Fake Accounts | 2016 | Repeat entry |
| 58 | LIBOR Manipulation | 2012 | Repeat entry |
| 59 | FIFA Scandal | 2015 | Repeat entry |
| 60 | BP Oil Spill | 2010 | $65B in damages and fines |
1. PwC Independence Violation (2024)
PwC faced fines from the Public Company Accounting Oversight Board (PCAOB) amounting to $3.35 million across its US and Australia branches due to failures in maintaining auditor independence. The fines were imposed after it was found that PwC personnel did not sufficiently adhere to independence requirements, particularly when exploring potential joint business relationships with audit clients. This violation highlights the ongoing challenges within auditing firms to balance lucrative consulting practices with the core auditing responsibilities that demand objectivity and independence. The case against PwC resulted in financial penalties and mandated additional professional training to fortify the firm’s commitment to upholding independence, emphasizing the imperative for robust internal controls and compliance in the auditing profession to maintain trust in the financial markets.
2. Genesis 2014 UK Money Laundering (2023)
Genesis 2014, a UK-based logistics firm, was the centerpiece of a staggering £30 million money laundering operation, resulting in the incarceration of six executives. The operation was sophisticated, utilizing the firm’s logistical networks to funnel illicit proceeds across the UK, reflecting grave lapses in regulatory oversight within the logistics and financial sectors. The case sheds light on the challenges of monitoring complex supply chains and the importance of implementing comprehensive compliance measures. It also highlights the broader implications for the logistics sector, which is increasingly exploited for such schemes. The scandal serves as a potent reminder of the need for enhanced vigilance and regulatory enforcement in detecting and preventing financial crimes in dynamic commercial environments.
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3. British American Tobacco North Korea Sanctions Violation (2023)
In a severe breach of international sanctions, British American Tobacco (BAT) was fined for masking transactions to profit from selling its products in North Korea, utilizing two sanctioned banks. This case, adjudicated by the Department of Justice and the Office of Foreign Assets Control, resulted in the largest settlement to date with a non-financial institution over sanction violations. The fine underscores the escalating enforcement of international laws designed to curb illegal trade practices and highlights the complex nature of global trade compliance. The occurrence led to substantial financial penalties and emphasized the imperative for multinational corporations to exercise stringent oversight over their international operations to comply with global regulations.
4. Illumina’s Unauthorized Merger Fine (2023)
Illumina faced a landmark fine of €432 million for merging with the cancer detection company Grail without prior approval from the European Commission, marking one of the most significant breaches of EU merger control regulations. The hefty fine represented up to 10% of Illumina’s global turnover, emphasizing the severe consequences of bypassing regulatory approval in pursuit of corporate expansions. This case is a stark reminder of the stringent regulatory landscape in the European Union designed to ensure fair competition and consumer protection. The repercussions for Illumina included financial damages and strategic setbacks, as the company was ordered to divest its interests in Grail, highlighting the critical importance of compliance with merger regulations in the global market.
5. Seagate’s US Export Controls Violation (2023)
Seagate Technology incurred a massive $300 million fine for selling millions of hard drives to Huawei, despite strict US export controls aimed at preventing such transactions. This fine, the highest ever levied by the US Commerce Department’s Bureau of Industry and Security, underscores the strict enforcement of export controls and the essential need for multinational entities to adhere to international trade regulations. The case illustrates the financial implications of non-compliance and serves as a cautionary tale about the geopolitical complexities affecting global supply chains. Seagate’s ordeal underscores the importance of due diligence and the potential repercussions that companies can face when navigating the intricate landscape of global trade amid political tensions.
6. Fluor Corp Accounting Misconduct (2023)
Fluor Corporation was fined $14.5 million by the SEC for misleading financial disclosures related to two major construction projects. This fine stems from the company’s failure to accurately report escalating costs and delays, which significantly affected its financial statements. By not including anticipated costs in project forecasts and improperly recognizing revenue from unapproved change orders, Fluor overstated its net earnings by as much as 37% over several fiscal years. This incident highlights the severe repercussions of financial misreporting and the stringent regulatory environment governing corporate financial accountability. The SEC’s action against Fluor underscores the necessity for transparent and accurate financial reporting, serving as a stark reminder to other firms in the industry about the critical importance of ethical accounting practices.
