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Tag: Lawsuits

  • Trump files $15 billion defamation lawsuit against The New York Times

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    NEW YORK — President Donald Trump filed a $15 billion defamation lawsuit against The New York Times and four of its journalists on Monday, according to court documents.

    The lawsuit filed in U.S. District Court in Florida names several articles and one book written by two of the publication’s journalists and published in the lead up to the 2024 election, saying they are “part of a decades-long pattern by the New York Times of intentional and malicious defamation against President Trump.”

    “Defendants published such statements negligently, with knowledge of the falsity of the statements, and/or with reckless disregard of their truth or falsity,” the lawsuit says.

    The New York Times did not immediately respond to an email requesting comment early Tuesday.

    In a Truth Social post announcing the lawsuit, Trump accused The New York Times of lying about him and defaming him, saying it has become “a virtual ‘mouthpiece’ for the Radical Left Democrat Party.”

    Trump has gone after other media outlets, including filing a $10 billion defamation lawsuit against the The Wall Street Journal and media mogul Rupert Murdoch in July after the newspaper published a story reporting on his ties to wealthy financier Jeffrey Epstein.

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  • Trump wants to end a half-century-old mandate on how companies report earnings | Fortune

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    President Donald Trump wants corporations to “no longer be forced” to report earnings every quarter.

    In a Truth Social post on Monday, he said companies should instead only be required to post earnings every six months, pending the U.S. Securities and Exchange Commission’s approval. This change would break a quarterly reporting mandate that’s been in place since 1970. 

    “This will save money, and allow managers to focus on properly running their companies,” Trump wrote.

    Trump added that China has a “50 to 100 year view on management of a company,” as opposed to U.S. companies required to report four times in a fiscal year. China’s Hong Kong Stock Exchange (HKEX) allows companies to submit voluntary quarterly financial disclosures, but only requires them to report their financial results twice a year.

    During his first term, Trump publicly asked the SEC on X, then still known as Twitter, to study shifting company disclosures from a quarterly to semiannual basis, stating business leaders felt less frequent reporting would allow for greater flexibility and long-term planning. 

    He told reporters at the time that he got the idea from CEOs.

    “It made sense to me because, you know, we are not thinking far enough out,” Trump said in 2018. “We’ve been accused of that for a long time, this country. So we’re looking at that very, very seriously.”

    No change came from the SEC.

    A revived debate

    “President Trump has revived an old idea emphasizing the costs of quarterly filings, the distraction from long-term goals, and how they reinforce Wall Street’s obsession with beating short-term expectations,” Usha Haley, a professor at the Barton School of Business at Wichita State University, told Fortune.

    For his part, SEC Chair Paul Atkins has explicitly called for more transparency as he’s taken control of the regulatory body this year.

    But companies keep pushing back. Last week, the San Francisco-based Long Term Stock Exchange said it planned to petition the SEC to end its quarterly reporting requirement. The exchange lists companies focused on long-term goals.

    Critics of the move argue that it might reduce transparency for investors.

    Chad Cummings, a CPA and attorney at Cummings & Cummings Law, told Fortune semiannual reporting enables companies to hide “red flags” like deteriorating cash flows or abrupt changes in auditor language, which can lead to unsavory practices like concealment of liquidity crises, accounting fraud, and whistleblower retaliation.

    “Removal of quarterly earnings sabotages valuation models and tilts power to insiders,” Cummings, who has active bar admissions in the U.S. Tax and Bankruptcy courts, added.

    SEC approval would face internal resistance, statutory barriers, and potential litigation, as the SEC’s investor protection mandate requires “reasonably current” disclosure, Cummings said.

    If regulators stopped requiring companies to report earnings every quarter without having clear legal authority, the decision could be challenged in court under the Administrative Procedure Act, a federal law that governs how U.S. administrative agencies create regulations, he warned.

    Meanwhile, Haley also said Trump’s nod to China’s financial disclosure mandates misses the point.

    “The United States is not China,” she said. “Our markets derive their strength and global dominance through transparency, investor protections, and a long tradition of disclosures… Weakening those guardrails, while invoking efficiency risks, undermines investors’ confidence, the foundation of U.S. capital markets, which China does not have.”

    Fortune Global Forum returns Oct. 26–27, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.

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    Nino Paoli

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  • Lawyer Up, Buttercup! Megan Thee Stallion’s Defamation Case Is Ready for a Houston Showdown

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    Houston rapper Megan Thee Stallion‘s defamation case against Milagro Gramz is making progress, with a new deposition scheduled to take place in a Houston court. This latest development in the defamation case is set to zero in on allegations of evidence tampering and uncooperative behavior.

    Source: Tommaso Boddi / Getty

    For those who’ve been following the legal drama, Megan Thee Stallion’s defamation case against Milagro Gramz is part of a broader legal push by the Houston femcee to hold bloggers and online personalities accountable for spreading misinformation. The lawsuit, filed after Tory Lanez was convicted of shooting Meg, alleges that Gramz was paid thousands of dollars to speak negatively about Megan during her coverage of the case. In a not-so-surprising twist, the person allegedly giving her those payments was none other than Tory Lanez’s father, Sonstar Peterson.

    The upcoming deposition is set to be exactly two hours and was approved by a federal magistrate judge in the Southern District of Florida. According to AllHipHop, a deposition date is yet to be set. However, Megan’s legal representatives believe this is a necessary step to “question [Milagro’s] alleged tampering of evidence and communications with other important people in this case.”

    Megan Thee Stallion’s Defamation Case Involves Alleged Tampering & Uncooperative Defendants

    This new deposition will focus on issues and evidence brought up during the first one on July 21st. A particularly key issue is the alleged conversations Milagro Gramz had with Tory Lanez‘s father. According to HotNewHipHop, in August, Megan’s lawyers accused Gramz of “deleting ‘thousands of messages’” with Sonstar Peterson. “Despite good faith attempts at conferral, Defendant has presented no well-reasoned explanation for the mass deletion of thousands of messages from her cell phone,” Megan’s lawyers said. The legal team also noted that Gramz failed to comply with a May 27th deadline to present digital records, such as metadata and texts.

    This isn’t the first time Megan’s legal team has had to deal with uncooperative individuals. As BOSSIP reported, they previously dealt with a similar situation in Tory Lanez’s own deposition, which was described as “incredibly rude and disruptive.” Lanez reportedly interrupted Megan’s lawyers and insulted one of them by begging for her to comb her hair, but the behavior ultimately backfired in Meg’s favor. He was eventually ordered to cover Megan’s legal fees, with a magistrate judge now set to supervise his future testimonies.

    Megan Thee Stallion’s defamation case against Milagro Gramz is a part of a larger mission to hold bloggers and social media personalities accountable for their actions. As she said in a previous statement, “It’s time to hold bloggers accountable for years of harassment, cyberbullying, and the publication of misinformation about my personal and professional life. I’ve endured countless attacks on my character based on false narratives from social media bloggers misrepresenting themselves as journalists. It’s unacceptable behavior and these individuals need to understand there will be repercussions for recklessly posting lies and defamatory falsehoods.”

