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Tag: lawsuits and claims

  • Supreme Court rejects Texas and Louisiana challenge to Biden deportation priorities | CNN Politics

    Supreme Court rejects Texas and Louisiana challenge to Biden deportation priorities | CNN Politics

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    CNN
     — 

    The Supreme Court, in an 8-1 ruling on Friday, revived the Biden administration’s immigration guidelines that prioritize which noncitizens to deport, dismissing a challenge from two Republican state attorneys general who argued the policies conflicted with immigration law.

    The court said the states, Texas and Louisiana, did not have the “standing,” or the legal right, to sue in the first place in a decision that will further clarify when a state can challenge a federal policy in court going forward.

    The ruling is a major victory for President Joe Biden and the White House, who have consistently argued the need to prioritize who they detain and deport given limited resources. By ruling against the states, the court tightened the rules concerning when states may challenge federal policies with which they disagree. The Biden administration policy was put on pause by a federal judge nearly two years ago and the Supreme Court declined to lift that hold last year.

    Justice Brett Kavanaugh wrote Friday’s majority opinion in the case.

    “In sum, the states have brought an extraordinarily unusual lawsuit,” Kavanaugh wrote, in an opinion joined by Chief Justice John Roberts, and Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson. “They want a federal court to order the Executive Branch to alter its arrest policies so as to make more arrests. Federal courts have not traditionally entertained that kind of lawsuit; indeed, the States cite no precedent for a lawsuit like this.”

    Kavanaugh said that the executive branch has traditional discretion over whether to take enforcement actions under federal law. He said that if the court were to allow the states to bring the lawsuit at hand, it would “entail expansive judicial direction” of the executive’s arrest policy and would open the door to more lawsuits from states that think the executive is not doing enough to enforce the law in other areas such as drug and gun regulation and obstruction of justice laws.

    “We decline to start the Federal Judiciary down that uncharted path,” Kavanaugh said.

    Homeland Security Secretary Alejandro Mayorkas said the administration welcomes the court’s ruling and that his department looks forward to using the immigration guidelines.

    The guidelines “enable DHS to most effectively accomplish its law enforcement mission with the authorities and resources provided by Congress,” Mayorkas said.

    Justice Neil Gorsuch, joined by Justices Clarence Thomas and Amy Coney Barrett, wrote a concurring an opinion that concluded that the states also lacked standing, but for different reasons than the majority opinion. Justice Samuel Alito dissented.

    At the heart of the dispute was a September 2021 memo from Mayorkas that laid out priorities for the apprehension and removal of certain non-citizens, reversing efforts by former President Donald Trump to increase deportations.

    In his memo, Mayorkas stated that there are approximately 11 million undocumented or otherwise removable non-citizens in the country and that the United States does not have the ability to apprehend and seek to remove all of them. As such, the Department of Homeland Security sought to prioritize those who pose a threat to national security, public safety and border security.  

    Kavanaugh’s opinion stressed that the standing doctrine “helps safeguard the Judiciary’s proper – and properly limited – role in our constitutional system.” He said that by ensuring a party has standing to sue, “federal courts prevent the judicial process from being used to usurp the powers of the political branches.”

    The majority did not address the underlying question of whether the administration had the authority to implement the policy.

    “We take no position on whether the executive branch here is complying with its legal obligations under §1226(c) and §1231(a)(2),” Kavanaugh wrote, referring to the relevant immigration statutes. “We hold only that the federal courts are not the proper forum to resolve this dispute.”

    Kavanaugh pointed out that five presidential administrations have determined that resource constraints necessitated prioritization in making immigration arrests.

    In his sole dissent, Alito wrote that this “sweeping executive power endorsed by today’s decision may at first be warmly received by champions of a strong Presidential power, but if presidents can expand their powers as far as they can manage in a test of strength with Congress, presumably Congress can cut executive power as much as it can manage by wielding the formidable weapons at its disposal.”

    “That is not what the Constitution envisions,” he wrote.

    Steve Vladeck, a CNN Supreme Court analyst who filed an amicus brief in the immigration case, noted that Friday’s ruling was the second decision within the last week in which the court “held that red states lacked standing to challenge a federal policy – perhaps a signal of dissatisfaction with how liberally lower courts, especially the Fifth Circuit, have permitted these challenges to go forward.”

    “And it’s the second in the last two years in which it has reversed a nationwide injunction against a Biden immigration policy in a suit brought by Texas,” Vladeck said. “When states are the right plaintiffs to challenge federal policies is also one of the central issues before the court in the challenges to Biden’s student loan program – in which the court is expected to rule next week.”

    Kavanaugh’s opinion emphasized that, in “holding that Texas and Louisiana lack standing, we do not suggest that federal courts may never entertain cases involving the executive branch’s alleged failure to make more arrests or bring more prosecutions.”

    In court, US Solicitor General Elizabeth Prelogar stressed that Congress has never provided the funds to detain everyone, prompting different administrations to consider how to prioritize limited funds. She noted that the executive branch retains the authority to focus its “limited resources” on non-citizens who are higher priorities for removal and warned that if the states were to prevail, it would “scramble” immigration enforcement on the ground, leading to a totally unmanageable landscape. She said the states’ view in the case was a “senseless” way to run an immigration system.

    “I think that that is bad for the executive branch. I think it’s bad for the American public and I think it’s bad for Article Three courts,” she said.  

    The guidelines call for an assessment of the “totality of the facts and circumstances” instead of the development of a bright-line rule. The government lists aggravating factors weighing in favor of an enforcement action, including the gravity of the offense and the use of a firearm, but it also lists mitigating factors that include the age of the immigrant. 

    Texas Solicitor General Judd Stone, representing Texas and Louisiana, argued that the administration lacked the authority to issue the memo because it conflicts with existing federal law. He accused the government of treating immigration law in the area as “discretionary” and not “mandatory” and argued that the executive branch lacks the authority to “disregard” Congress’ instruction.

    “The states prove their standing at trial based on harms well recognized,” Stone said, emphasizing the costs incurred when the government “violates federal law.”

    A district court judge blocked the guidelines nationwide. “Using the words ‘discretion’ and ‘prioritization’ the executive branch claims the authority to suspend statutory mandates,” ruled Judge Drew Tipton, a Trump appointee on the US District Court for the Southern District of Texas. “The law does not sanction this approach.” 

    A federal appeals court declined to issue a stay of the decision, prompting the Biden administration to ask the Supreme Court for emergency relief last July. A 5-4 court ruled against the administration, allowing the lower court’s decision to remain in effect while the legal challenge played out.

    Conservative Justice Amy Coney Barrett joined her three liberal colleagues in dissent without providing any explanation for her vote.  

    This story has been updated with additional details.

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  • Jim Brown Fast Facts | CNN

    Jim Brown Fast Facts | CNN

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    CNN
     — 

    Here’s a look at the life of activist, actor and Pro Football Hall of Fame running back Jim Brown. He played his entire career with the Cleveland Browns.

    Birth date: February 17, 1936

    Birth place: St. Simons Island, Georgia

    Birth name: James Nathaniel Brown

    Father: Swinton Brown, a professional boxer

    Mother: Theresa Brown, a housekeeper

    Marriages: Monique Gunthrop (1997-present); Sue Jones (1958-1972, divorced)

    Children: with Monique Gunthrop: Aris and Morgan; with Sue Jones: Kim, Kevin (twins) and James Jr.; with Kim Jones: Kimberly; with Brenda Ayres: Shellee; mother’s name unavailable publicly: Karen Brown Ward

    Education: Syracuse University, B.A., 1957

    At Syracuse, Brown played football, lacrosse, basketball and ran track.

    Qualified for the 1956 Olympics as a decathlete, but did not compete in order to focus on football.

    Inducted into the the Pro Football Hall of Fame in 1971, the College Football Hall of Fame in 1995 and National Lacrosse Hall of Fame in 1983.

    Led the NFL in rushing eight out of his nine seasons.

    Played in nine straight Pro Bowls, for the 1957-1965 seasons.

    NFL’s MVP in 1957, 1958 and 1965.

    Starred in movies such as “The Dirty Dozen,” “Ice Station Zebra” and “100 Rifles.”

    1957 – First round draft pick, sixth player overall, by the Cleveland Browns. Later named Rookie of the Year and also Most Valuable Player.

    1960s – Founds the Negro Industrial and Economic Union (later renamed the Black Economic Union) to support black entrepreneurship.

    1964 – “Off My Chest,” Brown’s autobiography, with Myron Cope, is published.

    1964 – Film debut in “Rio Conchos.”

    December 27, 1964 – The Cleveland Browns defeat the Baltimore Colts 27-0 in the NFL Championship Game. (The Super Bowl replaced the NFL Championship Game in 1967).

    July 24, 1965 – A jury finds Brown not guilty of assault and battery against 18-year-old Brenda Ayres, after an incident in his hotel room.

    July 14, 1966 – After nine seasons and 118 games, retires from professional football at the age of 30.

    1968 – Brown is charged with assault with intent to commit murder after model Eva Bohn-Chin is found beneath the balcony of Brown’s second floor apartment. The charge is later dismissed after Bohn-Chin refuses to name him as her assailant. Brown also pays a $300 fine for striking a deputy sheriff during the same incident.

    1969 – Stars in “100 Rifles” with Raquel Welch. It is one of the first major studio films to feature an interracial love scene.

    February 5, 1970 – A jury finds Brown not guilty of assault and battery charges, stemming from a traffic accident in 1969.

    1971 – Is inducted into the Pro Football Hall of Fame, in his first year of eligibility.

    1978 – Is sentenced to one day in jail for beating and choking his golfing partner, Frank Snow. Brown is also fined $500 and receives two years’ probation.

    1985 – Brown is charged with raping and assaulting a 33-year-old woman in his home. The judge later dismisses the charges based on inconsistent testimony.

    August 1986 – Brown is arrested for assaulting live-in girlfriend Debra Clark. The charges are later dropped after Clark refuses to prosecute.

    1988 – Founds the Amer-I-Can program, an organization dedicated to stopping gang violence and helping individuals “take charge of their lives and achieve their full potential.”

    1989 – Brown’s memoir, with Steve Delsohn, “Out of Bounds,” is published.

    June 15, 1999 – Following a domestic disturbance with his wife Monique Gunthrop Brown, Brown is arrested and charged with making terrorist threats toward his wife. In the 911 tape, Monique Brown accuses Brown of threatening to kill her, a claim she later recants.

    September 10, 1999 – A jury finds Brown guilty of vandalism for smashing his wife’s car with a shovel during the June incident. He is later fined $1,800 and sentenced to three years’ probation, one year of domestic violence counseling and 400 hours community service or 40 hours on a work crew.

    January 5, 2000 – Brown is sentenced to six months in jail for refusing the court-ordered counseling and community service hours handed down in 1999. He serves almost four months in the Ventura County jail in 2002.