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7. Newell Brands Sales Misrepresentation (2023)
Newell Brands, the company behind familiar office supplies like Sharpie and Paper Mate, was fined $12.5 million by the SEC for inflating a key financial metric — core sales growth. This deliberate misrepresentation was designed to conceal underwhelming sales figures and project an image of robust financial health, misleading investors. The actions of Newell’s former CEO, who agreed to a personal fine of $110,000, underscored the leadership’s direct involvement in these deceptive practices. This case emphasizes the critical role of accurate financial reporting and the consequences of corporate misconduct. It serves as a vital reminder to corporations of the importance of honesty in financial communications and the severe penalties for failing to uphold these standards.
8. Santander’s AML Failures (2022)
The UK’s Financial Conduct Authority imposed a substantial fine of £107.8 million on Santander due to significant anti-money laundering system failures in its business banking division. This penalty, one of the largest for AML breaches, highlights a critical lapse in maintaining adequate controls over illicit financial flows. The investigation revealed that Santander’s AML protocols were insufficient from 2012 to 2017, during which systemic vulnerabilities allowed potentially criminal funds to permeate without adequate checks. This fine underscores the urgent need for financial institutions to fortify their internal systems against money laundering. It reflects a growing trend where regulatory bodies are intensifying scrutiny to safeguard financial systems’ integrity.
9. Exelon Corporation FCPA Violations (2023)
Exelon Corporation and its subsidiary, Commonwealth Edison (ComEd), faced charges for breaching the accounting provisions of the Foreign Corrupt Practices Act (FCPA) and committing securities fraud in attempts to sway Illinois state government officials. The charges highlight the reach of the FCPA, which extends beyond foreign corruption to include domestic political manipulation. To resolve these accusations, Exelon consented to pay a civil penalty of $46.2 million, highlighting the substantial financial and reputational hazards linked to political corruption and the critical importance of robust internal governance.
10. Cloopen Group Accounting Fraud (2024)
The SEC charged Cloopen Group Holding Limited, a China-based cloud communications company, with accounting fraud for prematurely recognizing revenue on service contracts. This case shed light on the pressures companies may face to meet sales targets and the lengths some go to manipulate financial outcomes. Despite Cloopen’s self-reporting and cooperating with the SEC’s investigation, which mitigated further penalties, the scandal serves as a warning about the importance of ethical financial practices and the consequences of failing to adhere to them).
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11. Enron (2001)
The collapse of Enron, once a titan in the energy sector, became synonymous with corporate fraud. Enron hid billions in debt from failed deals and projects through accounting loopholes and poor financial reporting. The scandal led to the company’s bankruptcy, the dissolution of Arthur Andersen (one of the world’s five largest audit and accountancy partnerships), and the loss of 85,000 jobs. It also prompted significant corporate governance and accounting standards reforms, including the Sarbanes-Oxley Act.
12. WorldCom (2002)
WorldCom, a key player in the telecommunications industry, perpetrated a $3.8 billion accounting fraud by inflating its assets. The scandal unveiled the largest bankruptcy filing in U.S. history, resulting in massive investor losses. It highlighted the need for stronger financial oversight and led to the conviction of CEO Bernard Ebbers, who was sentenced to 25 years in prison. The fallout from the scandal also led to significant reforms in corporate governance and financial reporting practices, aiming to prevent such massive frauds in the future and restore investor confidence.
13. Volkswagen Emissions Scandal (2015)
Volkswagen, the world’s largest car manufacturer, was found to have installed software in millions of diesel vehicles to manipulate emissions tests. This egregious breach of trust, known as “Dieselgate,” led to billions in fines and recalls, significantly damaging the company’s reputation and the broader automotive industry’s credibility. The scandal emphasized the importance of corporate responsibility and environmental stewardship.