    The upcoming deposition in Houston, followed by the trial in November, is the latest chapter in this ongoing legal fight for justice and accountability.

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    Kerbi Lynn

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  • Florida applies for federal reimbursement for ‘Alligator Alcatraz’ costs despite court warning

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    The state of Florida has asked the federal government to reimburse it for the costs of its “Alligator Alcatraz” immigrant detention camp, despite a recent appeals court ruling that receiving federal funds would trigger environmental reviews that the state ignored when it hastily built the camp.

    “The State of Florida submitted an application for reimbursement to the Federal Emergency Management Agency (FEMA),” a Department of Homeland Security (DHS) spokesperson says. “FEMA has roughly $625 million in Shelter and Services Program funds that can be allocated for this effort.”

    Last week, the U.S. Court of Appeals for the 11th Circuit lifted a lower court’s preliminary injunction shutting down the Everglades detention camp, allowing operations there to resume. It was a victory for Florida Republican Gov. Ron DeSantis, but it also complicated the state’s plan to be reimbursed by the federal government for hundreds of millions of dollars in expenses, as DeSantis repeatedly promised would happen.

    The appeals court panel ruled, in response to a lawsuit by the environmental advocacy nonprofits Friends of the Everglades and the Center for Biological Diversity, that the detention camp is not subject to environmental impact studies required by the National Environmental Policy Act (NEPA) because it has so far been entirely paid for by the state of Florida.

    “Here, no federal dollars have been expended on the construction or use of the Facility,” Judge Barbara Lagoa wrote in the majority opinion. “So, the Florida-funded and Florida-operated detention activities occurring at the Site do not conceive a ‘major federal project’ either.”

    “There may come a time when [the Florida Department of Environmental Protection] applies for FEMA funding,” Lagoa continued. “If the Federal Defendants ultimately decide to approve that request and reimburse Florida for its expenditures related to the Facility, they may need to first conduct an [environmental impact statement]. But, having not yet formally ‘committed to funding that project,’ the Federal Defendants have taken no ‘major federal action’ subjecting them to the procedural requirements of NEPA.”

    As the Associated Press reported Wednesday, the ruling created an apparent predicament for the state: “The state can either pass up federal reimbursement for hundreds of millions of dollars spent to build and operate the facility, or take the money and face an environmental review, which would risk halting the center’s operations,” the A.P. reported.

    But Florida has already applied for such funding, according to DHS’ statement to Reason.

    DHS and FEMA did not respond to requests for a copy of Florida’s application. No funds are reported to have been disbursed yet.

    DeSantis’ office did not respond to a request for comment. The Florida Division of Emergency Management (FDEM), which is the state agency in charge of the detention camp, responded by sending a link to a DeSantis press conference from last month.

    Friends of the Everglades argues that, although no money has changed hands, the tacit agreement between the federal government and the state of Florida, and the repeated public statements by Florida and DHS officials, clearly show that the federal government has committed to pay for the project.

    In a dissenting opinion, Judge Adalberto Jordan agreed, writing that “the notion that Florida decided to build the detention facility without a concrete funding commitment from the federal government is squarely contradicted by the preconstruction statements of [DHS] Secretary [Kristi] Noem and Governor DeSantis that the United States will pay for the facility.”

    Friends of the Everglades says Florida’s reimbursement application only adds to the pile of evidence that the federal government has always intended to pay for the project.

    “Time will prove the trial judge and Judge Jordan correct—and this evidence will support our case when we return to the trial court,” says Paul Schwiep, the lead counsel for Friends of the Everglades in its lawsuit.

    Federal and Florida officials have had a tacit reimbursement agreement for months.

    In a June 20 email, disclosed last month in a court filing, the Trump administration’s nominee for DHS general counsel, James Percival, wrote to the Florida Attorney General’s Office regarding Florida’s plan to detain aliens under an agreement with the federal government. “If you go forward, we will work out a method of partial reimbursement,” Percival wrote.

    At a June 25 press conference, DeSantis said the federal government would fully reimburse Florida. “This is something that was requested by the federal government, and this is something that the federal government is going to fully fund,” DeSantis said. “From a state taxpayer perspective, we are implementing it…but that will be fully reimbursed by the federal government.”

    Noem also said in public statements over the summer that FEMA funds would be used to reimburse Florida.

    The FDEM estimated in August that a shutdown of the facility would cost it more than $218 million it had already invested.

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    C.J. Ciaramella

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  • Uber sued over alleged discrimination against people with disabilities

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    The federal government said Friday that it is suing Uber for allegedly discriminating against passengers with disabilities.

    The Department of Justice said Uber drivers routinely refuse to serve individuals with disabilities, including those with service dogs. Uber is the largest ride-hailing company in the U.S.

    The lawsuit alleges that Uber drivers have charged illegal cleaning fees for service animal shedding and imposed cancellation fees after denying service. The lawsuit also alleges that drivers have refused to allow disabled individuals to sit in the front seat so they can use the back seat for mobility devices.

    Disabled individuals have missed appointments, experienced significant delays and have been stranded in inclement weather, the lawsuit said.

    “For too long, blind riders have suffered repeated ride denials by Uber because they are traveling with a service dog,” said Assistant Attorney General Harmeet Dhillon of the Justice Department’s Civil Rights Division. “This lawsuit seeks to end this persistent discrimination and allow riders with disabilities to use Uber.”

    In a statement Friday, Uber said all of its drivers must acknowledge and agree to comply with its service animal and accessibility policies.

    Uber said it prohibits drivers from denying service to someone with a service animal and it requires drivers to provide transportation to a person with a disability as long as they get into the vehicle on their own. It also prohibits drivers from refusing to assist with the stowing of devices like walkers, crutches and folding wheelchairs.

    “Riders who use guide dogs or other assistive devices deserve a safe, respectful and welcoming experience on Uber — full stop,” the company said. Uber said it disagrees with the allegations in the lawsuit.

    Uber said it established a hotline in 2023 for customers who were denied a ride because of a service animal. Uber said when it confirms that a violation has occurred, it takes action, including deactivating a driver’s account.

    The Department of Justice is seeking $125 million for disabled individuals who have previously submitted complaints to Uber or the Department of Justice.

    The case was filed in federal court in Northern California. Uber Technologies is based in San Francisco.

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  • Georgia judge won’t award attorneys fees to governments in lawsuit over Rivian vehicle plant

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    ATLANTA — A judge has rejected an attempt by the state of Georgia and a local development agency to force people who unsuccessfully sued to block an electric vehicle plant to pay the government’s legal fees.

    State government and the development authority demanded that six Morgan County property owners who challenged the zoning for Rivian Automotive pay more than $337,000 in legal fees incurred by the government.

    Morgan County Superior Court Judge Stephen Bradley, in a ruling filed Friday, said that the two lawsuits where the government agencies were seeking fees were far from frivolous, and that awarding legal fees to the government could make it harder for regular citizens to exercise their rights to challenge government actions in court.

    “No truly aggrieved citizen should be prohibited from suing to test the legality or constitutionality of the government’s claims, and any precedent that could allow political actions and costs to be offloaded to complaining litigants would be untenable,” Bradley wrote.

