Adobe settles subscription lawsuit for $75 million
Adobe just agreed to pay $75 million (and offer another $75 million in free services) to settle a US government lawsuit over hidden fees and hard-to-cancel subscriptions.
The Justice Department and the FTC said Adobe's "annual paid monthly" plan wasn't upfront about extra charges, which goes against laws meant to protect online shoppers.
Adobe hasn't admitted fault, but says it's made its cancelation process clearer.
CEO Narayen to step down
This settlement lands right as longtime CEO Shantanu Narayen said he will step down after more than 18 years, with investors worried about how AI could shake up the company's future (and its stock price).
Since nearly all of Adobe's revenue comes from subscriptions, this legal drama is a big deal as it tries to keep customers happy and adapt to new tech trends.