    2002 – Spike Lee’s documentary, “Jim Brown: All American,” is released.

    2005-2010 – Executive adviser to the Cleveland Browns.

    2008 – Files a lawsuit against Electronic Arts, alleging that the video game company used his likeness in the Madden NFL video games without his consent.

    2009 – A federal judge dismisses Brown’s 2008 lawsuit against Electronic Arts. An appeals court upholds the ruling in 2013.

    May 29, 2013 – Is named special adviser to the Cleveland Browns.

    July 2014 – Files a lawsuit against sports memorabilia dealer Lelands, alleging that the online auction dealer was selling Brown’s stolen 1964 championship ring. Lelands countersues Brown in August 2014.

    October 2015 – The lawsuit is settled, and Brown’s ring is returned.

    September 18, 2016 – A bronze statue of Brown is unveiled outside FirstEnergy Stadium, home of the Cleveland Browns. It is the first statue outside the stadium to honor a former player.

    October 11, 2018 – Along with Kanye West, Brown meets with President Donald Trump in the Oval Office.

    November 22, 2019 – Brown is announced as one of the 100 greatest players in NFL history as part of the NFL 100 All-Time Team.

    January 13, 2020 – ESPN names Brown the number one greatest player in college football’s 150 year history.

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  • New York City plans to temporarily house migrants in hotels in other counties. Two counties are suing to stop it | CNN

    New York City plans to temporarily house migrants in hotels in other counties. Two counties are suing to stop it | CNN

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    CNN
     — 

    Following New York City Mayor Eric Adams’ announcement last week that the city will bus some migrants to hotels in nearby counties temporarily, officials in Orange County and Rockland counties filed lawsuits attempting to stop the plan – even as some migrants have already arrived.

    The counties have also issued executive orders barring the arrival of migrants and asylum seekers.

    Filed in state court in Orange County, one of the lawsuits obtained by CNN alleges that the city’s plan exceeds its authority, violates a county executive order and bypasses shelter licensing requirements. It asks the court to issue a preliminary injunction blocking the city’s plan while the proceeding is pending.

    Orange County officials “oppose the City Respondents’ illegal and misguided attempts to manage their burdens and assumed responsibilities within their borders by offloading them onto the County, which is already overburdened with responsibilities to its own citizens, with no planning whatsoever,” according to the lawsuit.

    Adams had said the new program intends to provide up to four months of temporary shelter for adult men seeking asylum who are already in the city’s care while they try to secure work permits.

    Days after Adams announced plans for Orange and Rockland counties, Orange County Executive Steven Neuhaus issued an executive order stating the migrants would not be permitted to stay in hotels there.

    Rockland County filed its own lawsuit on Tuesday night. The suit, filed in Rockland County Supreme Court, alleges Mayor Adams’ plan to bus migrants to a hotel in the exceeds the city’s legal authority.

    On Friday, a judge granted a temporary restraining order against the Adam’s plan, blocking the city from transporting migrants to a hotel in Rockland County. The city has said it plans to appeal the restraining order. A court hearing is scheduled for May 30 to determine if the order will be extended.

    The New York Civil Liberties Union filed a federal lawsuit on Thursday against Orange and Rockland counties for blocking the arrival of asylum seekers from New York City, according to court documents.

    In issuing orders “expressly seek[ing] to ‘bar migrants’ and ‘asylum seekers’ from coming to the counties from New York City and that further seek to bar local hotels from making their rooms available to migrants for any period of time,” the counties violated due process and equal protection clauses under the US Constitution, the lawsuit says.

    When reached by CNN for comment Thursday, Neuhaus said, “We have not been served with any lawsuit.” CNN on Saturday reached out to Rockland and Orange county officials for further comment on the NYCLU’s lawsuit.

    Rockland County officials said in a statement that while they don’t typically comment on pending litigation, they “feel strongly that what [they] are doing is right and legal as witnessed by the court’s Temporary Restraining Order granted Thursday.”

    The Orange County complaint details multiple examples of the city’s alleged “subterfuge.”

    Orange County authorities believed the city planned to move 60 people to one hotel in the county, according to the lawsuit, but then later learned the city planned to send more than 600 individuals to two hotels. The county claims this would more than double its homeless population, which was about 437 last month, according to the lawsuit.

    After the county issued its executive order, officials were “expressly assured” by the city that buses would not be sent for the time being, according to the lawsuit.

    “Nonetheless, and despite these assurances, busses showed up at the hotel on May 11, 2023, with no notice, and unloaded homeless men pursuant to the City’s illegal Proposed Transfer plan,” the lawsuit says.

    On Wednesday, a spokesperson for Mayor Adams’ office said that the city was “discussing legal and safety concerns with our state partners,” adding that while the city temporarily paused busing migrants to locations outside of New York City, their “plans have not changed.” A spokesperson for Mayor Adams’ office said Thursday that Neuhaus’ statement about alleged assurances that no asylum seekers from the city would arrive in Orange County is inaccurate.

    “New York City has cared for more than 65,000 migrants – sheltering, feeding, and caring for them, and we have done so largely without incident,” spokesperson Fabien Levy said in a statement on Friday.

    “We need the federal government to step up, but until they do, we need other elected officials around the state and country to do their part. Right now, we’re asking Orange County to manage less than ¼ of 1% of the asylum seekers who have come to New York City, with New York paying for shelter, food, and services. We are reviewing our legal options.”

    Orange County also filed a separate complaint Friday against the two hotels within the county planning to house migrants from New York City. The complaint seeks to block the hotels from accepting asylum seekers and “converting” into homeless shelters, alleging it violates the county’s executive order.

    The town of Newburgh, which is located in Orange County, also filed a complaint against one of the hotels. The lawsuit claims that housing the migrants is not permitted under the building’s certificate of occupancy and would violate the town’s municipal and building construction codes.

    “The Mayor’s program did not consider or address the local zoning, building, or fire codes governing the proposed or ‘selected’ housing sites,” the complaint says.

    After Orange County issued its executive order, Newburgh inspectors visited the hotel and noticed “the alterations of beds, insertion of additional bedding, and the alteration of room accommodations,” the lawsuit says. The next day, the hotel received two busloads of people from the city, according to the complaint.

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  • McDonald’s found liable after child suffers burns from ‘hot’ chicken nuggets, Florida jury finds | CNN Business

    McDonald’s found liable after child suffers burns from ‘hot’ chicken nuggets, Florida jury finds | CNN Business

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    New York
    CNN
     — 

    A South Florida jury returned a split verdict in a civil lawsuit filed against McDonald’s and one of its franchisees that alleged “dangerously hot” chicken nuggets from a Happy Meal burned a toddler, according to CNN affiliate WPLG.

    The jury on Thursday found that McDonald’s and franchise owner Upchurch Foods liable for failing to properly warn or provide reasonable instructions on the possible harm from the hot McNuggets dispensed at a Tamarac, Florida, drive-thru, the news station reported. However, only Upchurch Foods was found to be negligent. Jurors also found there was no inherent defect in putting McNuggets on the market and no breach of implied warranty.

    The suit was filed in 2019 against McDonald’s and Upchurch Foods. The Fort Lauderdale jury said both were at some fault for the burns sustained by Philana Holmes and Humberto Caraballo Estevez’s daughter when the hot nuggets fell on to her lap, WPLG reported.

    The complaint said Holmes bought and paid for the Happy Meal from the drive-thru and then drove away. The nugget fell and became lodged between her 4-year-old daughter’s leg and car seat, the law firm representing the plaintiffs said.

    “The Chicken McNuggets inside of that Happy Meal were unreasonably and dangerously hot (in terms of temperature),” and caused her “skin and flesh around her thighs to burn,” the complaint alleged, leaving her “disfigured and scarred.”

    The complaint said the franchise should have known the nuggets were “unfit for human handling,” had a duty not to sell them, and it should have adequately trained and supervised its employees.

    The law firm representing the plaintiff, Fischer Redavid, said in a blog post that the case will go to a second trial to “determine the damages owed to our client.”

    The case echoes the infamous McDonald’s hot coffee lawsuit of the ’90s, in which a woman spilled coffee on her lap and suffered third-degree burns. A jury agreed with her contention that the coffee was unreasonably hot. Fischer Redavid noted that the plaintiff in that case was initially awarded nearly $3 million, but she settled for less after an appeal.

    “This is not the infamous Hot Coffee case; this is Olivia’s case,” the law firm said in a statement to WPLG. “She’s an adorable, innocent child who was severely burned through no fault of her own.”

    In a statement, McDonald’s called it an “unfortunate incident” but that they “respectfully disagree with the verdict.” McDonald’s defense said it had no control over the injuries and damages.

    “Our sympathies go out to this family for what occurred in this unfortunate incident, as we hold customer safety as one of our highest priorities,” local McDonald’s owner and operator, Brent Upchurch, said in a statement. “That’s why our restaurant follows strict rules in accordance with food safety best practices when it comes to cooking and serving our menu items, including Chicken McNuggets.”

    Upchurch said the Tamarac location “did indeed follow” safety protocols.

    Fischer Redavid’s statement said the verdict “reflected the truth, the facts, and the law.”

    “We don’t view this as a ‘split verdict.’ Two defendants went to trial, denying liability. A jury found both liable.”

    – CNN’s Danielle Wiener-Bronner contributed to this report

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  • Man shot 9 times by South Carolina deputies files lawsuit alleging ‘reckless’ use of deadly force during wellness check | CNN

    Man shot 9 times by South Carolina deputies files lawsuit alleging ‘reckless’ use of deadly force during wellness check | CNN

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    CNN
     — 

    A South Carolina man, who survived being shot nine times by York County sheriff’s deputies responding to a “wellness check” call about him being suicidal two years ago, claims in a recent lawsuit that he was talking with his mother in his pickup truck when officers approached them “like cowboys from a John Wayne movie.”

    Trevor Mullinax and his mother, Tammy Beason, allege that deputies immediately drew their weapons and used deadly force without trying to deescalate the situation and are suing York County and the sheriff’s department for gross negligence, among other claims.

    The lawsuit, filed Friday and obtained by CNN, claims, “Sheriff’s deputies were grossly negligent, willful, wanton, careless, and reckless in their use of deadly force towards Plaintiff Mullinax and Plaintiff Beason, the same causing irreparable and permanent physical, mental, and emotional injury to Plaintiffs.”

    Mullinax was charged with pointing and presenting a weapon – by the State Law Enforcement Division in relation to their investigation of the shooting. That charge is still pending.

    However, attorneys for Mullinax said that while he was “lawfully in possession of a hunting shotgun” inside the truck, “at no point prior to, during, or after Sheriff’s deputies began shooting did Plaintiff Mullinax raise, point, or otherwise move with a weapon in such a fashion as would authorized Sheriff’s deputies to use deadly force.”