14. Bernie Madoff’s Ponzi Scheme (2008)
Bernard Madoff, a former NASDAQ chairman, orchestrated the largest Ponzi scheme in history, defrauding thousands of investors of approximately $65 billion. The scandal exposed severe deficiencies in regulatory oversight and led to heightened scrutiny of financial institutions. Madoff’s actions resulted in a 150-year sentence, but the damage to his victims was irreparable. This debacle sparked a global conversation on the efficacy of regulatory frameworks and the need for more robust mechanisms to detect and prevent financial fraud, protecting investors’ interests.
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15. Tyco International (2002)
Tyco International, involved in security systems and under various leaderships, became embroiled in scandal due to extensive executive theft, including unauthorized bonuses, inflated expense accounts, and outright embezzlement. The total looted was estimated at $600 million. This scandal, resulting in jail terms for key executives, underscored the need for ethical leadership and robust internal controls. The Tyco scandal served as a wake-up call for corporations worldwide, leading to the implementation of more stringent corporate governance policies and practices to safeguard against such malfeasance.
16. Lehman Brothers (2008)
The collapse of Lehman Brothers, a global financial services firm, marked a pivotal moment in the 2008 financial crisis. Engaged in risky mortgage-backed securities, Lehman’s bankruptcy was the largest in U.S. history, leading to worldwide economic turmoil. The event prompted significant debates on financial regulation, risk management, and the moral hazards of bailouts. It also led to a reevaluation of the systemic risks posed by “too big to fail” institutions and the importance of regulatory oversight to ensure the global financial system’s stability.
17. Satyam Computer Services (2009)
India’s biggest corporate scandal involved Satyam Computer Services, where chairman Ramalinga Raju confessed to manipulating accounts by $1.47 billion. The scandal shattered the image of India’s IT sector and led to rigorous reforms in corporate governance and auditing practices within the country. Raju’s admission and the subsequent fallout is a cautionary tale about the dangers of financial misconduct.
18. Siemens AG Bribery Scandal (2008)
Siemens AG, a global powerhouse in electronics and electrical engineering, was embroiled in a massive bribery scandal, with accusations of bribing officials worldwide to secure contracts. The scandal resulted in Siemens paying a record $1.6 billion in fines to U.S. and European authorities, highlighting the international reach of corporate corruption and the need for stringent compliance programs. This case illustrated the complexities of operating across different legal and ethical landscapes and prompted multinational corporations to enhance their anti-corruption measures and strengthen their compliance with international laws.
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19. Theranos (2018)
Theranos, once a rising star in the tech and healthcare sectors, claimed to have revolutionized blood testing. However, it was revealed that the technology was fundamentally flawed, and the company’s claims were false. The scandal centered around founder Elizabeth Holmes, raised serious questions about the cult of personality in startups and the importance of due diligence in investment.
20. The Libor Scandal (2012)
The London Interbank Offered Rate (Libor), a benchmark interest rate, was found to be manipulated by several global banks, affecting trillions of dollars in loans and financial products. The scandal uncovered widespread collusion and fraud within the banking sector, leading to hefty fines for involved institutions and a push for more transparent rate-setting processes. This manipulation demonstrated the critical influence of benchmark rates on global financial markets. It underscored the systemic risks posed by unethical banking practices, prompting regulatory reforms to ensure accuracy and fairness in financial benchmarking.
21. HealthSouth (2003)
HealthSouth, a major healthcare services provider, was implicated in a massive $1.4 billion accounting fraud. Under the leadership of CEO Richard Scrushy, the company exaggerated earnings to meet stock market expectations, leading to artificially inflated stock prices. The scandal was one of the first major cases tried under the Sarbanes-Oxley Act, resulting in Scrushy’s conviction. It highlighted the critical need for accurate financial reporting and ethical corporate governance in the healthcare industry.
22. Parmalat (2003)
Italy’s Parmalat went from being a leading global dairy and food corporation to the center of one of Europe’s largest accounting frauds, involving nearly €14 billion. The scandal unfolded when it was discovered that Parmalat’s accounts were falsified to hide huge debts and non-existent assets, leading to its bankruptcy. This event decimated investors’ funds and prompted a significant overhaul of financial regulation and corporate governance standards in Europe.
