Adobe Inc. (NASDAQ:ADBE) shares nudged higher during Monday’s premarket session as traders digest fresh regulatory headlines around the company’s subscription and cancellation practices. The stock had slid 7.6% on Friday.

Details

On Friday, the Justice Department said it filed a proposed stipulated order that, if entered by the court, would resolve a case against Adobe and two employees, Maninder Sawhney and David Wadhwani.

The case is tied to alleged violations of the Restore Online Shoppers’ Confidence Act (ROSCA).

The proposed order requires Adobe to pay $75 million in civil penalties and provide customers $75 million in free services, for a total package valued at $150 million.

In the complaint filed in the U.S. District Court for the Northern District of California, the government alleged Adobe used fine print and inconspicuous hyperlinks to hide key subscription details, including an Early Termination Fee, and then made cancellations difficult through “convoluted and inefficient” steps, delays, and repeated offers and warnings.

The order also requires clearer disclosure of any Early Termination Fee and its calculation before enrollment, plus reminders for any free trial lasting longer than seven days before converting to a paid plan that includes an Early Termination Fee.

Earnings Snapshot

On Thursday, Adobe reported fiscal first-quarter revenue of $6.40 billion and adjusted EPS of $6.06, topping ...