    In several dash and body camera videos viewed by CNN, there is no mention of seeing a gun before deputies begin firing their weapons at Mullinax’s truck. However, body camera footage shows deputies after the shooting discussing seeing a “shotgun or rifle.” A deputy can be heard saying he found a weapon in the truck.

    CNN obtained bodycam footage showing deputies with their guns drawn, surrounding the pickup truck, and demanding to see Mullinax’s hands before firing. The video also shows Beason standing beside the truck, speaking with her son through the driver’s side window. Attorneys for the family say officers fired nearly 50 shots at close range as he suffered a mental health crisis, claiming their client was contemplating suicide. Beason can be heard screaming and crying as she’s put into handcuffs by deputies. Attorneys for the family also accuse deputies of failing to render immediate medical aid to Mullinax.

    The lawsuit notes that a shocked Beason “dove backward” to avoid the bullets that hit the vehicle.

    Two years after the May 7, 2021, incident, both mother and son are suing for undetermined damages.

    Justin Bamberg, an attorney for Mullinax, said during a news conference on Tuesday that Mullinax had been hit several times by bullets, including directly in the back of his head.

    “Almost 50 shots fired at somebody who was in need of help. A citizen who was in need of help,” said Bamberg.

    Mullinax, who was present at the news conference, acknowledged that the shooting was triggered by a mental health crisis.

    “I can tell you that it’s hard to believe in the police when they destroyed everything I believe in that day,” Tammy Beason said during the news conference. “It’s taken me a very long time to recover from that. I’m still recovering.”

    According to a recording of the 911 call, a friend of Mullinax had called emergency services with another friend on a three-way call to report Mullinax was having a mental health crisis and was potentially suicidal.

    “We’re just trying to get our buddy some help,” the friend said. They told the dispatcher that they suspected the crisis was, in part, sparked by Mullinax’s belief there was a burglary warrant out for his arrest due to an incident the previous night.

    The 911 caller explained to the dispatcher that Mullinax’s mother was out with him, and that their friend “had locked himself in his truck with a knife – and I say that because I don’t want him to hop out and get shot, I don’t know if that’s his plan.” The friends provided cell phone numbers for Mullinax and his mother so law enforcement could contact them.

    However, the complaint alleges that the 911 dispatcher did not provide the responding deputies with the cellphone numbers she was given for Mullinax or his mother.

    The filing said that when deputies arrived on scene, they found Mullinax’s grandfather at the house. Body camera video obtained by CNN shows the grandfather directing deputies to where he thought Mullinax could have been parked.

    The 911 dispatcher relayed information to deputies about Mullinax being suicidal and the warrant, but deputies who arrived at the home seemed focused on the outstanding warrant based on comments recorded on body camera videos.

    “He’s got to go to jail,” a deputy said to Mullinax’s grandfather.

    As they approach the truck in the distance, a deputy can be heard in one dash camera video observing out loud that there is “somebody standing right beside” the truck and that Mullinax can be seen inside.

    Body camera video shows deputies arriving, shouting “hands up” and “hands, hands” before opening fire on the truck, with Beason still standing there, all in less than 10 seconds time.

    Tammy Beason, Mullinax's mother, on May 9, 2023.

    Mullinax was life flighted to a hospital in Charlotte, North Carolina, for his injuries. Dashcam video shows it appears at least 14 minutes went by before aid for Mullinax was provided by emergency services. He was handcuffed and removed from the pickup truck after the shooting.

    Deputies handcuffed Beason immediately after the shooting. She can be seen on body camera video hysterically crying while begging to see her son.

    “I was trying to get him to go in, and he was talking to me finally. He was talking to me. Why did y’all come? I could have done this peacefully. I could have done this peacefully,” sobbed Beason to a deputy, who captured the interaction on his body camera.

    In a news conference on Wednesday, York County Sheriff Kevin Tolson said his agency had not been served with a lawsuit and that he felt “forced” to address the claims.

    “I feel forced to address this suit out of what I consider to be the proper venue and that’s the court,” Tolson said. “I’ve never held a press conference about litigation, litigation that I haven’t even been served with yet.”

    Tolson said that Mullinax had active arrest warrants through the York Police Department for a violent felony and malicious injury to personal property. Sheriff’s deputies’ claim that Mullinax pulled and pointed a weapon at them when they arrived following a request for a wellness check for Mullinax. He said all four deputies fired their weapons at Mullinax

    “Four deputies approached an individual wanted for a violent felony who was armed with a knife and experiencing mental distress. As those deputies approached, this individual pulled a shotgun. Fearing for their safety, these deputies discharged their weapons at the individual,” said Tolson, who also claimed that Mullinax’s mother corroborated the deputies’ claims that her son grabbed a weapon when law enforcement arrived on scene.

    An image taken from video released by the York County Sheriff's Office shows the scene moments before officers opened fire on Mullinax's truck with him inside and his mother, seen in red, standing beside it on May 7, 2021.

    In response to that claim from the sheriff, attorneys for Mullinax and Beason told CNN “on the day of the shooting, Tammy Beason did tell SLED investigators that Trevor grabbed the shotgun but did so when he saw deputies driving down Highway 324, not as officers pulled right up to the front of his truck.”

    Tolson also said the SLED investigation shows upon arriving at the hospital after being by deputies, Mullinax told medical personnel that he wanted to kill himself but then “decided to have the police do it.”

    Tolson denounced criticism against police officers for their handling of situations “that should not be the responsibility of law enforcement” and said more mental health resources are needed.

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  • Hunter Biden’s aggressive new legal strategy initially caused anxiety at White House | CNN Politics

    Hunter Biden’s aggressive new legal strategy initially caused anxiety at White House | CNN Politics

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    CNN
     — 

    The White House initially reacted with anxiety toward a decision by Hunter Biden’s lawyer to pursue an aggressive legal strategy against increasing Republican attacks on him, sources familiar with the matter told CNN.

    Much of the tension centered around Kevin Morris, the lawyer, bringing on attorney Abbe Lowell, who is known for his aggressive style and litigious nature. Since joining Hunter Biden’s legal team, Lowell has fired off letters demanding investigations into Biden’s opponents, filed a federal lawsuit in his defense and been involved in a child support dispute.

    According to multiple sources, senior White House officials and Democrats held a meeting late last year with Lowell, who was expected to be handling GOP-led congressional investigations into the president’s son but whose portfolio has since expanded.

    While some of the reticence at the White House around the new legal strategy has abated, sources told CNN, the initial anxiety about publicly pushing back against Hunter Biden’s detractors underscores some of the thorny issues that President Joe Biden must contend with as he runs for reelection.

    The president affirmed his support for his son in an interview that aired Friday on MSNBC, saying that the Justice Department’s investigation would not affect his presidency. “First of all, my son has done nothing wrong. I trust him. I have faith in him,” Biden told Stephanie Ruhle. “It impacts my presidency by making me feel proud of him.”

    A source close to Hunter Biden’s legal team said one reason the anxiety has died down is because the strategy has been successful. It’s also been assuaged in part thanks to the more open lines of communication between Lowell, the White House and President Biden’s personal attorney Bob Bauer, according to a person familiar with the matter.

    A senior Biden adviser insisted that the president’s advisers “don’t direct or advise” Hunter Biden’s legal team on what to do. The senior adviser stressed that Hunter Biden is a private citizen who has the right to make his own decisions about how to handle his legal strategy.

    A spokeswoman for Lowell declined to comment.

    Hunter Biden’s legal team also has been weighing the possibility of setting up a legal defense fund to help defray his legal bills, according to a person familiar with the matter. A key hurdle is whether they could create a fund with enough guardrails to protect against ethical conflicts for the Biden family.

    House Republicans have already launched an investigation into the Biden family’s business dealings, and a legal defense fund soliciting outside donations would be yet another target for congressional scrutiny.

    Late last year, shortly after Republicans won control of the House, Hunter Biden made it clear to the White House that he wanted to take a more aggressive approach in responding to attacks against him, according to a source familiar with this legal strategy.

    At the time, Republicans had made clear that the younger Biden was going to be their top target for congressional investigations. Hunter Biden was also still staring down a long-running federal criminal investigation focused on tax- and gun-related issues. And when there appeared to be no movement in the criminal probe for months, his lawyer Morris believed it was time to go on the offensive.

    As Hunter Biden and Morris moved ahead with their approach, a source familiar with the behind-the-scenes conversations described the White House as having a very negative reaction to the more aggressive strategy and surprise that Morris brought on Lowell.

    Multiple sources familiar with the legal strategy said the addition of Lowell caused tension even within the legal team. Josh Levy, one of Hunter Biden’s attorneys who had long been aligned with the Biden White House, resigned as Lowell joined the team.

    Levy declined to comment.

    The federal criminal investigation is ongoing, and Hunter Biden’s attorneys recently met with the Justice Department. Hunter Biden denies any wrongdoing.

    Since coming on board, Lowell has fired off letters calling for investigations into various officials. In one sent to the Office of Congressional Ethics, he requested an independent ethics review of GOP Rep. Marjorie Taylor Greene’s conduct for her public statements that “sound and read like school-yard insults rather than the work of a Member of Congress.”

    Another, sent to the Treasury Department’s inspector general, asked for a review of a former Donald Trump aide who allegedly acquired and published online financial activities of Hunter Biden, known as Suspicious Activity Reports (SARs). Hunter Biden’s legal team also recently filed a lawsuit accusing the aide of harassing Biden’s team.

    Earlier this week, Lowell traveled to Arkansas to represent Biden in a child support dispute that has become a proxy for Republican investigations, underscoring his wide-reaching involvement in his client’s legal troubles.

    Lowell also filed a lawsuit in March that accused a Delaware computer repair shop owner who worked on a laptop of trying to invade Biden’s privacy and wrongfully sharing his personal data for political purposes.

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  • Adidas sued by shareholders over its failed Ye partnership | CNN Business

    Adidas sued by shareholders over its failed Ye partnership | CNN Business

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    New York
    CNN
     — 

    Adidas shareholders filed a class-action lawsuit against the brand, accusing it of failing to warn investors about the antisemitism and “extreme behavior” exhibited by the rapper formerly known as Kanye West, before their partnership ended last year.

    In the lawsuit, filed Friday in a federal court, shareholders allege that Adidas “routinely ignored” his behavior as early as 2018. They claim that senior executives “ignored serious issues” affecting the Yeezy partnership, namely his antisemitic remarks and troubling public comments about slavery.

    In a report from that year, Adidas was “generally alluding” to the risks “rather than stating that the company had actually considered ending the partnership as a result of West’s personal behavior,” according to the lawsuit. During that time, Ye said that slavery was a “choice” in a TMZ interview.

    The lawsuit said that Adidas was aware of his behavior and that the company “failed to take meaningful precautionary measures to limit negative financial exposure” if the partnership ended.