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23. Adelphia Communications Corporation (2002)
Adelphia, once among the largest cable television providers, was rocked by a scandal involving the founding Rigas family, who looted the company of billions. They used company funds for personal extravagance and falsified operational metrics to boost stock prices. The scandal led to the conviction of family members and Adelphia’s bankruptcy. It underscored the dangers of unchecked executive power and the importance of corporate transparency.
24. FIFA Corruption Scandal (2015)
The International Federation of Association Football (FIFA) was embroiled in a corruption scandal involving bribery, fraud, and money laundering allegations among its highest-ranking officials. Accused of accepting bribes in exchange for awarding tournament hosting rights, the scandal tarnished the organization’s reputation and led to U.S. authorities’ indictment of several officials. This highlighted the need for integrity and transparency in sports administration.
25. Wells Fargo Account Fraud Scandal (2016)
Wells Fargo, one of the largest banks in the United States, faced backlash when it was discovered that employees had created millions of unauthorized bank and credit card accounts to meet sales targets. This widespread practice, driven by an aggressive sales culture, led to significant fines and reputational damage for the bank. The scandal emphasized the importance of ethical sales practices and customer-centric policies in the banking industry.
26. Toshiba Accounting Scandal (2015)
Toshiba, a Japanese conglomerate, admitted to overstating its profits by $1.2 billion over seven years. Senior management was implicated in deliberately misreporting financial information to meet unrealistic profit targets. This scandal highlighted significant weaknesses in corporate governance and auditing standards in Japan, leading to a comprehensive restructuring of the company and reforms in Japanese corporate governance.
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27. Luckin Coffee Fraud (2020)
Luckin Coffee, a Chinese coffee chain that was once a formidable competitor to Starbucks in China, reported fraudulent transactions totaling over $300 million. The revelation of this fabricated sales volume led to a collapse in stock prices and the company’s filing for bankruptcy. The scandal highlighted the risks associated with aggressive growth strategies and the importance of transparent financial practices, especially in rapidly growing markets.
28. McKinsey Opioid Crisis Involvement (2021)
Consulting giant McKinsey & Company came under fire for its role in aggressively boosting the sales of opioid producers, contributing to the opioid crisis in the United States. McKinsey’s consulting practices, which included advising Purdue Pharma on targeting high-volume opioid prescribers, resulted in a $573 million settlement with 47 states. This scandal underscored the ethical responsibilities of consulting firms and their impact on public health.
29. Wirecard Fraud (2020)
German payment processor and financial services company Wirecard collapsed following the revelation that €1.9 billion in cash balances on the company’s books likely did not exist. This scandal, one of the biggest in German post-war history, raised serious questions about the effectiveness of financial regulation and oversight in Germany, leading to significant scrutiny of auditing and financial practices worldwide.
30. Odebrecht Corruption Scandal (2016)
Odebrecht, a Brazilian conglomerate, was at the center of a massive corruption scandal involving billions of dollars in bribes to government officials across Latin America to secure infrastructure contracts. The scandal had widespread implications, leading to the investigation and imprisonment of numerous political and business leaders across the continent. It highlighted the pervasive corruption issue in business-government relations and the need for stringent anti-corruption measures.
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31. FTX Collapse (2022)
FTX, once a titan in the cryptocurrency exchange market, collapsed following a liquidity crisis, shaking the crypto world to its core. Allegations of misusing customer funds, risky financial practices, and a lack of transparency led to its rapid downfall. This event underscored the volatile nature of the crypto industry and the critical need for regulatory frameworks to protect investors in digital asset markets.
32. Facebook-Cambridge Analytica Data Scandal (2018)
This scandal involved the unauthorized collection of personal data of millions of Facebook users by Cambridge Analytica, a political consulting firm, to influence election outcomes. The breach raised significant concerns about privacy, data protection, and the role of social media in democracy. It led to global scrutiny, a decline in user trust, and calls for stricter data privacy regulations.
33. The 1MDB Scandal (2015)
Malaysia’s 1MDB fund was at the center of an elaborate embezzlement scheme involving billions of dollars. Funds for economic development were allegedly diverted to private pockets, including high-ranking officials and their associates. This scandal highlighted the complexities of global financial systems and the ease with which state funds can be misappropriated, sparking investigations across several countries.