    JoEllen Artz, a leader of opposition group No2Rivian, said the ruling keeps citizens from being “silenced by Goliath.”

    The state is seeking to recover another $200,000 in fees in a separate case in Atlanta. A spokesperson for Attorney General Chris Carr didn’t immediately return an email seeking comment.

    The ruling came days before a Tuesday groundbreaking ceremony for the $5 billion Rivian plant, which is supposed to eventually employ 7,500 people on a 2,000-acre site near Social Circle, about 45 miles (70 kilometers) east of downtown Atlanta.

    Some local residents oppose the plant, saying it is an inappropriate neighbor to farms and will ruin residents’ drinking-water well in a rural area on eastern edge of Atlanta’s suburban frontier. The property’s previous owner, a joint development authority that includes the governments of Jasper, Morgan, Newton and Walton counties, transferred ownership of the land to the state. That extinguished what could have been a contentious rezoning fight because state land is generally exempt from local zoning laws.

    But the lawsuits challenged whether that was appropriate, questioning whether leasing land to Rivian for a truck assembly plant was a public purpose, or whether Rivian’s private activity still required rezoning by Morgan County.

    Bradley ruled against the plaintiffs, but he acknowledged in Friday’s ruling that the transfers “seem clearly designed to circumvent resistance from local voices opposing the Rivian project.”

    The development authority, in a statement published in The Covington News, argued it should recoup attorney fees because the lawsuits were illegitimate attempts to “delay progress, costing taxpayers and the community.”

    But Bradley said the plaintiffs did not sue in bad faith and a had chance of winning because they raised “new and unanswered questions of law” about the state’s traditional immunity from being sued.

    “As shown in the defendants’ reactions, there was a very real chance that a court could decide in the plaintiffs’ favor,” Bradley wrote.

    The Morgan County Commission, which was also sued, didn’t seek attorneys’ fees.

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  • Texas drops lawsuit against doctor accused of illegally providing care to transgender youth

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    DALLAS — One of the nation’s first doctors accused of illegally providing care to transgender youth under GOP-led bans was found to have not violated the law, Texas Attorney General Ken Paxton’s office says, nearly a year after the state sued the physician.

    Dr. Hector Granados, a pediatric endocrinologist in El Paso, was called a “scofflaw” last year by Paxton’s office in a lawsuit that accused him of falsifying medical records and violating a Texas ban that took effect in 2023. More than two dozen states have prohibitions on gender-affirming care for transgender youth, but Texas was the first to bring cases against doctors, filing lawsuits against Granados and two other providers.

    The cases against the other doctors, both in Dallas, remain ongoing. But Paxton’s office quietly withdrew its lawsuit last week against Granados, saying in a statement that “no legal violations were found” following a “review of the evidence and Granados’ complete medical records.”

    Granados, who says Paxton’s office never reached out before suing him last October, said he wished the state had first let him show he had stopped providing gender-affirming care for youth before the law took effect.

    “It was just out and then we had to do everything afterwards,” Granados said in an interview.

    The U.S. Supreme Court ruled in June that states can ban gender-affirming medical care for transgender minors, and at least 27 states have adopted laws restricting or banning the care. Although those accused of violating bans face criminal charges in some states, they do not in Texas, where the punishments instead expose providers to steep fines and revocation of their medical licenses.

    Paxton’s office said in a statement that Dr. May Lau and Dr. M. Brett Cooper, the other accused physicians, will “face justice for hurting Texas kids both physically and mentally.” Their attorneys didn’t offer comment Wednesday.

    “Attorney General Paxton will continue to bring the full force of the law against the delusional, left-wing medical professionals guilty of forcing ‘gender’ insanity on our children,” Paxton’s office said.

    Paxton, a close ally of President Donald Trump, has sought to position himself as a national leader among the GOP’s ascendant hard right and is running for the U.S. Senate.

    Trump, in his second term, has launched a broad charge against transgender rights, moving to reverse years of legal and policy gains for transgender Americans. Even in states where the care is allowed under state law, major hospitals and hospital systems have said they were stopping or restricting the care.

    Harper Seldin, a staff attorney for the American Civil Liberties Union’s LGBTQ & HIV Project, said that even when a lawsuit is dropped, it still takes “an enormous toll” on those who have to defend themselves.

    “I think this continues to be best understood as part of the Texas AG’s campaign to intimidate medical providers,” he said.

    Granados said he was meticulous in halting gender-affirming care for youth before Texas’ ban took effect. He said that before the ban, treating transgender youth was just an extension of his practice that treats youth with diabetes, growth problems and early puberty.

    He said that after the ban, he did continue to prescribe puberty blockers and hormone replacement therapy, but that those treatments were not for gender transition. Granados said they were for youth with endocrine disorders, which occur when hormone levels are too high or too low.

    Texas’ lawsuit against Granados called him a “scofflaw who is harming the health and safety of Texas children.” It referenced a 2015 news article about transgender care that quoted Granados and medical articles he had written on the topic. Also listed in the lawsuit were details on unnamed patients, including their ages and what they had been prescribed, including testosterone.

    In a court document filed in Cooper’s case, an attorney in Paxton’s office said they had subpoenaed provider reports for the doctor’s testosterone prescriptions from the Texas Prescription Monitoring Program.

    Granados’ attorney, Mark Bracken, said that after entering into an agreed protective order with the state, they were able to confidentially produce patient records to show Granados had complied with the law.

    Peter Salib, an assistant professor of law at the University of Houston Law Center, said that it’s “unusual” for a state to drop a case due to lack of violations after filing a lawsuit.

    “They have a lot of opportunity to find out what is going on before they decide to bring a lawsuit,” he said.

    Granados said he’s grateful to no longer have the lawsuit on the back of his mind.

    “It always puts a toll on you and how you feel,” he said.

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  • Pennsylvania plastics company settles ‘nurdles’ pollution case for $2.6 million

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    A Pennsylvania plastics manufacturer will pay $2.6 million for allegedly violating the federal Clean Water Act and will ensure that no more of its plastic pellets leak into waterways, under a proposed settlement with two environmental groups.

    • This article originally appeared on Inside Climate News, a nonprofit, nonpartisan news organization that covers climate, energy and the environment. Sign up for their newsletter here.

    PennEnvironment and Three Rivers Waterkeeper sued Styropek USA, claiming the company discharged large quantities of “nurdles”—tiny pellets used to produce a wide variety of plastic products—into a western Pennsylvania creek, polluting the water and leaving the pellets on creek-side vegetation. Testing by state officials also found that the plastic pollution had increased due to stormwater runoff from the site.

    Environmentalists called the agreement, announced Thursday, a landmark that will set a precedent for other plastics manufacturers in Pennsylvania and around the country. It comes amid growing evidence that plastics in general, and nurdles specifically, represent a threat to human health and natural systems.

    “It’s a precedent-setting settlement in many ways,” said David Masur, executive director of PennEnvironment, in an interview. “It has one of the largest Clean Water Act citizen-suit penalties in Pennsylvania history but even more important, it includes requirements that should get the facility to move to zero discharge of pellets.”


