Yahoo Autos Rep. Alexandria Ocasio-Cortez asked the SEC to investigate secretive data firm Palantir before it hit the stock exchange
Rep. Alexandria Ocasio-Cortez wrote a letter to the Securities and Exchange Commission asking for the agency to investigate the data-mining company Palantir ahead of its stock-market debut, which it made on Wednesday.
Among the congresswoman's concerns is Palantir's longtime penchant for secrecy, which she wrote could hurt future investors.
Other concerns listed are its domestic and foreign contracts, including with Immigration and Customs Enforcement, law-enforcement agencies, and foreign governments that "may present human rights risks."
Palantir, a famed Silicon Valley startup founded in 2003, has a reputation for being secretive and has come under scrutiny recently ahead of its direct listing.
Rep. Alexandria Ocasio-Cortez wrote a letter to the US Securities and Exchange Commission in mid-September asking the agency to investigate the secretive data firm Palantir as the company gained attention with its stock-exchange plans.
In the letter, the congresswoman listed several concerns pertaining to the Peter Thiel-founded Silicon Valley startup. But her primary grievance was the startup's failure to fully disclose information regarding its business practices, omissions that could lead to material risks for future investors and national security issues as it begins trading, the letter said.
According to Ocasio-Cortez, one such partial omission was the funding it received from In-Q-Tel, the CIA's venture-capital arm. A 2009 shareholder report from Palantir revealed that In-Q-Tel held a 10% share in Palantir, but the firm's 2020 S-1 filing did not say whether that investment was still in play or how many Palantir shares In-Q-Tel held. Palantir is listed as one of In-Q-Tel's portfolio companies on the venture group's website.
Palantir's contracts with foreign governments were also cited, some of which involve governments "known to engage in corrupt practices and human rights violations," such as Qatar, Ocasio-Cortez wrote in the letter.
Palantir's domestic contracts have also drawn criticism. Its contract with US Immigration and Customs Enforcement came under scrutiny from 15 members of the Congressional Hispanic Caucus, who questioned whether Palantir was sharing people's health data with ICE. Data privacy was another concern in Ocasio-Cortez's letter to the SEC.