34. Equifax Data Breach (2017)
In one of the largest data breaches in history, the personal information of over 147 million people was exposed due to Equifax’s failure to apply a necessary security patch. The incident raised alarms about protecting personal data and led to widespread criticism of Equifax’s handling of the breach, emphasizing the need for robust cybersecurity measures and immediate response strategies. The breach highlighted the vulnerabilities in data security infrastructures, the critical need for timely software updates, and the importance of proactive risk management to protect consumer information against emerging cyber threats.
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35. Arthur Andersen and the Enron Scandal (2001)
Although already mentioned with Enron, Arthur Andersen’s role as an auditor in the scandal merits its mention. By destroying documents related to Enron’s audit, Arthur Andersen violated the trust and integrity standards expected of auditors, leading to its downfall. This scandal marked a turning point in the accounting industry, highlighting the importance of auditor independence and ethical standards. The demise of Arthur Andersen served as a cautionary tale about the consequences of compromising professional ethics for client appeasement, reinforcing the need for rigorous oversight and accountability in the auditing profession to maintain public trust.
36. Xerox Accounting Scandal (2002)
The Xerox Corporation faced a significant scandal when it was discovered that between 1997 and 2000, the company engaged in creative accounting practices to meet or exceed Wall Street expectations. Xerox overstated its revenue by accelerating the recognition of equipment revenue and misclassifying financial transactions by approximately $1.9 billion. This manipulation not only misled investors and inflated the stock price but also called into question the reliability of financial reporting standards within the technology sector.
37. Boeing 737 MAX Safety Issues (2019)
Within five months, the crashes of two Boeing 737 MAX aircraft revealed serious flaws in the plane’s design and certification process. Investigations pointed to software issues and lapses in safety oversight. This scandal not only led to a global grounding of the fleet but also called into question the practices and integrity of one of the largest aerospace manufacturers in the world. The aftermath saw Boeing facing unprecedented scrutiny, legal actions from families of the victims, and a crisis of confidence in aviation safety standards. This event underscored the importance of transparency and rigorous safety evaluations in the aerospace industry.
38. Nissan-Renault Scandal (2018)
Carlos Ghosn, CEO of the Nissan-Renault-Mitsubishi alliance, was arrested for financial misconduct, including underreporting his income and misuse of company assets. This scandal exposed significant governance flaws within the alliance and raised questions about leadership accountability and corporate ethics in the auto industry. The fallout from the scandal led to a reshuffling of leadership within the alliance and initiated discussions on the need for stronger oversight mechanisms and ethical frameworks to govern executive conduct and financial reporting, highlighting the complexities of managing multinational corporate partnerships.
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39. Lucent Technologies Accounting Scandal (2000)
Lucent Technologies was implicated in an accounting scandal involving the premature recognition of revenue to inflate financial results. This case highlighted the pressures on companies to meet Wall Street expectations and the lengths to which they might go to appear financially healthier, emphasizing the need for accurate financial reporting and ethical business practices. The scandal led to significant financial restatements, legal battles, and a loss of investor trust, driving home the critical importance of transparency and integrity in corporate communications. It served as a cautionary tale for the tech industry, reminding stakeholders of the dangers of aggressive accounting practices.
40. Carillion Collapse (2018)
The British construction giant Carillion collapsed under the weight of its massive debts, leading to widespread job losses and disruption in public sector projects. The scandal highlighted the risks of overreliance on outsourcing to private companies for public services and raised significant questions about the oversight of corporate governance and financial health within the construction industry. The fallout from Carillion’s demise prompted a reevaluation of the procurement processes and the relationship between the public sector and its contractors, emphasizing the need for more stringent financial controls and accountability measures to protect stakeholders and ensure the delivery of critical services.
41. Glencore Corruption Settlement (2021)
Glencore, a giant in natural resource extraction, faced intense scrutiny when it agreed to pay up to $1.5 billion in a global settlement with authorities from the United States, United Kingdom, and Brazil. The allegations against Glencore involved bribery and market manipulation schemes spanning multiple countries to secure oil contracts. Investigations revealed that Glencore employed illicit practices from 2007 to 2018 to influence officials and gain preferential treatment in the oil industry. This scandal highlighted pervasive corruption within the commodities sector and prompted calls for stronger international regulatory oversight and transparency in global resource trading.