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    The plaintiffs were joined in recent weeks by Pennsylvania’s Department of Environmental Protection, which intervened in the case, saying the company violated two state laws in addition to the federal statute.

    “Pennsylvanians have a right to a clean and safe environment,” DEP Secretary Jessica Shirley said in a statement. “This consent decree holds Styropek accountable for its violations and ensures they act to stop further unlawful discharges while supporting the cleanup of a treasured creek in Beaver County.”

    The company said it welcomed the settlement, which resolves a related notice of violation from the DEP, and added that it is committed to environmental quality. “Styropek is pleased that the parties have reached an agreement that will contribute positively to the Beaver County community,” it said in a statement.

    The agreement requires Styropek, which uses nurdles to make polystyrene foam, to install the latest monitoring technology to track whether the pellets leak from its Monaca property. The settlement imposes an automatic penalty if even a single pellet is found outside its plant. The company is also required to redesign its stormwater system so that it captures all pellet waste rather than spreading it into waterways.

    For now, because the company idled the plant in March, the settlement applies to flows of stormwater from its 400-acre site. If the plant restarts production or is sold, the requirements would also apply to production.

    Steve Miano, an environmental lawyer at Hangley Aronchick Segal Pudlin & Schiller in Philadelphia, who wasn’t involved in the case, said it’s not clear whether the settlement will set a national precedent as the plaintiffs believe, because other plastics cases are pending.

    But he called the consent decree “very comprehensive” and said it “could very well” be used as a template for similar cases. “It remains to be seen if the technologies employed … will sufficiently remove the plastics from the discharges,” he wrote in an email. “The [consent decree] seems to require alternative plans if the initial technology is not effective.”

    The required use of monitoring technology aims to prevent future nurdle releases because the pellets are virtually impossible to clean up, said Heather Hulton VanTassel, executive director of Three Rivers Waterkeeper.

    “The widespread installation of these technologies is the next step to preventing future plastic pollution and protecting our source drinking water,” she said.

    The pellets often look like food to many aquatic animals and birds, which eat them. They remain in the stomachs of wildlife, leading to malnutrition and starvation, and sometimes death, Masur said. As they break down and become microplastics, they serve as magnets for harmful chemicals, including carcinogens, neurotoxins and endocrine disruptors, which become more concentrated and toxic as they move up the food chain, with devastating impacts on wildlife and, potentially, human health.

    Styropek was chosen for the suit, filed in December 2023, because it had a track record of Clean Water Act violations, Masur said. That’s in contrast to the nearby ethane-cracker plant operated by Shell, although that plant has had a long series of air-quality violations since it opened in 2022.

    VanTassel said her group and the Mountain Watershed Association have been watching for nurdle discharges from the Shell plant for the last several years but have not found significant quantities of the pellets from that source. The groups found large nurdle discharges that were traced to Styropek, and that data was used in the suit.

    She predicted the settlement will set a national precedent because it’s the first citizen action on plastic pellets to be based on Clean Water Act violations of an inland waterway, and because this is the first time in a citizen lawsuit over nurdles that a state regulator intervened in support of plaintiffs’ claims.

    “Our regulators have decided that our agreement to deal with plastic-pellet pollution at the zero-tolerance level is the appropriate way to regulate plastics,” she said.

    The agreement is expected to be approved by the federal court for Western Pennsylvania, given that all parties have agreed to it and the judge had been pushing to finalize it, Masur said.

    Of the fine, $2 million will support a fund to investigate and clean up pellet pollution in the water, sediment and banks of Raccoon Creek, where the company operates. A further $500,000 will create a fund to support efforts to protect water quality in the creek and nearby areas of the Ohio River watershed. The company agreed to pay another $100,000 in civil penalties to a clean water fund operated by the state.

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    Jon Hurdle, Inside Climate News

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  • Screw the money — Anthropic’s $1.5B copyright settlement sucks for writers | TechCrunch

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    Around half a million writers will be eligible for a payday of at least $3,000, thanks to a historic $1.5 billion settlement in a class action lawsuit that a group of authors brought against Anthropic.

    This landmark settlement marks the largest payout in the history of U.S. copyright law, but this isn’t a victory for authors — it’s yet another win for tech companies.

    Tech giants are racing to amass as much written material as possible to train their LLMs, which power groundbreaking AI chat products like ChatGPT and Claude — the same products that are endangering the creative industries, even if their outputs are milquetoast. These AIs can become more sophisticated when they ingest more data, but after scraping basically the entire internet, these companies are literally running out of new information.

    That’s why Anthropic, the company behind Claude, pirated millions of books from “shadow libraries” and fed them into its AI. This particular lawsuit, Bartz v. Anthropic, is one of dozens filed against companies like Meta, Google, OpenAI, and Midjourney over the legality of training AI on copyrighted works.

    But writers aren’t getting this settlement because their work was fed to an AI — this is just a costly slap on the wrist for Anthropic, a company that just raised another $13 billion, because it illegally downloaded books instead of buying them.

    In June, federal judge William Alsup sided with Anthropic and ruled that it is, indeed, legal to train AI on copyrighted material. The judge argues that this use case is “transformative” enough to be protected by the fair use doctrine, a carve-out of copyright law that hasn’t been updated since 1976.

    “Like any reader aspiring to be a writer, Anthropic’s LLMs trained upon works not to race ahead and replicate or supplant them — but to turn a hard corner and create something different,” the judge said.

    It was the piracy — not the AI training — that moved Judge Alsup to bring the case to trial, but with Anthropic’s settlement, a trial is no longer necessary.

    “Today’s settlement, if approved, will resolve the plaintiffs’ remaining legacy claims,” said Aparna Sridhar, deputy general counsel at Anthropic, in a statement. “We remain committed to developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems.”

    As dozens more cases over the relationship between AI and copyrighted works go to court, judges now have Bartz v. Anthropic to reference as a precedent. But given the ramifications of these decisions, maybe another judge will arrive at a different conclusion.

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    Amanda Silberling

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  • Google facing $425.7 million in damages for nearly a decade of improper smartphone snooping

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    SAN FRANCISCO — A federal jury has ordered Google to pay $425.7 million for improperly snooping on people’s smartphones during a nearly decade-long period of intrusions.

    The verdict reached Wednesday in San Francisco federal court followed a more than two-week trial in a class-action case covering about 98 million smartphones operating in the United States between July 1, 2016, through Sept. 23, 2024. That means the total damages awarded in the five-year-old case works out to about $4 per device.

    Google had denied that it was improperly tracking the online activity of people who thought they had shielded themselves with privacy controls. The company maintained its stance even though the eight-person jury concluded Google had been spying in violation of California privacy laws.

    “This decision misunderstands how our products work, and we will appeal it,” Google spokesman Jose Castaneda said Thursday. “Our privacy tools give people control over their data, and when they turn off personalization, we honor that choice.”

    The lawyers who filed the case had argued Google had used the data they collected off smartphones without users’ permission to help sell ads tailored to users’ individual interests — a strategy that resulted in the company reaping billions in additional revenue. The lawyers framed those ad sales as illegal profiteering that merited damages of more than $30 billion.