    The lawsuit doesn’t name the rapper, who now goes by Ye. Adidas’ Chief Financial Officer Harm Ohlmeyer and former CEO Kasper Rørsted are named as defendants. The suit covers anyone who bought an Adidas share from May 3, 2018 (when Ye made the slavery remark) until 2023.

    “We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them,” Adidas said in a comment to CNN.

    Adidas

    (ADDDF)
    ended its almost decade-long partnership in October 2022 after Ye wore a “White Lives Matter” T-shirt in public. The Anti-Defamation League categorizes the phrase as a hate slogan used by White supremacist groups, including the Ku Klux Klan. Days later, Ye said “I can say antisemitic s*** and Adidas

    (ADDDF)
    cannot drop me” during a podcast taping.

    Adidas said that its partnership with Ye ended because it “does not tolerate antisemitism and any other sort of hate speech” and said his comments were “unacceptable, hateful and dangerous.” It also said they violated the company’s “values of diversity and inclusion, mutual respect and fairness.”

    The company said in February that it was expected to lose $1.3 billion in revenue this year because it’s unable to sell the designer’s Yeezy clothing and shoes. In a statement, Adidas said its financial guidance for 2023 “accounts for the significant adverse impact from not selling the existing stock.” If the company can’t repurpose any of the remaining Ye clothing, Adidas said that could cost the company $534 million in operating profit this year.

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  • Tucker Carlson out at Fox News | CNN Business

    Tucker Carlson out at Fox News | CNN Business

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    CNN
     — 

    Fox News and Tucker Carlson, the right-wing extremist who hosted the network’s highly rated 8pm hour, have severed ties, the network said in a stunning announcement Monday.

    The announcement came one week after Fox News settled a monster defamation lawsuit with Dominion Voting Systems for $787.5 million over the network’s dissemination of election lies. Fox News said that Carlson’s last show was Friday, April 21.

    Carlson was a top promoter of conspiracy theories and radical rhetoric at the network. Not only did he repeatedly sow doubt about the legitimacy of the 2020 election, but he also promoted conspiracy theories about the Covid-19 vaccines and elevated white nationalist talking points.

    Jonathan Greenblatt, the head of the Anti-Defamation League, praised Fox News’ decision, saying it is “about time” and that “for far too long, Tucker Carlson has used his primetime show to spew antisemitic, racist, xenophobic and anti-LGBTQ hate to millions.”

    Tucker Carlson was a key figure in Dominion Voting Systems’ mammoth defamation lawsuit against Fox News, which the parties settled last week on the brink of trial for a historic $787 million.

    In some ways, Carlson played an outsized role in the litigation: Only one of the 20 allegedly defamatory Fox broadcasts mentioned in the lawsuit came from Carlson’s top-rated show. But, as CNN exclusively reported, he was set to be one of Dominion’s first witnesses to testify at trial. And his private text messages, which became public as part of the suit, reverberated nationwide.

    Dominion got its hands on Carlson’s group chat with fellow Fox primetime stars Sean Hannity and Laura Ingraham, and a trove of other messages from around the 2020 presidential election.

    These communications revealed that Carlson told confidants that he “passionately” hated former President Donald Trump and that Trump’s tenure in the White House was a “disaster.” He also used misogynistic terms to criticize pro-Trump lawyer Sidney Powell and reject her conspiracies about the 2020 election – even as those wild theories got airtime on Fox News.

    The lawsuit exposed how Carlson privately held a wholly different view than his on-air persona. A Dominion spokesperson did not comment on Carlson’s departure from Fox.

    Carlson was also one of the biggest promoters of conspiracy theories in right-wing media, sowing doubt about the 2020 presidential election, the January 6 insurrection, and Covid-19 vaccines.

    In the two years since the attack on the US Capitol, the Fox primetime host used his huge platform to amplify paper-thin theories that the attack was a false-flag operation orchestrated by the FBI and government agents because they loathed Trump, and that the criminal rioters were themselves the victims.

    The baseless theory originated from a right-wing website, and Carlson catapulted it into the mainstream by repeatedly featuring it on his show. He routinely suggested that Capitol rioter and Trump supporter Ray Epps was actually an FBI provocateur who sparked the deadly riot.

    In a “60 Minutes” interview that aired Sunday night, Epps had this to say about Carlson’s lies: “He’s obsessed with me. He’s going to any means possible to destroy my life and our lives.”

    Carlson’s disinformation campaign about January 6 reached its apex just a few months ago, with an assist from the newly installed House Speaker Kevin McCarthy, a California Republican.

    The top-rated Fox host obtained and aired never-before-seen footage from Capitol security cameras, but the clips were cherry-picked and selectively edited. He said on his program that he ran the tapes by the US Capitol Police before airing the material, but they disputed his claim.

    Abby Grossberg, the ex-Fox News producer who has since disavowed the network, claimed in recent lawsuits that there was rampant sexism and misogyny among Tucker Carlson’s show team.

    Grossberg, who joined Carlson’s team after the 2020 election, said in her lawsuit that after her first day on the job that “it became apparent how pervasive the misogyny and drive to embarrass and objectify women was among the male staff at TCT,” referring to “Tucker Carlson Tonight.”

    Fox News is aggressively fighting two lawsuits from Grossberg. A Fox spokesperson previously said the lawsuits were “riddled with false allegations against the network and our employees.”

    In a lawsuit filed last month, Grossberg said Carlson “was very capable of using such disgusting language about women in the workplace.” She cited some of Carlson’s private texts, where he used the phrase “c-nt” to refer to Trump lawyer Sidney Powell, a top 2020 election denier.

    Her lawsuits also describe seeing sexually suggestive posters that were visible in the workplace, facing “uncomfortable sexual questions” about her former Fox News boss Maria Bartiromo, and witnessing internal debates on which women politicians were “more f–kable.”

    In a TV interview, she said the sexual harassment was so bad that she considered suicide.

    Carlson’s departure at Fox News comes after the network also severed ties with right-wing bomb thrower Dan Bongino, who had been a regular fixture on the network’s programming, in addition to hosting a weekend show.

    “Folks, regretfully, last week was my last show on Fox News on the Fox News Channel,” Bongino said on Rumble, chalking up the exit to a contract dispute.

    “So the show ending last week was tough. And I want you to know it’s not some big conspiracy. I promise you. There’s not, there’s no acrimony. This wasn’t some, like, WWE brawl that happened. We just couldn’t come to terms on an extension. And that’s really it.”

    Fox News responded in a statement, “We thank Dan for his contributions and wish him success in his future endeavors.”

    Shares of Fox Corp.

    (FOXA)
    fell 5% on the news. The stock had been up slightly before the announcement. Carlson did not immediately respond to a CNN request for comment.

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  • NAACP files lawsuit after Mississippi governor signs legislation expanding state control over Jackson’s judicial system and policing | CNN

    NAACP files lawsuit after Mississippi governor signs legislation expanding state control over Jackson’s judicial system and policing | CNN

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    CNN
     — 

    The NAACP filed a lawsuit Friday to challenge new legislation signed by Mississippi Gov. Tate Reeves that expands the state’s law enforcement reach in the city of Jackson and implements major changes to its judicial system.

    The laws signed Friday “represent a state takeover of Jackson” and strip residents of their right to democratically elect leaders, the NAACP said in a statement.

    One of the laws, SB 2343, will expand the state-controlled Capitol Police jurisdiction from its current boundaries around state buildings to a substantially larger portion of the city. The other, HB 1020, will establish a new court system within the boundaries of a state-created district.

    The legislation will strengthen public safety in Mississippi’s capital city amid a spike in crime, Reeves said in a statement, and Capitol Police officers will provide “additional bandwidth” for Jackson’s officers to patrol other parts of the city.

    “This legislation won’t solve the entire problem, but if we can stop one shooting, if we can respond to one more 911 call – then we’re one step closer to a better Jackson,” Reeves said.

    Critics have strongly opposed the two bills as they went through the state legislature, saying such changes would put mostly White, conservative state officials in control over much of a Democratic city where more than 80% of residents are Black.

    Jackson Mayor Chokwe Antar Lumumba has previously called the legislation to create an unelected court system “an attack on Black leadership.”

    NAACP officials say the state can instead do more elsewhere to alleviate problems in Jackson.

    “If elected officials in Mississippi want to help address the results of their negligence and improve the lives of Jackson residents, they should start with completing improvements to Jackson’s water system, not undermining the constitutional rights of their citizens,” NAACP President and CEO Derrick Johnson said in a statement.

    The new court system established will be within the boundaries of a state-created district known as the Capitol Complex Improvement District – an area that includes the state Capitol building, downtown, Jackson State University, and nearby neighborhoods and businesses.

    That judge will be appointed, not elected, by the Republican state chief justice with prosecuting attorneys appointed by the Republican state attorney general to help with low-level cases.

    Republican lawmakers who pushed the legislation say it’s needed to address huge court backlogs and to stem violence that spiked in the city in recent years – much to the disagreement of the laws’ critics.

    The laws “represent a disturbing regression, rolling back decades of progress by stripping Jackson residents of their fundamental right to democratically elect leaders, undermining the authority of those they have elected, and severely restricting their first amendment right to freedom of speech,” said former US Attorney General Eric Holder, who is senior counsel at the law firm that filed the NAACP’s suit.

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  • Family of victim and survivors of Indianapolis FedEx mass shooting file lawsuit against gun magazine manufacturer and distributors | CNN

    Family of victim and survivors of Indianapolis FedEx mass shooting file lawsuit against gun magazine manufacturer and distributors | CNN

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    CNN
     — 

    The family of a victim and several survivors of a mass shooting at a FedEx facility in Indianapolis filed a lawsuit against companies involved in the manufacturing, marketing and sale of the high capacity magazine used by the gunman who killed 8 people and injured several others in 2021.

    The federal lawsuit, filed in US District Court in the Western District of New York, targets a gun distributor and magazine manufacturers, and alleges the companies recklessly marketed and sold their products to impulsive young men at risk of violence.

    The gunman in the April 15, 2021, attack, Brandon Hole, 19, was previously employed at the facility and opened fire on his former coworkers before killing himself. About a year before the attack, Hole browsed White supremacist websites, CNN previously reported. His mother contacted the police in March 2020 because she was worried about his behavior and threatening statements he’d made after he purchased a gun, according to police.

    The lawsuit was filed Thursday on behalf of the estate of Jaswinder Singh, who was killed during the shooting, Harpreet Singh, who was injured, and his wife Dilpreet Kaur, and Lakhwinder Kaur, who was also injured in the attack. They are each seeking at least $75,000 from the lawsuit and are asking for a jury trial, according to the complaint.