42. Johnson & Johnson Opioid Crisis Settlement (2021)
Johnson & Johnson, a renowned healthcare and pharmaceutical company, was implicated in one of the most devastating public health crises in the United States—the opioid epidemic. In 2021, the company agreed to settle opioid litigation with a landmark payment of $5 billion as part of a broader $26 billion deal involving several drug manufacturers and distributors. This settlement aimed to resolve accusations that Johnson & Johnson had contributed to the opioid crisis through aggressive marketing practices that downplayed the risks of addiction. The funds from the settlement were earmarked to support opioid treatment and prevention programs, highlighting the extensive financial and social repercussions of corporate misconduct in public health.
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43. Barclays Interest Rate Manipulation (2012)
Barclays Bank faced a severe financial scandal when British and American authorities fined it $450 million for its involvement in manipulating the London Interbank Offered Rate (Libor). Investigations disclosed that, from 2005 to 2009, Barclays traders conspired to rig the benchmark interest rates to benefit their trading positions, misleading counterparties and consumers. This misconduct led to widespread distrust in financial benchmarks, prompting a reevaluation of regulatory frameworks globally. The scandal highlighted systemic issues in the banking sector, emphasizing the need for more stringent oversight and transparency in financial markets to prevent such unethical practices.
44. Purdue Pharma Opioid Misconduct (2020)
Purdue Pharma, the maker of OxyContin, settled with the U.S. Department of Justice for over $8 billion due to its role in the opioid epidemic. This resolution marked one of the most significant penalties in pharmaceutical history, reflecting the company’s misleading marketing strategies that significantly contributed to the widespread misuse of opioid medications. The settlement included guilty pleas to three felony counts, underscoring the severe impact of corporate actions on public health. This case spotlighted the need for more rigorous ethical standards and accountability in the pharmaceutical industry to prevent misleading marketing and its catastrophic consequences.
45. Danske Bank Money Laundering Scandal (2018)
Danske Bank, Denmark’s largest bank, was embroiled in a massive money laundering scandal involving its Estonian branch, where it was reported that around $230 billion of suspicious transactions had flowed through the bank from 2007 to 2015. This revelation led to sharp criticism of Danske Bank’s inadequate internal controls and the broader regulatory environment that failed to detect such extensive misconduct. The scandal underscored the challenges in combating financial crime in an increasingly globalized banking system. It led to heightened regulatory measures across Europe to enhance financial oversight and anti-money laundering protocols.
46. Volkswagen Diesel Emissions Fraud (2015)
Volkswagen, one of the world’s leading automakers, was caught in a significant scandal when it admitted to installing software in diesel engines that manipulated emissions tests in the United States and Europe. The program allowed the cars to pass emission tests by appearing compliant, yet during regular operation, they emitted pollutants far exceeding legal limits by up to forty times. This deceit resulted in Volkswagen paying over $30 billion in fines and vehicle buybacks and significantly damaging its reputation and consumer trust. The scandal highlighted critical issues in corporate governance and environmental accountability, leading to stricter emissions testing and regulations in the automotive industry.
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47. Toshiba’s Financial Misreporting (2015)
Toshiba Corporation faced a monumental scandal after revelations of prolonged accounting irregularities surfaced, involving overstatement of profits by nearly $1.2 billion over several years. This financial misreporting, which began as early as 2008, involved top management directing a culture of compliance that prioritized profit over ethical standards and accurate reporting. The revelation triggered the departure of multiple senior leaders, including the CEO, and initiated substantial revisions to the company’s governance structures. This case is a stark reminder of the dangers of corporate cultures that undervalue transparency and accountability, urging stricter oversight and reform in corporate financial practices.
48. Halliburton Bribery Allegations (2009)
Halliburton, an American multinational corporation, was implicated in a bribery scandal involving its former subsidiary, KBR, which agreed to pay $579 million to settle charges by the U.S. Department of Justice and the Securities and Exchange Commission. Allegations claimed that KBR engaged in corrupt practices, offering bribes to Nigerian officials to win contracts worth $6 billion for building natural gas processing plants. The resolution resulted in one of the heftiest fines ever imposed under the Foreign Corrupt Practices Act. The case exposed significant lapses in corporate oversight and emphasized the need for stringent internal controls and compliance measures within international business operations to prevent corrupt practices.