    Even though the jury came up with a far lower calculation for the damages, one of the lawyers who brought the case against Google hailed the outcome as a victory for privacy protection.

    “We hope this result sends a message to the tech industry that Americans will not sit idly by as their information is collected and monetized against their will,” said attorney John Yanchunis of law firm Morgan & Morgan.

    The San Francisco jury verdict came a day after Google avoided the U.S. Department of Justice’s attempt to break up the company in a landmark antitrust case in Washington, D.C., targeting its dominant search engine. A federal judge who had declared Google’s search engine to be an illegal monopoly ordered less radical changes, including requiring the company to share some of its search data with rivals.

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  • Colorado jury awards $21 million to woman paralyzed in fall from Crested Butte ski lift

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    A Colorado jury on Friday awarded $21 million to a woman who was paralyzed when she fell from a ski lift at Crested Butte Mountain Resort three years ago.

    The jury verdict comes just over a year after the Colorado Supreme Court considered the woman’s case and ruled that liability waivers do not protect ski resorts when resorts violate state laws or regulations. That ruling allowed the lawsuit to go forward and likely ended a push by ski resorts to use such waivers to shield themselves from almost all lawsuits.

    The case and its $21 million verdict may open up new avenues for skiers to sue ski operators, particularly over incidents involving chairlifts, said Brian Aleinikoff, an attorney for Annie Miller, the woman who fell in 2022.

    “For the longest time, ski areas have been so insulated from lawsuits,” he said. “…At the end of the day the ‘inherent dangers’ and risks of skiing aren’t going to change. If you are skiing and you hit a rock or a bare patch or some ice or you go over a cliff, that is on you. But I think how some of the ski lifts operate — that is really where this will have the biggest impact moving forward.”

    Jurors on Friday awarded the family $5.3 million in non-economic damages, $10.5 million in economic damages and $5.3 million in damages for physical impairment and disfigurement, according to an order from 17th Judicial District Court Judge Jeffrey Smith.

    The jury assigned 25% of the fault for the incident to Miller and 75% of the fault to Vail Resorts, which owns Crested Butte Mountain Resort. Vail Resorts expects to pay a total of $12.4 million in damages both because of the jury’s assignment of fault and a statutory cap on non-economic damages.

    “We disagree with the decision and believe that it was inconsistent with Colorado law,” Katie Lyons, communications manager for Vail Resorts, said in an email. “Still, we recognize the personal toll this accident has taken on Ms. Miller and her family, and we wish her continued strength in her recovery. We remain committed to the highest safety standards in our operations.”

    Miller, now 20, was 16 when she fell 30 feet from a four-seat, high-speed chairlift at Crested Butte on March 16, 2022. Miller boarded the Paradise Express lift with her father, but couldn’t get properly seated, and grabbed the chairlift to keep from falling.

    Her father and others began to yell for the lift to be stopped as she was dragged forward, but the lift continued with Miller hanging from the chair and her father trying to pull her back to safety.

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    Shelly Bradbury

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  • Scale AI is suing a former employee and rival Mercor, alleging they tried to steal its biggest customers   | TechCrunch

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    Scale AI, which helps tech companies prepare data to train their AI models, filed a lawsuit against one of its former sales employees and its rival Mercor on Wednesday. The suit claims the employee, who was hired by Mercor, “stole more than 100 confidential documents concerning Scale’s customer strategies and other proprietary information,” according to a copy seen by TechCrunch.

    Scale is suing Mercor for misappropriation of trade secrets and is suing the former employee, Eugene Ling, for breach of contract. The suit also claims the employee was trying to pitch Mercor to one of Scale’s largest customers before he officially left his former job. The suit calls this company “Customer A.”

    Mercor co-founder Surya Midha denies that his company used any data from Scale, although he admits that Ling may have been in possession of some.

    “While Mercor has hired many people who departed Scale, we have no interest in any of Scale’s trade secrets and in fact are intentionally running our business in a different way. Eugene informed us that he had old documents in a personal Google Drive, which we have never accessed and are now investigating,” Midha told TechCrunch in an emailed statement. 

    “We reached out to Scale six days ago offering to have Eugene destroy the files or reach a different resolution, and we are now awaiting their response,” Midha said.

    Scale alleges that these documents contained the specific data that would allow Mercor to serve Customer A, as well as several other of Scale’s most important clients.

    Scale wanted Mercor to give it a full list of the files in the drive, and to prevent Ling from working with Customer A. It alleges in the suit that Mercor refused. Ling did not immediately respond to TechCrunch’s request for comment, but he later wrote on X: “Just heard I’m getting sued by Scale. Last month, I left Scale to work at Mercor. I know this was frustrating for my old team, and I feel bad about that.”

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    Continued Ling, “When Scale reached out about some files I had in my personal drive, I asked if I could just delete them. But Scale asked that I not do anything with them, so I’m still waiting for guidance on how to resolve this. I’ve never used any of them in this role. It sounds like Scale wants to sue me and that’s up to them. But I just wanted to say that there truly was no nefarious intent here. I’m really sorry to my new team at Mercor for having to deal with this.”

    There are scant clues in the suit about the identity of Customer A. The suit does say that if Scale’s rival did win this customer away, it would be a contract “worth millions of dollars to Mercor.”

    Whatever the details of this suit, it does show one thing: Scale is clearly concerned enough about the threat of Mercor to pursue legal action. As TechCrunch previously reported, even with Meta’s multibillion-dollar investment into Scale, TBD Labs — the core unit within Meta tasked with building AI superintelligence — is still using Mercor and other LLM data training service providers.

    Mercor is rising in the LLM training arena because it is known for hiring content specialists, often PhDs, to train LLM data in their areas of expertise.

    In June, Scale announced that Meta was investing $14.3 billion for a 49% stake in Scale and was hiring away its founder. Shortly after that, several of Scale AI’s largest data customers, who are competitors to Meta’s efforts, reportedly cut ties with it.

    Updated with comments on social media from Eugene Ling.

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    Julie Bort

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  • Trump administration agrees to restore health websites and data

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    NEW YORK — Federal officials have agreed to restore health- and science-related webpages and data under to a lawsuit settlement with doctors groups and other organizations who sued.

    The settlement was announced this week by the lead plaintiffs in the case, the Washington State Medical Association.

    Soon after President Donald Trump’s inauguration, federal health officials deleted or removed information on a range of topics including pregnancy risks, opioid-use disorder and the AIDS epidemic. The move was made in reaction to a Trump executive order that told agencies to stop using the term “gender” in federal policies and documents.

    The administration saw it as a move to end the promotion of “gender ideology.” Doctors, scientists and public health advocates saw it as an “egregious example of government overreach,” says Dr. John Bramhall, the organization’s president, said in a statement.

    “This was trusted health information that vanished in a blink of an eye — resources that, among other things, physicians rely on to manage patients’ health conditions and overall care,” Bramhall said.

    The U.S. Department of Health and Human Services has agreed to restore more than 100 websites and resources to the state they were in, said Graham Short, a spokesperson for the Washington State doctors’ group.