    The lawsuit targets American Tactical Inc., an American firearms importer, manufacturer and seller, along with the company’s president and the director of marketing and purchasing. Schmeisser GmbH, a German firearms manufacturer; and 365 Plus d.o.o., a Slovenian company that designs, produces and distributes firearms accessories and other tactical equipment are also listed as defendants.

    The three companies were involved in the manufacturing, marketing and sale of the 60-round high-capacity magazines that “have been used repeatedly to slaughter and terrorize Americans in horrific mass shootings since long before April 2021,” the lawsuit says.

    The lawsuit claims these companies made these magazines easily accessible to Hole and targeted their marketing campaign to “a consumer base filled with impulsive young men who feel they need to harm others in order to prove their strength and who have militaristic delusions of fighting in a war or a video game.”

    “This case is about what happens when companies recklessly design, market, sell, and distribute these accessories to the general public—indiscriminately—and without adherence to reasonable safeguards,” the lawsuit reads.

    American Tactical declined to comment to CNN about the lawsuit. Lawyers for the other defendants did not immediately respond to requests.

    Schmeisser GmbH manufactured the magazine used in the mass shooting and distributed it in the US through American Tactical and 365 Plus, the lawsuit claims.

    “The high capacity of the magazine emboldened the shooter to commit the attack, knowing he had the ability to fire 60 rounds continuously without the need to pause to reload,” the lawsuit says.

    The complaint says American Tactical promoted marketing videos that show men dressed in tactical vests similar to what Hole wore during the 2021 attack as they fire “a constant stream of bullets at unseen targets in various offensive, tactical operations.”

    The lawsuit alleges the firearm companies placed an “unreasonably dangerous product on the market without sufficient safeguards to prevent its foreseeable unlawful use.”

    The Brady Center to Prevent Gun Violence, the gun control advocacy organization that employs two of several lawyers representing the plaintiffs, wrote in a statement to CNN the nonprofit is “trying to achieve justice for these survivors and their family, and hold American Tactical, Inc. accountable for their irresponsible marketing and sales practices.”

    “If you decide to sell such highly lethal products to the general public anyway, you need to be very careful about who you’re selling them to. As we allege in our complaint, defendants here have instead taken a hard turn and specifically marketed their highly lethal products to a dangerous class of individuals,” said Philip Bangle, the Brady Center’s senior litigation council.

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  • What to know ahead of the Fox News and Dominion trial | CNN Business

    What to know ahead of the Fox News and Dominion trial | CNN Business

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    New York
    CNN
     — 

    A trial in a defamation suit brought against Fox News by Dominion Voting Systems is set to begin this week. It could have significant ramifications for the right-wing cable channel.

    Dominion is an election technology company. After former president Donald Trump lost the 2020 presidential election to Joe Biden, Dominion alleged Fox pushed various pro-Trump conspiracy theories, including false and potentially damaging information about the company’s voting technology, because “the lies were good for Fox’s business.” Fox is arguing that it was merely reporting the claims made by the Trump administration and Donald Trump’s associates.

    It filed a defamation lawsuit in 2021. The trial is set to begin Monday in Delaware.

    Here are 5 things to know ahead of the trial.

    Dominion wants the network’s star hosts and top executives to appear on the witness stand during trial, it said in a court filing in March.

    Here’s who could appear as witnesses, if Dominion gets its way:

    • Suzanne Scott, Fox News CEO

    • Jay Wallace, Fox News president

    • Hosts Sean Hannity, Tucker Carlson, Maria Bartiromo, Laura Ingraham and Bret Baier

    Abby Grossberg, a former Fox News producer who alleged that the network’s lawyers coerced her into providing misleading testimony in a lawsuit filed March

    • In April, Delaware Superior Court Judge Eric Davis said Dominion could compel Fox Corporation Chairman Rupert Murdoch and his son, CEO Lachlan Murdoch, to testify, in a big blow to Fox.

    “Both parties have made these witnesses very relevant,” Davis said, regarding the Murdochs. Fox was trying to block Dominion from having the Murdochs on the witness stand.

    Dominion is asking for $1.6 billion in damages and additional punitive damages.

    That could be a major financial hit to Fox. Fox Corporation, the right-wing news outlet’s owner, has an estimated $4 billion in cash on hand, according to its latest earnings statement. It’s also unclear how much insurance the company has, or what any insurance policy would cover.

    Punitive damages are, however, uncapped in Delaware, with no legal maximum limit.

    The network claims that number is a wildly overblown amount designed to grab attention in headlines.

    Fox argued in a statement the case is about protecting “the rights of the free press” and a verdict in favor of Dominion would have “grave consequences” for the fourth estate.

    “Dominion’s lawsuit is a political crusade in search of a financial windfall, but the real cost would be cherished First Amendment rights,” a Fox spokesperson said in a statement.

    Defamation cases are hard to win in the United States, because of the Supreme Court’s ruling in New York Times v. Sullivan in 1964. Defamation has to meet a high standard. An entity can’t have just lied, it must have known (or at least strongly suspected) it was lying at the time, and it has to have been done with “actual malice.” The court has already ruled on the first two, saying that Fox aired lies and knew they were lies, so instead of a question of truth, it’s about whether Fox did so maliciously.

    Though major figures at Fox privately acknowledged reality – that former President Donald Trump had lost to President Joe Biden in 2020 – Fox continued to air conspiracies and lies in order to keep its large audience engaged.

    A cache of private messages, emails and depositions revealed that Fox may not have upheld the journalistic responsibility to report the truth to audiences. The judge has rejected several of Fox’s First Amendment defenses and in pretrial rulings barred the network from arguing its guests’ alleged defamatory statements were “newsworthy” and deserving of coverage.

    Legal filings made public a trove of private text messages, emails and deposition transcripts, revealing how Fox hosts, producers, and executives really felt about Trump.

    The damning behind-the-scenes communications were included in roughly 10,000 pages of court documents that have been made public as part of the lawsuit, many of which are likely to be shown in the trial.

    For example, host Tucker Carlson said in one text message he “passionately” hates Trump. In one November 2020 exchange, Tucker Carlson said Trump’s decision to snub Joe Biden’s inauguration was “so destructive,” adding that Trump’s post-election behavior was “disgusting” and that he was “trying to look away.”

    Murdoch emailed New York Post’s Col Allan, describing Trump’s election lies as “bulls**t and “damaging.”

    Murdoch’s private messages revealed how his own thoughts contradicted what Fox espoused. “Maybe Sean [Hannity] and Laura [Ingraham] went too far,” Murdoch wrote in an email Fox News chief executive Suzanne Scott, apparently referencing election denialism after Trump’s loss to President Joe Biden.

    The trial will begin Monday in Delaware at 9 am ET, with expected opening statements at some point during the day. Jury selection is also expected to wrap up Monday morning, ending with a panel of 12 jurors and 12 alternates. It’s anticipated that opening statements will begin immediately after the jury is seated. The trial is expected to last five to six weeks.

    Dominion will need to convince the jury that Fox acted with “actual malice” — showing the right-wing network’s hosts and executives knew what was being said on-air was false but broadcast it anyway, or acted with such a reckless disregard for the truth that they should be held liable.

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  • Minneapolis reaches settlements in 2 suits alleging then-officer Derek Chauvin used excessive force years before George Floyd’s killing | CNN

    Minneapolis reaches settlements in 2 suits alleging then-officer Derek Chauvin used excessive force years before George Floyd’s killing | CNN

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    CNN
     — 

    The city of Minneapolis has reached settlements totaling more than $8.8 million in two civil lawsuits that accuse former police officer Derek Chauvin of using excessive force in two incidents that happened nearly three years before he killed George Floyd during an arrest.

    The plaintiffs, John Pope and Zoya Code – both Black – said Chauvin restrained them on the ground with his knee on their necks, a move similar to the one he would later deploy on Floyd and which was determined be a contributing factor in his death.

    Chauvin was sentenced to more than 20 years in prison for Floyd’s 2020 murder, during which the former officer knelt on the 46-year-old Black man’s neck for more than nine minutes as he cried out, “I can’t breathe.”

    The Minneapolis City Council unanimously voted Thursday to approve a $7.5 million settlement in Pope’s case and a $1.375 million in Code’s case, the city said in a release.

    Their lawsuits alleged that the Minneapolis Police Department’s failure to intervene in Chauvin’s pattern of excessive force ultimately led to Floyd’s killing. The two suits collectively named seven other Minneapolis police officers who were present during the arrests as defendants.

    “Derek Chauvin is exactly where he should be, which is in federal prison,” Minneapolis Mayor Jacob Frey said during a media conference on Thursday. “He should have been fired in 2017. He should have been held accountable in 2017. … If the supervisors had done the right thing, George Floyd would not have been murdered.”

    Frey went on to apologize to Pope, Code and any others who have “experienced this kind of egregious conduct at the hands of Derek Chauvin.”

    The attorney who represented Pope and Code, Bob Bennett, said Thursday that problem far exceeds Chauvin.

    “Beware the ease of blaming Chauvin alone. While he is a blunt instrument of police brutality and racism, he could never flourish in a police agency that lived up to its mission statement,” Bennett said in a statement.

    They urged people to “focus instead on the MPD rank and file who supported Chauvin with their unquestioning obedience, failure to intervene to stop his heinous acts, and their failure to report them per policy and human conscience.”

    Minneapolis Police Chief Brian O’Hara apologized Thursday to Pope and Code and called Chauvin “a national embarrassment to the policing profession.”

    “This is an example of the cancer that has infected this department,” O’Hara said. “Today is not a day for excuses or attempts at justification. The notion that we are dealing with the bad actions of one employee is false. We are dealing with the ugly consequences stemming from a systemic failure within the Minneapolis Police Department that has allowed for, and at times encouraged, unjust and brutal policing.”

    The US Department of Justice launched a federal civil investigation into the Minneapolis Police Department’s practices in April 2021.

    CNN has attempted to reach out to Chauvin’s attorney for comment.

    Code encountered Chauvin on June 25, 2017, when he and another officer responded to a call in which Code’s mother reported her daughter assaulted her, the lawsuit states.

    While in the home, the officers forced Code to the ground and handcuffed her “without incident,” according to the lawsuit. Chauvin then carried her out of the house by her arms, which were handcuffed behind her back, it says.

    “Outside the residence, Defendant Chauvin gratuitously slammed Zoya’s unprotected head on the ground. Then he immediately took his signature pose, kneeing on the back of Zoya’s neck,” the lawsuit states. The city said in its Thursday release that Chauvin knelt on her for several minutes, even after she had been restrained by a hobble.

    Chauvin later lied about the encounter in his police report and “left out critical information about the interaction,” the city said.

    Code’s experience was “strikingly similar” to that of Pope, who was 14 years old at the time of his September 4, 2017 arrest, their attorneys said.

    While responding to a domestic dispute call, Chauvin repeatedly struck Pope in the head with a metal flashlight and pinned him to the floor with his knee on Pope’s upper back and neck for more than 15 minutes, the lawsuit states.