49. The Olympus Accounting Fraud (2011)
Olympus Corporation, a renowned Japanese optics and reprography products manufacturer, was rocked by a scandal when it was revealed that the company had hidden losses of $1.7 billion over two decades. This elaborate fraud involved complex financial transactions designed to conceal massive investment losses dating back to the 1990s. The revelation led to the resignation and arrest of several top executives, including the chairman and the CEO. The scandal shed light on the weaknesses of corporate governance and auditing standards in Japan, prompting a nationwide discussion on the need for comprehensive corporate governance reforms to enhance transparency and protect investors.
50. MF Global Bankruptcy (2011)
MF Global, a major global financial derivatives broker, declared bankruptcy after making risky bets on European sovereign debt, resulting in a liquidity crisis and substantial losses. The collapse was notable not only because it was one of the largest Wall Street firm failures since Lehman Brothers but also because it involved the misuse of customer funds—a violation that led to intense regulatory scrutiny and public outrage. The incident underscored the dangers inherent in overly risky brokerage practices and highlighted the critical need for strong risk management and regulatory frameworks to protect the stability of the market and the interests of investors.
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51. The Peanut Corporation of America Salmonella Outbreak (2009)
The Peanut Corporation of America was implicated in a significant health crisis when it intentionally distributed salmonella-tainted products, sparking one of the broadest food recall events in the history of the United States. The outbreak affected hundreds of products and led to widespread illness nationwide. PCA’s top executives were found guilty of knowingly shipping contaminated food and fabricating laboratory results. This scandal highlighted severe deficiencies in food safety protocols and regulatory oversight, leading to strengthened food safety laws and measures to ensure the integrity of food supply chains.
52. Raj Rajaratnam Insider Trading Scandal (2011)
Raj Rajaratnam, the head of the Galleon Group, was found guilty of orchestrating one of the most substantial insider trading operations ever uncovered in the United States. The investigation revealed that Rajaratnam had exploited confidential information from corporate insiders to make illicit profits totaling approximately $63.8 million. His high-profile conviction marked a significant victory for prosecutors in enforcing securities laws and combating insider trading on Wall Street. This case underscored the need for stricter enforcement of securities regulations and the ongoing challenges of policing insider trading in dynamic financial markets.
53. Herbalife Pyramid Scheme Allegations (2016)
Herbalife, a global nutrition company, faced serious allegations of operating as a pyramid scheme from the U.S. Federal Trade Commission (FTC). After a comprehensive investigation, Herbalife agreed to a $200 million settlement and was required to restructure its business practices. The FTC’s findings highlighted that Herbalife’s earnings were predominantly derived from recruiting new distributors rather than selling products, a hallmark of a pyramid scheme. This settlement forced Herbalife to fundamentally change how it compensated its distributors, emphasizing retail sales over recruitment. The scandal cast a long shadow over the multi-level marketing industry, prompting calls for clearer regulations to protect participants from deceptive business models.
54. Autonomy Corporation Financial Misrepresentation (2012)
Autonomy Corporation, a UK-based software company, was accused by Hewlett-Packard (HP) of massive financial misrepresentation leading to a $8.8 billion write-down after its acquisition by HP. Investigations revealed that Autonomy had engaged in serious accounting improprieties and misleading financial reporting to inflate its sales and market value before the acquisition. This scandal led to numerous legal battles and highlighted the challenges in due diligence and the potential for fraud in high-profile tech acquisitions. It underscored the importance of rigorous financial auditing and transparency in corporate transactions to prevent such deceptive practices.
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55. Bear Stearns Collapse (2008)
Bear Stearns, an investment bank and global financial services firm, dramatically collapsed in 2008, marking one of the early signs of the global financial crisis. Mismanagement of risky mortgage-backed securities and overexposure to subprime loans led to a liquidity crisis when the market for these assets suddenly dried up. The Federal Reserve facilitated a fire-sale takeover by JPMorgan Chase to prevent a wider economic fallout. This event highlighted the risks associated with high-leverage financial practices and the need for more stringent risk assessments and regulatory oversight in financial markets to avoid similar disasters.