    “We expect the sites will be restored in the coming weeks,” Short said in an email.

    The case was filed in federal court in Seattle. The plaintiffs include, among others, the Vermont Medical Society, the Washington State Nurses Association and the International Association of Providers of AIDS Care.

    The defendants included U.S. Health Secretary Robert F. Kennedy Jr. and federal health agencies and officials who work under him.

    Federal officials responded to questions about the settlement with this statement: “HHS remains committed to its mission of removing radical gender and DEI ideology from federal programs, subject to applicable law, to ensure taxpayer dollars deliver meaningful results for the American people.”

    The case is similar to one filed in Washington, D.C., by Doctors for America and others against the government. That lawsuit also sought to force the government to restore health information to the public, and the two cases overlapped somewhat in the websites they targeted, Short said.

    In July, a judge in the Doctors for America case ordered restoration of websites. As of last week, 167 of the websites at issue had been restored and 33 were still under review, according to a court filing.

    ___

    The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

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  • Los Angeles school district settles with parents who sued over distance learning

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    Parents have agreed to settle a lawsuit that alleged the distance learning program used by the Los Angeles Unified School District during the COVID-19 pandemic failed to meet state educational standards and disproportionately harmed Black and Latino students, a lawyer for the families said.

    Attorneys for parents who filed the class-action lawsuit in 2020 said the agreement would require the nation’s second-largest school district to offer at least 45 hours of significant tutoring services a year to more than 100,000 of its most vulnerable students over the next three years in addition to teacher training and mandatory assessments. The goal is to help the district’s most disadvantaged students, the lawyers said.

    The deal must be approved by the court to take effect.

    “For nearly five years, we have fought tirelessly on behalf of LAUSD students and their families to enforce students’ constitutional right to basic educational equality,” Edward Hillenbrand, one of the plaintiffs’ pro bono attorneys, said in a statement on Wednesday.

    A message seeking comment was sent to Los Angeles Unified.

    The agreement ends a five-year court battle over Los Angeles Unified’s distance learning programs during school shutdowns. The case was dismissed in 2021 once schools were reopened but the parents, who have been supported by educational non-profits Parent Revolution and Innovate Public Schools, appealed. A state appeals court reinstated the case two years later.

    The parents argued that the district failed to engage their children online at the same rate as other large California school districts and that state-mandated instructional minutes often lacked actual instruction. They said teachers would sometimes dismiss kids after checking they turned in their work and without going over new material, and complained it was not always possible to connect to the district’s platform.

    In turn, they said their students began lagging behind grade-level standards and grew disinterested in school. The challenges disproportionately affected Black and Latino children, they said, who had lower weekly participation rates online than other students soon after the shutdowns began.

    California schools had a range of pandemic learning models including some that offered hybrid schedules where students toggled between distance and smaller class settings and others that were solely online. Many districts were not allowed to fully reopen schools due to infection rates under the state’s rules.

    Today, Los Angeles Unified has 400,000 students through 12th grade, and more than three-quarters are economically disadvantaged, according to district data.

    Plaintiff Maritza Gonzalez said in the statement that the support is too late for her son, who is now in college, but she is thankful her daughter, who is starting high school, will have access to tutoring.

    “After all the time, effort and years invested in this lawsuit, this victory feels like a step in the right direction,” Gonzalez said.

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  • Survivors of Maine mass shooting and victims’ relatives sue US government alleging negligence

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    Survivors of Maine’s deadliest mass shooting and relatives of victims are suing the federal government, alleging that the U.S. Army could and should have stopped one of its reservists from carrying out what they call “one of the most preventable mass tragedies in American history.”

    Eighteen people were killed in October 2023 when Robert Card opened fire at a bowling alley and a bar and grill. An independent commission appointed by Maine’s governor later concluded that there were numerous opportunities for intervention by both Army officials and civilian law enforcement as Card’s mental health deteriorated. He was found dead by suicide two days after the shootings.

    The lawsuit, filed in federal court on behalf of more than 100 survivors and victims’ family members, accuses the U.S. government of negligence, saying its conduct “directly and proximately caused the mass shooting.” It alleges that Army officials and others “failed to act reasonably, broke the promises they made to Card’s family and their community, violated mandatory polices, procedures and disregarded directives and orders.”

    “By March 2023, the United States and its personnel knew Card was paranoid, delusional, violent, and lacked impulse control. The Army knew he had access to firearms. The Army promised to remove his guns but did not fulfill that promise,” the lawsuit states. “Worse, through its acts and omissions, the Army withheld information and actively misled local law enforcement, thereby preventing others from intervening and separating Card from his weapons.”

    Attorneys plan to provide more details Wednesday at a news conference in Lewiston, not far from where the shootings took place.

    The attorneys began the process of suing the government a little less than a year ago when they filed notices of claim, saying the Army did not act despite being aware of Card’s mental health decline. Card’s mental health spiral led to his hospitalization and left him paranoid, delusional and expressing homicidal ideations, the claim said. He even produced a “hit list” of those he wanted to attack, attorneys have said.

    Family members and fellow reservists said Card had exhibited delusional and paranoid behavior months before the shootings. He was hospitalized by the Army during training in July 2023 in New York, where his unit was training West Point cadets, but Army Reserve officials have acknowledged that no one made sure Card was taking his medication or complying with his follow-up care at home in Bowdoin, Maine.

    The starkest warning came in a September text from a fellow reservist: “I believe he’s going to snap and do a mass shooting.”

    “From the start, the Army disregarded its mandatory policies and procedures, and regulations when dealing with Card,” the lawsuit states. “Despite the serious issues Card presented at the company or battalion level, they were not reported up the chain of command to senior military officials with the knowledge, experience, and resources to address them. Instead, low-ranking, part-time personnel mis-managed the risks, resulting in disastrous consequences.”

    Army officials conducted their own investigation after the shootings that Lt. Gen. Jody Daniels, then the chief of the Army Reserve, said found “a series of failures by unit leadership.” Three Army Reserve leaders were disciplined for dereliction of duty, according to the report. When the governor’s commission released its final report last August, the Army issued a statement saying it was “committed to reviewing the findings and implementing sound changes to prevent tragedies like this from recurring.”

    The Lewiston shootings led to new guns laws in Maine, a state with a long tradition of hunting and gun ownership. The laws prompted legal action on the part of gun rights advocates in the state and remain a contentious topic nearly two years after the shootings.

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  • Raw milk debates are turning sour in Florida

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    In the fall of 2024, I predicted that America might be on the brink of having its “raw milk moment” given now Secretary of Health and Human Services Robert F. Kennedy Jr.’s political elevation. Since then, hardly a week has passed without unpasteurized milk making headlines across the country. A recent bacterial outbreak in Florida has now heightened the controversy and further solidified raw milk’s central role in America’s broiling culture wars.

    The Florida Department of Health (DOH) issued a press release in early August detailing a campylobacter and E. coli outbreak in the Sunshine State. Officials alerted that “there have been 21 cases since January 24, 2025, including six children under the age of 10, and seven hospitalizations linked to consumption of raw milk.” The DOH explicitly identified Keely Farms Dairy, a small family farm, as the source of the outbreak.