    “Many significant details in the officers’ reports are not consistent with what happened,” during their interaction with Pope that day, the city said.

    That encounter led to a federal civil rights indictment against Chauvin, who pleaded guilty to all charges in December 2021, admitting to using “unreasonable and excessive force.”

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  • JPMorgan executives knew about sex abuse claims against then-client Jeffery Epstein, court filing alleges | CNN Business

    JPMorgan executives knew about sex abuse claims against then-client Jeffery Epstein, court filing alleges | CNN Business

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    New York
    CNN
     — 

    A new court filing alleges JPMorgan Chase executives were aware of sex abuse and trafficking allegations against its then-client Jeffrey Epstein, several years before the financial institution cut ties.

    The latest complaint, part of a lawsuit against the bank filed by the attorney general for the US Virgin Islands (USVI), adds an additional count alleging that JPMorgan obstructed federal law enforcement and prosecuting agencies pursuing Epstein.

    “JP Morgan’s relationship with Epstein in allowing his sex-trafficking venture to access large sums of cash each year went far beyond a normal (and lawful) banking relationship,” the filing says, adding that bank executives were also aware of potentially suspicious cash withdrawals.

    Epstein, 66, was a client of the financial institution until 2013. He was found dead in a New York prison in August 2019.

    Epstein was awaiting trial on federal charges accusing him of operating a sex trafficking ring from 2002 to 2005 at his Manhattan mansion and his Palm Beach estate, in which he paid girls as young as 14 for sex.

    The new complaint against JP Morgan, filed Wednesday, comes days after its CEO Jamie Dimon sat down with CNN’s Poppy Harlow in an exclusive interview.

    Dimon told Harlow that “hindsight is a fabulous gift,” when asked whether the bank should have acted sooner after Epstein entered a guilty plea to soliciting prostitution with a minor in Florida in 2008.

    A JP Morgan spokesperson declined to comment to CNN about the newly filed complaint, which was part of the lawsuit filed in December.

    Attorneys for JP Morgan have denied the allegations. They accused the USVI government of looking for “deeper pockets,” according to court filings.

    The amended complaint details internal email exchanges and documents, alleging several examples that refute Dimon’s suggestion that the financial institution needed “hindsight” regarding Epstein.

    According to the filing, JPMorgan executive Mary Erdoes “admitted in her deposition that JPMorgan was aware by 2006 that Epstein was accused of paying cash to have underage girls and young women brought to his home.”

    “Mary Erdoes testified that JP Morgan terminated Epstein as a customer in 2013 after she became aware that the withdrawals were ‘actual cash,’” the filing alleged. Erdoes’ deposition was taken last month.

    In addition, the filing claims that the JPMorgan Rapid Response Team noted in 2006 that Epstein “routinely” made cash withdrawals in amounts from $40,000 to $80,000 several times per month, totaling over $750,000 per year. Officials concluded that year that “his account ‘should be classified as high risk’ and require special approval.”

    Internal emails quoted in the filing show JP Morgan employees including senior executives discussed coverage of the Epstein allegations for years after 2006 until he was terminated as a client seven years later. High level bank officials also met about Epstein’s account and the allegations against him as far back as 2008, according to the court filing.

    In 2010, the company’s risk management division flagged Epstein’s official status as a sex offender. That was two years after he pleaded guilty to solicitation of prostitution with a minor in 2008 and spent about 13 months in prison.

    “See below new allegations of an investigation related to child trafficking – are you still comfortable with this client who is now a registered sex offender,” according to an email in the newly unredacted portions of the court filing.

    Ghislaine Maxwell, a longtime confidante of Epstein’s who was also a JP Morgan client, was flagged in 2011 by the bank’s anti-money laundering compliance director when she allegedly sought to open an account for a “personal recruitment consulting business.”

    “What does she mean by personal recruitment? Are you sure this will have nothing to do with Jeffrey? If you want to proceed, I suggest that we flag this as a High Risk Client,” the director wrote in an internal email.

    Also that year, a senior compliance official reviewing JP Morgan’s information on Epstein called him a “sugar daddy,” noting his sponsorship of private bank accounts and credit cards for two 18-year-olds “that appear to be part of his inner entourage,” the lawsuit says.

    Last month, a federal district judge presiding over the case in Manhattan ruled that the lawsuit against JPMorgan could move forward, partially denying the bank’s motion to dismiss the suit.

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  • Rival rulings on medication abortion hypercharge the post-Roe legal war | CNN Politics

    Rival rulings on medication abortion hypercharge the post-Roe legal war | CNN Politics

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    CNN
     — 

    A pair of conflicting federal court rulings on Friday created arguably the most contentious and chaotic legal flashpoint over abortion access since the Supreme Court’s ruling last summer that overturned Roe v. Wade and ended the right to an abortion nationwide.

    Within less than an hour, two major rulings came down in separate, closely watched cases concerning medication abortion – in lawsuits that are completely at odds with each other.

    In one case, filed by anti-abortion activists in Texas, a judge said the FDA’s 2000 approval of mifepristone – one of the drugs used to terminate a pregnancy – should be halted. But the court paused its ruling for a week so that it can be appealed, and that appeal is already under way.

    In the second case, where Democratic-led states had sued in Washington to expand access to abortion pills, a judge ordered the federal government to keep the drug available in the 17 states, plus the District of Columbia, that brought the lawsuit.

    On their face, both cases deal with the administrative law that controls how the US Food and Drug Administration goes about regulating mifepristone. The disputes did not rely directly on the question of whether there is a right to an abortion – the question that was at the center of the Supreme Court’s ruling last June. But tucked in the Texas ruling, by US District Judge Matthew Kacsmaryk, was the idea that embryos could have individual rights that courts can consider in their rulings.

    Both cases emerge from a political environment that was unleashed by the Supreme Court’s Roe v. Wade reversal and a willingness to push the legal envelope that the Supreme Court ruling created. The abortion issue is now on a path back to the Supreme Court, as higher courts are asked to sort out the contradictory commands of Friday night’s decisions.

    Because the Texas judge has paused his ruling, it has no immediate impact on the availability of medication abortion drugs. But the next several days stand to be a dramatic and combustible legal fight over the order – a fight ratcheted up by the rival ruling in Washington.

    Besides pausing his ruling for one week, Kacsmaryk – an appointee of former President Donald Trump who sits in Amarillo, Texas – seemed to hold nothing back as he ripped apart the FDA’s approval of mifepristone and embraced wholeheartedly the challengers’ arguments the drug’s risks weren’t adequately considered.

    Kacsmaryk, whose anti-abortion advocacy before joining the federal bench was documented by a recent Washington Post profile, showed a striking hostility to medication abortion, which is the method used in a majority of the abortions in the United States.

    Leading medical organizations have already condemned his opinion and pushed back at the judge’s analysis of the safety of medication abortion.

    The judge said that the FDA failed to consider “the intense psychological trauma and post-traumatic stress women often experience from chemical abortion,” in what was a repeated invocation of “chemical abortion,” the term preferred by abortion opponents. Kacsmaryk suggested that the FDA’s data was downplaying the frequency with which the drug being mistakenly administered to someone who had an ectopic pregnancy, i.e. a pregnancy outside the cavity of the uterus. He repeated the challengers’ accusations that the FDA’s approval process had been the subject of improper political pressure.

    He said the FDA’s refusal to impose certain restrictions on the drug’s use “resulted in many deaths and many more severe or life-threatening adverse reactions.”

    “Whatever the numbers are, they likely would be considerably lower had FDA not acquiesced to the pressure to increase access to chemical abortion at the expense of women’s safety,” he said.

    Jack Resneck Jr., the president of the American Medical Association, said in a statement that Kacsmaryk’s ruling “flies in the face of science and evidence and threatens to upend access to a safe and effective drug.”

    “The court’s disregard for well-established scientific facts in favor of speculative allegations and ideological assertions will cause harm to our patients and undermines the health of the nation,” the AMA president said.

    Kacsmaryk’s opinion paid no heed to the argument made by the FDA’s defenders that cutting off access to medication abortion would put the health of pregnant people at risk and that it would force abortion seekers to terminate their pregnancies through a surgical procedure instead.

    Instead, the judge wrote that a ruling in the challengers’ favor would ensure “that women and girls are protected from unnecessary harm and that Defendants do not disregard federal law.”

    As he explained why the preliminary injunction – which was being handed down before the case could proceed to a trial – was justified, he said that embryos had their own rights that could be part of the analysis. That assertion goes farther than what the Supreme Court said in its June ruling, known as Dobbs v. Jackson Women’s Health.

    “Parenthetically, said ‘individual justice’ and ‘irreparable injury’ analysis also arguably applies to the unborn humans extinguished by mifepristone — especially in the post-Dobbs era,” Kacsmaryk said Friday.

    Whereas Kacsmaryk had been asked by the challengers in Texas to block medication abortion, US District Judge Thomas Owen Rice, who sits in Spokane, Washington, was considering whether abortion pills should be easier to obtain.

    Rice, an Obama appointee, granted the Democratic attorneys general who brought the lawsuit a partial win.

    They had asked Rice to remove certain restrictions – known as REMS or Risk Evaluation and Mitigation Strategy – the FDA has imposed on mifepristone, with the blue states arguing the drug was safe and effective enough to make those restrictions unnecessary.

    While Rice is rejecting that bid for now, he granted a request the states also made that the FDA be ordered to keep the drugs on the market. But Rice’s ruling only applies in the 17 plaintiff states and the District of Columbia.

    His decision maintains the status quo for the availability of abortion pills in those places and he specifically is blocking the agency from “altering the status quo and rights as it relates to the availability of Mifepristone under the current operative January 2023 Risk Evaluation and Mitigation Strategy.”

    Rice’s opinion was a striking split screen to Kacmsaryk’s. While the Texas judge said the FDA did not adequately take into account the drug risks, Rice showed sympathy to the arguments that the rules for mifepristone’s use were too strict and that the agency should be taking a more lenient approach to how the abortion pill is regulated.

    Ultimately, he said he would not grant the Democratic states’ request that he remove some of the drug restrictions at this preliminary stage in the proceedings, because that would go well beyond maintaining the status quo while the case advances. He noted that if he had granted that request, it would also undo a new FDA rule that allows pharmacies to dispense abortion pills. That would reduce its availability and would run “directly counter to Plaintiffs’ request.”

    If Kacsmaryk’s ruling halting mifepristone’s approval is allowed to go into effect, it will run headlong into Rice’s order that mifepristone remain available in several states. Kacsmaryk’s ruling is a nationwide injunction.

    The Justice Department and Danco, a mifepristone manufacturer that intervened in the case to defend the approval, both filed notices of appeal. Both Attorney General Merrick Garland and Danco said in statements that in addition to the appeals, they will seek “stays” of the ruling, meaning emergency requests that the decision is frozen while the appeal moves forward.