56. SNC-Lavalin Bribery Scandal (2015)
SNC-Lavalin, a Canadian engineering giant, was embroiled in a bribery scandal involving payments of millions of dollars to secure government contracts in Libya. This misconduct led to significant legal repercussions and public outcry, emphasizing the need for ethical business practices and compliance with international anti-corruption laws. The scandal damaged the company’s reputation and led to a wider inquiry into corruption in international business dealings, resulting in stricter compliance requirements for Canadian companies operating abroad and a renewed focus on corporate ethics and governance.
57. The Wells Fargo Unauthorized Accounts Scandal (2016)
Wells Fargo incurred fines amounting to several hundred million dollars following revelations that its employees had set up countless unauthorized accounts under customers’ names without their approval. This widespread practice was driven by an aggressive sales culture and unrealistic sales targets set by management, which led to widespread consumer fraud and violation of trust. The scandal resulted in the resignation of the CEO and several senior managers, the restructuring of the bank’s sales practices, and a significant blow to its public image. This case is a stark reminder of the consequences of unethical corporate behavior and the importance of maintaining customer trust and integrity in banking operations.
58. The LIBOR Manipulation Scandal (2012)
The London Interbank Offered Rate (LIBOR), a critical global benchmark for short-term interest rates, was the center of a massive manipulation scandal involving several leading banks. Investigations revealed that traders from various banks, including Barclays, UBS, and Royal Bank of Scotland, conspired to influence the LIBOR to benefit their trading positions. The scandal highlighted the vulnerabilities in overseeing critical financial benchmarks and led to fines exceeding $9 billion imposed on the involved institutions. It prompted significant reforms in managing financial benchmarks, aiming to restore trust and integrity in the financial system.
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59. The FIFA Corruption Scandal (2015)
The International Federation of Association Football (FIFA) faced one of the most extensive corruption scandals in sports history, involving high-ranking officials and executives. Allegations included bribery, fraud, and money laundering linked to winning World Cup hosting rights and broadcasting contracts. The U.S. Department of Justice indicted several FIFA officials, leading to arrests and widespread organizational reforms. The scandal exposed the deep-seated corruption within the organization and prompted calls for greater transparency and governance reforms in international sports administrations.
60. The BP Oil Spill (2010)
British Petroleum dealt with a monumental ecological catastrophe when the Deepwater Horizon oil rig spilled into the Gulf of Mexico millions of barrels of oil. The spill resulted from a blowout that caused a massive explosion, killing 11 workers and releasing approximately 4.9 million barrels of oil into the ocean over several months. BP was found to have ignored critical safety protocols, contributing to the catastrophe. The incident led to BP incurring more than $65 billion in penalties, remediation expenses, and settlements. This scandal underscored the importance of stringent environmental safety standards and corporate responsibility in managing environmental risks.
Conclusion
The biggest business scandals throughout history serve as stark reminders of the fragile line between ambition and integrity. While innovation and growth are central to business success, these cases reveal what happens when those pursuits are detached from ethical responsibility. From financial fraud and regulatory evasion to environmental negligence and corporate misconduct, the scandals explored in this article illustrate the devastating impact of unchecked power and compromised values.
Each incident has left a lasting mark—on industries, economies, and the lives of countless individuals. Yet, they have also sparked vital reforms, catalyzed regulatory evolution, and deepened public awareness of corporate accountability. These outcomes highlight an important truth: scandals, while damaging, can also be transformative.
As global markets become more interconnected and complex, the importance of ethical governance, transparency, and accountability cannot be overstated. Businesses must proactively foster cultures of compliance, leadership must uphold integrity as a core value, and regulatory systems must evolve to meet modern risks. Only by internalizing the lessons from these historic failures can future scandals be prevented.
Ultimately, these stories are not just about what went wrong—they are about what must go right. For business leaders, professionals, and institutions alike, they offer a blueprint for building trust, resilience, and sustainable success in an increasingly scrutinized world.