    Weeks later, a Florida woman, represented by a self-described “national food poisoning law firm,” filed suit against Keely Farms, alleging that its raw milk caused her two-year-old son to contract a bacterial infection and fall ill. The woman further alleges that she fell ill herself and developed sepsis, which eventually led to the loss of her pregnancy.

    The details from the lawsuit are heartbreaking, but the more we learn about the situation surrounding Keely Farms, the more bizarre the story becomes. Despite DOH’s definitive declaration that Keely Farms was the source of the bacterial outbreak, it was later found that the agency had reached this conclusion despite not conducting a single test at the farm, nor alerting the farm that it was under investigation. In a Facebook post, Keely Farms said that the department’s press release “blindsided” them. (The DOH’s press release stated that it would “continue working with Keely Farms Dairy,” insinuating that the relevant parties had been working together throughout.)

    Confusing things further, Keely Farms was recently inspected by the Florida Department of Agriculture. “We passed, as always,” Keely Farms posted.

    Selling raw milk for human consumption is illegal in Florida. As a result, milk that has not been pasteurized—the process of heating the liquid to a specific temperature for five to 30 seconds to kill harmful bacteria—can only be sold for livestock feed. Keely Farms’ raw milk was appropriately labeled as “not for human consumption,” meaning that the 21 Floridians who allegedly drank the farm’s milk (and those who also gave it to their children) chose to do so despite this warning.

    It’s unclear how the current litigation involving Keely Farms will ultimately play out, although it’s likely that more follow-on suits will be filed, using the DOH’s press release as evidentiary fodder. 

    Politico recently noted that raw milk has gone from “the darling of the organic liberals, deserving of sympathetic coverage…to the conservative culture war signal that is a sweetheart of deep-red state legislatures.” This is on display in Florida. Despite the DOH targeting Keely Farms for its raw milk, Florida’s Surgeon General Joseph A. Ladapo—an appointee of Republican Gov. Ron DeSantis and the head of the DOH—recently expressed support for human consumption of raw milk in a social media post. 

    On the other hand, Florida’s agriculture commissioner, who was endorsed by President Donald Trump, has encouraged Floridians to only drink pasteurized milk, citing the dangers of raw milk. This means that the head of the Florida agency that targeted Keely Farms’ raw milk products is unexpectedly pro-raw milk, while the head of the state agency that inspected and greenlighted Keely Farms’ operations is against raw milk.

    This confusion highlights how raw milk has become a political flashpoint. The state health agency blamed Keely Farms while skipping basic investigative steps, the agriculture department cleared the farm, and their leaders publicly contradicted their own agencies.

    When policy decisions are filtered through the lens of culture wars, the result is not clarity or safety but a muddle of mixed signals. Floridians are left unsure whether raw milk is a health risk, a personal freedom, or just another pawn in America’s endless red vs. blue standoff.

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    C. Jarrett Dieterle

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  • Chester County couple who restore comic books revive business after winning $10 million defamation lawsuit

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    Just over a year after winning a defamation lawsuit, comic book restorers Emily and Matt Meyers have revived their business – putting five of the rarest and most valuable comics they’ve ever worked on up for sale. 

    The auction collection includes the first appearances of Superman, Batman and Captain America, books that date back to the Golden Era of comics in the 1930s and 1940s. From now until mid-September, prospective buyers can place bids on each book. The unrestored versions of these can be worth millions.


    MORE: Trailer for Bradley Cooper’s third film as director is released ahead of festival premiere


    “These are among the most beautiful books we’ve ever restored,” Emily said.

    Nearly 10 years ago, the couple from Paoli, Chester County, began working with an undisclosed Toronto-based collector, taking low-quality rare books and using a complex process to fix faded colors and bring the condition back to as close to its original state as possible.

    The restoration projects for the five comics that are up for auction was completed in 2018, but a contentious eight-year legal battle with Certified Guaranty Co., the world’s largest grading company for collectables, prevented the couple and consignor from bringing the books to market. In the lawsuit, the Meyers were accused of making fakes, leading to the couple suing the company for defamation.

    “I think there was a lot of misinformation put out about our work,” Emily said. “… Eventually we just stopped doing it because it ate into the profit margin so much.”

    Last summer, a Philadelphia jury ruled that Certified Guaranty Co. must pay the Meyers $10 million for defaming their business. Some of the comics that are up for sale came straight from the “evidence bag” of the long-running court cases, Emily said.

    In addition to the five books restored by the Meyers, the most for a single auction in their career, the sale also features nearly 200 unrestored works from the collector, ranging in time period and stories.

    “This collection represents a veritable time capsule of new characters and stories in comics history from the Golden Age up to now,” said Vincent Zurzolo, president and co-founder of ComicConnect. “It was incredibly exciting to see a collection like this, acquired over years of careful creation.” 

    Thanks to the meticulous work done by the Meyers, Zurzolo estimates the five books could sell for millions.

    “I believe, in no uncertain terms, that they are the best restoration experts in the country for comic books – possibly in the world,” Zurzolo said. “I have seen many restoration experts with varying degree of skills and specialties, but I’ve never seen anybody with the skill, talent, technique and artistry that Emily and Matt possess. These are some of the best-looking restored copies of Golden Age (comics) that I’ve seen in my nearly 40-year career in comics.”

    Emily attributes their success to crippling perfectionism, using microscopes to be as accurate and precise as possible when handling vintage works. Even with methodical advances at her disposal, Emily said she’d be surprised if a single project took less than two months to complete. 

    “I know how much people treasure these books and I want to give them that same amount of love, time and dedication so that the book is just loved from start to finish,” she said. “If I have to redo something a hundred times, I will do it.” 

    So far, the couple’s most valuable project was a restored “Action Comics No. 1,” which features the first appearance of Superman. That comic sold for $550,000, but a different copy of the 1938 classic is part of the collection being auctioned now, so the Meyers might soon have a new personal record.

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    Molly McVety

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  • Judge rejects Cuomo’s attempt to make texts in harassment lawsuit public

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    ALBANY, N.Y. — A judge rejected former New York Gov. Andrew Cuomo’s attempt to prolong a taxpayer-funded court battle with a woman who accused him of sexual assault, saying it wasn’t in the public’s interest to keep litigating for the purpose of repairing the Democrat’s reputation as he runs for mayor.

    “Cuomo has not advanced any viable argument for why the taxpayers of this state should continue to foot the bill for his continued use of civil litigation discovery devices to further his efforts to resurrect his public image,” state Supreme Court Justice Denise Hartman wrote in a decision posted online Monday.

    The decision comes more than a month after New York agreed to pay $450,000 to settle a lawsuit from Brittany Commisso, an ex-aide who alleged Cuomo sexually harassed and groped her while he was in office. Cuomo, who has denied the allegations, resigned as governor in 2021 after a report from the state attorney general determined that he had sexually harassed at least 11 women.

    Cuomo, a co-defendant with the state, opposed Commisso’s request to discontinue the lawsuit. Relatedly, he sought to make public text messages produced under discovery he claims refute Commisso’s allegations. Cuomo attorney Rita Glavin had told a judge that ending the case is a matter of “enormous public interest” as Cuomo runs for mayor.