    They’re appealing to the US 5th Circuit Court of Appeals, which is sometimes said to be the country’s most conservative appeals court. Yet some legal scholars were skeptical that the 5th Circuit, as conservative as it is, would let Kacmsaryk’s order take effect.

    Washington, where the blue states’ lawsuit was filed, is covered under the 9th Circuit, a liberal appellate court. But it’s unclear if the ruling from Rice will be appealed. Garland said the Justice Department was still reviewing the decision out of Washington. A so-called circuit split would increase the odds that the Supreme Court would intervene. But given how the practical impact of the two district court rulings contradict each other, the Supreme Court may have no choice but to get involved.

    The lawyer for the challengers in the Texas case, anti-abortion medication associations and doctors, said Friday evening that he had not reviewed the Washington decision, so he could not weigh in on how it impacted Kacsmaryk’s order that the drug’s approval be halted.

    “I’m not sure whether there’s a direct conflict yet and with the Washington state decision just because I haven’t read it yet, but there may not be a direct conflict,” Erik Baptist, who is an attorney with Alliance Defending Freedom, said. “But if there is a direct conflict then there may be – it may be inevitably going to the Supreme Court, but I’m not convinced that it’s necessary at this point to make that conclusion.”

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  • Chipotle accuses Sweetgreen of trademark infringement over its ‘chipotle chicken’ bowl | CNN Business

    Chipotle accuses Sweetgreen of trademark infringement over its ‘chipotle chicken’ bowl | CNN Business

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    New York
    CNN
     — 

    Chipotle Mexican Grill is suing rival Sweetgreen for trademark infringement over the latter’s recently released salad bowl.

    In a lawsuit filed Tuesday, Chipotle said that Sweetgreen’s “Chipotle Chicken Burrito Bowl” is being marketed in a “very similar and directly competitive” manner that is similar to Chipotle’s chicken burrito bowl. Sweetgreen released the salad last week, with a press release saying the new menu item uses “chipotle spices.”

    Chipotle argues that the Sweetgreen salad not only has similar ingredients, including chicken, a grain base (i.e. rice) and black beans, but also took issue with Sweetgreen’s marketing because it accuses its rival of “making prominent use of the famous Chipotle trademark” in ads.

    Sweetgreen said it is aware of Chipotle’s lawsuit, but it doesn’t comment on pending litigation.

    The salad chain’s shares fell more than 10% on the news Wednesday.

    Chipotle also accused Sweetgreen of using a “font nearly identical” to Chipotle’s on its website promoting the new salad. Some of Sweetgreen’s ads also use color that’s “nearly identical” to Chipotle’s trademarked Adobo Red.

    In a statement to CNN, Chipotle said it is “committed to protecting our valuable trademarks and intellectual property,” adding that “consistent with that, we will take appropriate actions whenever necessary to protect our rights and our brand.”

    Chipotle

    (CMG)
    said in its lawsuit that it reached out to Sweetgreen to stop and didn’t receive a response, claiming that Sweetgreen “continued its infringing conduct.” It suggested that Sweetgreen alter the name of its new bowl by using the word chipotle in lower case and re-naming it as a “chicken bowl with chipotle.”

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  • US Justice Department sues Norfolk Southern following train derailment in East Palestine | CNN

    US Justice Department sues Norfolk Southern following train derailment in East Palestine | CNN

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    CNN
     — 

    The US Justice Department filed a civil lawsuit against Norfolk Southern Thursday, alleging violations of the Clean Water Act (CWA) and seeking damages over the train derailment and subsequent environmental disaster in East Palestine, Ohio, in February.

    The Norfolk Southern Railway Company and parent company Norfolk Southern Corporation are both named in the suit, court records show. The DOJ filed the lawsuit on behalf of the Environmental Protection Agency.

    The DOJ says the lawsuit seeks “injunctive relief, cost recovery, and civil penalties” for violations of the CWA, including discharges of pollutants and hazardous materials into waters, and under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

    Norfolk Southern says its focus is on making “progress every day cleaning up the site, assisting residents whose lives were impacted by the derailment, and investing in the future of East Palestine and the surrounding areas,” according to a statement sent to CNN from the company’s spokesperson, Connor Spielmaker, on Friday.

    “We are working with urgency, at the direction of the US EPA, and making daily progress,” the statement said. “That remains our focus and we’ll keep working until we make it right.”

    On February 3, a Norfolk Southern train derailed, igniting a dayslong inferno, spewing poisonous fumes into the air, killing thousands of fish and leaving residents to wonder if it was safe to live in East Palestine, Ohio.

    The fiery derailment prompted fears of a catastrophic explosion of vinyl chloride – a highly flammable chemical linked to an increased risk of cancer. After a mandatory evacuation order, crews released vinyl chloride into a trench and burned it off – averting an explosion but spawning new health concerns.

    Officials said tests showed that the air and municipal water were safe and allowed residents to return home, but some have reported a variety of new health problems including rashes, nausea, bloody noses and trouble breathing.

    While studying the possible health impacts from the train derailment, seven US government investigators also briefly fell ill in early March, the US Centers for Disease Control and Prevention confirmed to CNN on Thursday.

    “Symptoms resolved for most team members later the same afternoon, and everyone resumed work on survey data collection within 24 hours. Impacted team members have not reported ongoing health effects,” a CDC spokesperson said in a statement.

    The train operator Norfolk Southern must handle and pay for all necessary cleanup, according to the Environmental Protection Agency. The company has sent some hazardous waste out of state – fueling more questions about safety.

    The DOJ isn’t the only one filing a lawsuit against the railroad. The state of Ohio also filed a 58-count federal lawsuit against the rail company on March 14, saying Norfolk Southern violated numerous state, federal and Ohio common laws and violated the state’s CERCLA act.

    Norfolk Southern has set up a new web page that summarizes community impact efforts. Spielmaker said it “provides a 7-day look ahead and is updated daily and outlines Norfolk Southern’s continued environmental remediation efforts in concert with state and federal authorities.”

    “When a Norfolk Southern train derailed last month in East Palestine, Ohio, it released toxins into the air, soil, and water, endangering the health and safety of people in surrounding communities,” Attorney General Merrick B. Garland said in a statement. “With this complaint, the Justice Department and the EPA are acting to pursue justice for the residents of East Palestine and ensure that Norfolk Southern carries the financial burden for the harm it has caused and continues to inflict on the community.”

    The Justice Department, citing annual company reports, alleges in the suit Norfolk Southern both increased operating income and dropped operating costs over the past four years, including making “reductions in spending to repair, service, and maintain locomotives and freight cars, perform train inspections, and pay engine crews and train crews.” The suit also alleges that these measures are a “focus” of the compensation of the company’s executives.

    The lawsuit claims when the train derailed and cars carrying hazardous materials were breached, the dispersion and subsequent combustion of those materials released toxic chemicals into the “air, soil, groundwater, and waterways.”

    The DOJ says seven local waterways including the Ohio River were contaminated as a result.

    The Ohio Department of Natural Resources reported “thousands of aquatic animals were killed in the five-mile span of waterway from the Site” to the confluence of two creeks the DOJ described as contaminated, the lawsuit says.

    DOJ is asking for $64,618 per day, per violation of the CWA and $55,808 per day or $2,232 per barrel of oil or unit of hazardous substance, per violation of the CWA – but it was not immediately clear from the suit how many days the DOJ considered the violation to be applicable.

    They’re also seeking a declaration of liability against the company for response costs; a mandated increase in safety precautions by Norfolk Southern when transporting hazardous materials; and for the railroad to “remedy, mitigate, and offset” the environmental damage and public health issues that have arisen as a result of the derailment, court documents show.

    In early March, Norfolk Southern CEO Alan Shaw told a US Senate hearing that the company would “clean the site safely, thoroughly, and with urgency.”

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  • Ex-Fox producer said she gave misleading testimony in Dominion case ‘to keep my job’ | CNN Business

    Ex-Fox producer said she gave misleading testimony in Dominion case ‘to keep my job’ | CNN Business

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    CNN
     — 

    Abby Grossberg, the former Fox News producer who accused the right-wing network of pressuring her into giving misleading testimony in the Dominion defamation case, told NBC News Thursday in her first TV interview that she was “bullied, intimidated and coerced” into protecting the right-wing network to keep her job.

    “It felt awful. I mean it felt terrible because I knew that I was bullied, intimidated, and coerced into saying that just to keep my job and stay at the company,” Grossberg told NBC.

    Asked why she did that, Grossberg said “Because I made the decision to keep my job so that I can keep paying my bills. It seemed like the safer decision for me at the time.”

    Her latest comments echo what she said last week in an interview with CNN’s Oliver Darcy, where she said she filed the lawsuit to protect her career and “expose the lies and deceit” that she says is rampant at the right-wing network.

    Fox News contests all of her allegations, and said in a prior statement that, “the assertion that Ms. Grossberg was coached or intimidated into being dishonest during her Dominion deposition is patently false.”

    Fox News also denies wrongdoing in the underlying Dominion case, and says it didn’t defame anyone.

    Last week, Grossberg filed explosive lawsuits in New York and Delaware accusing Fox News lawyers of pressuring her into providing misleading testimony in the Dominion case – testimony that would protect the network and its top talent. Since filing the lawsuit, she submitted new sworn testimony in the Dominion defamation case that undermines some of Fox’s defenses.

    She also claimed in her lawsuit that she had been subjected to a toxic and sexist work environment while at Fox News. The network has vehemently pushed back against these allegations.

    After filing the lawsuit, Grossberg was fired from Fox News. The right-wing network said in a statement that she violated corporate rules improperly exposed legally privileged information in her lawsuit.

    During Thursday’s interview, Grossberg said that she experienced harassment so severe that she thought about killing herself.

    “I reached a breaking point where the harassment was so bad that I called a crisis line,” Grossberg told NBC News. “I thought I could just walk in front of a car and I wouldn’t have to go to work tomorrow.”

    Describing the allegedly toxic workplace at the right-wing network, Grossberg said: “Women were objectified. It was a game. It was a sport. Female politicians who came on the show were mocked. There were debates about who they’d rather sleep with. C-word all the time.”

    A Fox News spokesperson didn’t offer any comment when asked about Grossberg’s mention of suicide. But the spokesperson denied Grossberg’s claims of workplace misogyny, saying her lawsuit was “riddled with false allegations against the network and our employees.” The spokesperson also noted that women are currently serving as the CEO of Fox News Media and the presidents of two of its networks.

    Fox News is no stranger to claims of workplace sexism. Fox News founder Roger Ailes, former primetime star host Bill O’Reilly and other men were forced out amid sexual harassment allegations, and the network has paid tens of millions to settle related lawsuits.

