A recent study by vpnMentor has shed light on how corporate scandals have impacted businesses over the past 25 years. The analysis tracked 58 companies involved in significant scandals, revealing which firms failed and which managed to adapt and thrive.
Among the companies that collapsed due to scandals are well-known names like Lehman Brothers, Cambridge Analytica, FTX, Sino-Forest, and Nikola Corporation. Lehman Brothers’ bankruptcy in 2008 remains the largest in U.S. history, largely due to its risky investments in mortgage-backed securities. Cambridge Analytica shut down after it was exposed for improperly collecting Facebook user data, while FTX filed for bankruptcy amid serious accusations of misusing customer funds. Other firms, such as Wirecard and Financial Advisory Consultants, also ceased operations due to fraud allegations.
On the other hand, the study found that 41 companies continued to operate despite facing scandals. Boeing, for instance, took steps to address the fallout from the 737 Max crashes. Epic Games settled issues related to children’s privacy, and General Motors paid penalties for vehicle defects yet maintained its market presence. Interestingly, some companies like Johnson & Johnson, Herbalife, and Monsanto saw their stock prices rise after their scandals, indicating they managed to recover effectively.
The analysis also highlighted that some businesses faced little disruption from allegations. PayPal’s Honey extension and Google’s AdSense program, while criticized, did not suffer significant financial impacts.
The findings come at a time when businesses are increasingly worried about operational risks. The Allianz Commercial Risk Barometer for 2025 identified cyber incidents as the top business risk for the fourth year in a row. A survey of nearly 3,800 executives from 106 countries showed that 38% of them ranked cyber risks, such as data breaches and ransomware attacks, as their biggest concern.
Following cyber risks, business interruptions, often caused by cyberattacks, natural disasters, and supply chain issues, were the second most pressing concern. The report noted significant events like the collapse of the Francis Scott Key Bridge and disruptions in shipping lanes as examples of these interruptions. Natural catastrophes ranked third, reflecting ongoing extreme weather events that have led to insured losses exceeding $100 billion. Regulatory changes and rising compliance costs came in fourth, underscoring the challenges businesses face with privacy laws and cybersecurity requirements.
This study serves as a reminder of the ever-evolving landscape of corporate risk and the importance of resilience in the face of challenges.