Thomson Reuters faces shareholder vote on contracts with the US government

Thomson Reuters Corporation

Thomson Reuters Corporation

TRI

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From Ross Kerber

- Thomson Reuters, the content and technology company, faces a shareholder vote at its annual meeting on Wednesday regarding its contracts with the U.S. government to provide services that some investors and employees believe could contribute to the Trump administration's campaign against illegal immigrants.

The draft resolution, submitted by a government workers' union in British Columbia, seeks to review the human rights implications of those contracts with U.S. agencies, including Immigration and Customs Enforcement.

Among the offerings of Toronto-based Thomson Reuters are products and services sold to law enforcement agencies. For example, the government spending data website USAspending.gov shows a $22.8 million contract, set to expire in May, with the Department of Homeland Security, which partly supplied Immigration and Customs Enforcement with license plate reader data.

Other contracts in effect with the Department of Homeland Security, according to the same website, include a contract worth up to $4.6 million through 2028 for "risk mitigation services" and another contract worth about $3.6 million through 2027 for a "marine analysis tool".

The federal spending website stated that the contracts went to Thomson Reuters Special Services (TRSS), a Thomson Reuters subsidiary based in McLean, Virginia. According to its website, the unit's products aim to prevent financial crimes, identify the nature of foreign influence, and help law enforcement and national security officials understand fragmented data.

A Thomson Reuters spokesman declined to discuss specific contract details but said the company takes the legality and legitimacy of its products very seriously.

The spokesperson added, "They are provided under strict contractual terms, are subject to applicable laws, and are governed by strong safeguards that impose restrictions and controls on how our products and services are used. We are confident in these controls... and when any potential misuse is identified, we act immediately and decisively, including suspending and/or blocking access (to them) when warranted."

Reuters, the company's news agency, is independent and operates separately from the other divisions of Thomson Reuters' business.

The draft resolution states that Thomson Reuters products and data are "an integral part of ICE's ability to track, detain, and execute the largest deportation operation in U.S. history."

A Thomson Reuters spokesperson said, "We completely disagree with this claim. These allegations are baseless."

Thomson Reuters opposes the proposal, stating that it already conducts human rights assessments to ensure its operations comply with UN standards. In a regulatory filing, the company said its products assist authorities in investigating national security and public safety issues, including child exploitation, human trafficking, drug and arms trafficking, and financial crimes.

The proposal is backed by a group of Thomson Reuters employees calling themselves the "Committee to Restore Trust." In April, Billie Little, an Oregon resident who worked for Thomson Reuters in legal publishing, filed a lawsuit alleging wrongful termination.

In her complaint, which is still pending in U.S. District Court in Portland, Oregon, Little claimed she was fired for asking questions about the company's work with immigration authorities, and described herself as the head of a "trust restoration committee."

A Thomson Reuters spokesperson commented on Little's lawsuit, saying, "We strongly reject these allegations and intend to vigorously defend our case. We take employee concerns seriously and provide clear channels for our colleagues to raise issues, as outlined in our Code of Conduct."

Institutional Shareholder Services and Glass Lewis, two of the largest voting advisors to shareholders, recommended voting against the resolution on Wednesday. Institutional Shareholder Services said it was unclear whether the additional disclosure would "provide any additional benefit to shareholders."