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  • The US case against Binance calls out one of the worst-kept secrets in crypto | CNN Business

    The US case against Binance calls out one of the worst-kept secrets in crypto | CNN Business

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    Editor’s Note: A version of this story appeared in CNN Business’ Nightcap newsletter. To get it in your inbox, sign up for free, here.


    New York
    CNN
     — 

    If you live in America, you’re not allowed to trade crypto derivatives. And if you’re a big international platform for trading crypto derivatives, you can’t let Americans trade those products if you haven’t registered with the boring-sounding but not-to-be-trifled-with federal regulator known as the Commodity Futures Trading Commission, or CFTC.

    Today, that regulator sued Binance, the world’s largest cryptocurrency exchange, for allegedly doing just that. (And if that name sounds familiar, it may because back in November, Binance briefly flirted with bailing out its smaller rival, FTX. Obviously, Binance took one look under the hood at FTX, now at the center of a massive federal fraud investigation, and promptly bailed.)

    Here’s the deal: The CFTC alleges that Binance and its CEO violated US trading laws by, among other things, secretly coaching “VIP” customers within the United States on how to evade compliance controls.

    The commission, which regulates US derivatives trading, said the company and its CEO, Changpeng Zhao, “instructed its employees and customers to circumvent compliance controls in order to maximize corporate profits.”

    Which, you know, isn’t something you want to be caught doing. The CFTC can’t bring criminal charges, but it can seek heavy fines and potentially ban Binance from registering in the US in the future.

    Binance said the lawsuit was “unexpected and disappointing,” adding that it has made “significant investments” in the past two years to ensure that US-based investors are not active on the platform.

    As news of the lawsuit broke Monday, Zhao, known as “CZ,” tweeted the number 4, pointing to a part of a previous statement: “Ignore FUD, fake news, attacks, etc.” (FUD is a commonly used acronym among crypto folks that stands for “fear, uncertainty, doubt.”)

    Binance has long argued that it isn’t subject to US laws because it doesn’t have a physical headquarters in America. Or anywhere, really — CZ claims that the company’s headquarters are wherever he is at any point in time, “reflecting a deliberate approach to attempt to avoid regulation,” according to the CFTC’s lawsuit.

    The CFTC’s lawsuit is certainly not great news for Binance, or for crypto more broadly. But it’s not quite the seismic event that was FTX’s collapse, or even the Terra/Luna meltdown. (You can read more about those here and here but, tl;dr: Those 2022 events were, to use a technical term, holy-crap-sell-everything-call-your-dad-and-cry moments for crypto investors.)

    Prices of bitcoin and ethereum, the two most popular cryptocurrencies, fell more than 3% Monday. Which is to say, it was just another day trading virtual currencies.

    Perhaps the most significant part of the lawsuit is the way the CFTC loudly calls out one of the worst-kept secrets in all of crypto: That not only are US customers gaining access to risky offshore crypto derivatives they shouldn’t be allowed to access, but it’s also pretty darn easy to do so. All anyone needs is a VPN and an iron stomach, because crypto derivatives are leveraged bets on wildly unstable assets. (And like everything in this newsletter, that shouldn’t be taken as any kind of advice.)

    The likely outcome, said Timothy Cradle, a crypto compliance and regulation expert at Blockchain Intelligence Group, will be that Binance ends up paying “hundreds of millions of dollars” in fines and will be prevented from registering a derivatives exchange in the future. That’s “a terminal blow for users of their service located in the US and a significant hit to Binance’s revenue” as the suit alleges US users make up 16% of the revenue for Binance’s derivatives product.

    Monday’s news adds yet another layer of regulatory scrutiny on crypto’s biggest players. The Internal Revenue Service and Securities and Exchange Commission are also reportedly also investigating Binance, per Bloomberg.

    Meanwhile, Coinbase, the largest US-listed crypto exchange, received a so-called Wells notice (typically a precursor to enforcement action) last week from the SEC for possible securities law violations.

    And just to pile on: The crypto industry earlier this month lost two of its biggest connections to the mainstream finance world — Silvergate and Signature Bank.

    All in all, not a great month for the industry that is perpetually straining credibility even when it’s hot. And right now, it is decidedly not.

    Enjoying Nightcap? Sign up and you’ll get all of this, plus some other funny stuff we liked on the internet, in your inbox every night. (OK, most nights — we believe in a four-day work week around here.)

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  • Idaho governor signs bill that restricts transgender students’ bathroom use in schools | CNN Politics

    Idaho governor signs bill that restricts transgender students’ bathroom use in schools | CNN Politics

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    Washington
    CNN
     — 

    Idaho Republican Gov. Brad Little signed a bill this week that prohibits transgender students in the state from using public school bathrooms that do not align with their gender assigned at birth.

    Senate Bill 1100, which takes effect July 1, requires public schools to provide separate male and female bathrooms, locker rooms, showers, dressing areas and overnight accommodations for students in the state. The restrictions do not apply to single-occupancy restrooms. The bill also requires reasonable accommodations to be made for students who are unwilling or unable to use multi-occupancy restrooms or changing facilities.

    “Requiring students to share restrooms and changing facilities with members of the opposite biological sex generates potential embarrassment, shame, and psychological injury to students,” the bill states.

    Under the law, students can take legal action against the schools in instances where they encounter people of the opposite sex using gendered facilities if the schools gave those people permission to use the facilities or failed to “take reasonable steps” to prevent the person from using those facilities.

    Students who are successful in their private lawsuits will receive $5,000 from the public school systems for each time they saw “a person of the opposite sex” in those gendered facilities or sleeping quarters and can receive monetary damages from schools for psychological, emotional or physical harm.

    Advocates have for years worked to combat bathroom bills like the one passed in Idaho, blasting them as an unnecessary and harmful attack on transgender students’ humanity.

    Democratic state Sen. Rick Just told CNN on Saturday that he had voted against the bill largely because it allows people to file private lawsuits against school systems. “I don’t believe it’s helpful to encourage citizens to seek damages whenever they feel aggrieved in the slightest way,” he told CNN in an email.

    Republican state Rep. Ted Hill, one of the bill’s sponsors, said the legislation would ultimately “bring peace” among the schools, school boards and parents, and that it would help them focus on students’ education instead.

    “The most important part of this legislation was to recognize the rights of everyone,” Hill told CNN in an email. “Recognized the rights for young girls to be safe and secure in a place where they are most vulnerable, same for the boys to be safe and secure where they are most vulnerable, and the rights for everyone else to be safe, secure and comfortable in a place where they are most vulnerable.”

    Little did not immediately respond to a request for comment on the bill Saturday.

    Following the legislation’s passage, the Human Rights Campaign, the largest LGBTQ advocacy group in the US, slammed Little and said, “LGBTQ+ people in Idaho deserve the opportunity to live their lives with dignity and respect.”

    “Unfortunately, the bills that Gov. Little is signing into law will make life harder on LGBTQ+ folks across the state,” the group’s state legislative director and senior counsel, Cathryn Oakley, said in a statement. “These bills will not accomplish anything other than to further alienate and stigmatize those already on the margins of life in this state.”

    The Human Rights Campaign said that more “bathroom bills” have been filed across the country so far in 2023 than in any previous year.

    The Idaho legislation follows similar bills Republican governors in Arkansas and Iowa signed this past week.

    On Tuesday, Arkansas Republican Gov. Sarah Huckabee Sanders signed a bill that prevents transgender people from using restrooms that do not match the sex they have listed on their birth certificates. And in Iowa, Republican Gov. Kim Reynolds signed a bill prohibiting transgender people from using school restrooms that do not correspond to their sex assigned at birth.

    Transgender Americans make up a tiny fraction of kids in the US – the US Centers for Disease Control and Prevention has estimated less than 2% of high school students identify as transgender.

    Health care professionals have said the types of bills Republicans are pushing are likely to further ostracize transgender kids, a group that already struggles with higher rates of depression, anxiety and suicide.

    The political debate around which bathrooms trans people are allowed to use exploded in 2016, when North Carolina enacted a law that required people at government-run facilities to use bathrooms and locker rooms that corresponded to the gender on their birth certificates, if the rooms in question were multiple-occupancy. The measure drew intense criticism from businesses and advocates, and it was later repealed.

    Alongside the transgender legislation, Little signed House Bill 186, which allows for executions by firing squad in Idaho if the state cannot obtain the drugs needed for lethal injection. Several states have struggled to source the drugs required for lethal injection, causing them to pause executions.

    This story has been updated with further reaction.

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  • Biden, DOJ won’t assert privilege in Trump deposition in lawsuit brought by fired FBI official | CNN Politics

    Biden, DOJ won’t assert privilege in Trump deposition in lawsuit brought by fired FBI official | CNN Politics

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    CNN
     — 

    The Justice Department said Friday that neither it nor the Biden White House would assert certain privileges in depositions of former President Donald Trump and FBI Director Christopher Wray that have been ordered in a lawsuit brought by an ex-FBI official whose termination Trump pushed for when he was president.

    The new filing from the Justice Department in the lawsuit brought by former FBI official Peter Strzok is the latest example of the Biden administration having to weigh the protections of the presidency against the extraordinary legal cases related to President Joe Biden’s predecessor.

    Strzok’s lawsuit alleges that Trump’s political agenda prompted his firing and that the Justice Department broke the law in publicly releasing texts he had exchanged with former FBI lawyer Lisa Page. The texts revealed that Page and Strzok – who both worked on the Trump-Russia probe when it was in its early stages – had expressed anti-Trump sentiments and that they were engaged in a romantic, extramarital affair. Trump repeatedly called for Strzok’s ouster before he was terminated in 2018. Page has also brought her own lawsuit over the release of texts.

    The Justice Department had sought to quash the subpoenas of Trump and Wray, but was unsuccessful, with DC District Judge Amy Berman Jackson ruling that both men had to sit for depositions. Jackson’s ruling, which she issued after a sealed hearing in February, also said the depositions must be limited to less than two hours and that they must focus on a narrow set of issues in the case.

    When the Justice Department was seeking to quash the subpoenas, it had indicated that the presidential communications privilege could limit what questions Wray could answer about his communications with Trump concerning the matters in dispute in the lawsuit. Jackson ordered the DOJ to indicate by late March whether Biden would assert privilege in the depositions and Friday’s filing indicated the administration would not engage in a privilege fight.

    “The Executive Office of the President will not assert the Presidential Communications Privilege, and Defendants will not assert the Deliberative Process Privilege, with respect to the authorized topics,” the filing said. It added that a representative of Trump was made aware of the ruling ordering the depositions and said that “Former President Trump has not requested an assertion of privilege over any of the information within the scope of the authorized deposition.”

    The department, however, signaled in the filing that it still might appeal Jackson’s order, with a footnote stating that “Defendants expressly reserve their rights to seek further review of this Court’s February 23, 2023 decision.”

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