    Hartman allowed Commisso to drop the civil suit and denied Cuomo’s motion on the texts.

    Cuomo is running for mayor as a independent after losing the Democratic primary to Zohran Mamdani by more than 12 percentage points.

    With the race heating up this summer, Republican candidate Curtis Sliwa has needled Cuomo over the sexual harassment allegations. And incumbent Mayor Eric Adams, who also is running as an independent, recently placed whistles on reporters’ chairs at a news conference. Adams explained they were for female reporters interviewing Cuomo, in case they needed to call for help.

    A spokesman for Cuomo said Tuesday that the public deserves to see what is in the texts.

    “Governor Cuomo will continue to fight for the release of all the evidence because it shows he didn’t sexually harass anyone and further discredits the AG’s political report. Release the evidence and let the public decide,” Rich Azzopardi said in a written statement.

    Commisso filed her lawsuit in late 2023, just before the expiration of the Adult Survivors Act, a law that created a yearlong suspension of the usual time limit to sue over an alleged sexual assault. She later filed a criminal complaint accusing Cuomo of groping her but a local district attorney declined to prosecute, citing lack of sufficient evidence.

    The Associated Press typically doesn’t identify people who say they have been sexually assaulted unless they decide to tell their stories publicly, as Commisso has done.

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  • Embattled Fed Gov. Lisa Cook says she’ll sue Trump to keep her job

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    WASHINGTON — Federal Reserve Gov. Lisa Cook will sue President Donald Trump’s administration to try to prevent him from firing her, her lawyer said Tuesday.

    “President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” said Abbe Lowell, a longtime Washington lawyer who has represented figures from both major political parties. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action.”

    The case is likely to end up at the Supreme Court and could more clearly define the limits of the president’s legal authority over the traditionally independent institution. The Fed exercises expansive power over the U.S. economy by adjusting a short-term interest rate that can influence broader borrowing costs for things like mortgages, auto loans, and business loans. Trump, a Republican, has repeatedly demanded that Chair Jerome Powell and the Fed’s rate-setting committee cut its rate to boost the economy and reduce interest payments on the government’s $37 trillion debt pile.

    If Trump succeeds in removing Cook from the Fed’s board of governors, it could erode the Fed’s political independence, which is considered critical to its ability to fight inflation because it enables the Fed to take unpopular steps like raising interest rates. A less-independent Fed could leave Americans paying higher interest rates, because investors would demand a higher yield to own bonds to offset potentially greater inflation in the future, pushing up borrowing costs throughout the economy.

    Trump appointed two members of the board, Christopher Waller and Michelle Bowman, in his first term and has named Steven Miran, a top White House economist, to replace Gov. Adriana Kugler, who stepped down unexpectedly Aug. 1. If Miran’s nomination is approved by the Senate and Trump is able to replace Cook, he would have a 4-3 majority on the Fed’s board, which votes on all interest rate decisions, along with five of the Fed’s 12 regional bank presidents.

    Legal experts say the Republican president’s claim that he can fire Cook, who was appointed by Democratic President Joe Biden in 2022, is on shaky ground. But it’s an unprecedented move that hasn’t played out in the courts before, and the Supreme Court this year has been much more willing to let the president remove agency officials than in the past.

    “It’s an illegal firing, but the president’s going to argue, ‘The Constitution lets me do it,’” said Lev Menand, a law professor at Columbia University and author of a book about the Fed. “And that argument’s worked in a few other cases so far this year.”

    Menand said the Supreme Court construes the Constitution’s meaning, and “it can make new constitutional law in this case.”

    Bill Pulte, a Trump appointee to the agency that regulates mortgage giants Fannie Mae and Freddie Mac, made the accusations last week. Pulte alleged that Cook had claimed two primary residences — in Ann Arbor, Michigan, and in Atlanta — in 2021 to get better mortgage terms. Mortgage rates are often higher on second homes or those bought to rent.

    The most likely next step for Cook is to seek an injunction against Trump’s order that would allow her to continue her work as a governor. But the situation puts the Fed in a difficult position.

    “They have their own legal obligation to follow the law,” Menand said. “And that does not mean do whatever the president says. … The Fed is under an independent duty to reach its own conclusions about the legality of Lisa Cook’s removal.”

    The Fed has declined to comment on Trump’s effort to fire Cook.

    Trump said in a letter posted on his Truth Social platform late Monday that he was removing Cook effective immediately because of allegations she committed mortgage fraud.

    Cook said Monday night that she would not step down. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in an emailed statement. “I will not resign.”

    The courts have allowed the Trump administration to remove commissioners at the National Labor Relations Board, the Merit System Protection Board and other independent agencies. Yet Cook’s case is different.

    Those dismissals were based on the idea that the president needs no reason to remove agency heads because they exercise executive power on his behalf, the Supreme Court wrote in an unsigned order in May.

    In that same order, the court suggested that Trump did not have the same freedom at the Fed, which the court called a “uniquely structured, quasi-private entity.”

    The law that governs the central bank, the Federal Reserve Act, includes a provision allowing for the removal of Fed governors “for cause.”

    “For cause” is typically interpreted to mean malfeasance or dereliction of duty by an official while in office, not something done before that person is appointed, Menand said.

    To establish a “for cause” firing also requires a finding of fact, said Scott Alvarez, the Fed’s former general counsel and now adjunct professor at Georgetown Law.

    “We know there’s allegations by Bill Pulte, but Lisa has not been able to respond yet,” Alvarez said. “So we don’t know if they’re true. Allegations are not cause.’’

    Lowell said Monday night that Trump’s “reflex to bully is flawed and his demands lack any proper process, basis or legal authority,” adding, “We will take whatever actions are needed to prevent his attempted illegal action.”

    Cook is the first Black woman to serve as a governor. She was a Marshall Scholar and received degrees from Oxford University and Spelman College, and she has taught at Michigan State University and Harvard University’s Kennedy School of Government.

    ___

    Associated Press Writers Mark Sherman and Paul Wiseman contributed to this report.

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  • Elon Musk accuses Apple and OpenAI of stifling AI competition in antitrust lawsuit

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    Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.

    The 61-page complaint filed in Texas federal court follows through on a threat that Musk made two weeks ago when he accused Apple of unfairly favoring OpenAI and ChatGPT in the iPhone’s app store rankings for top AI apps.

    Musk’s post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit — filed by xAI and another of his corporate entities, X Corp. — in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics.

    The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone.

    “This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence,” the lawsuit asserts.

    The complaint portrays Apple as a company that views AI as an “existential threat” to its future success, prompting it to collude with OpenAI in an attempt to protect the iPhone franchise that has long been its biggest moneymaker.

    Some of the allegations accusing Apple of trying to shield the iPhone from do-everything “super apps,” such as the one Musk has long been trying to create with X, echo an antitrust lawsuit filed against Apple last year by the U.S. Department of Justice.

    The complaint casts OpenAI as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another federal lawsuit that Musk filed last year, alleging OpenAI had betrayed its founding mission to serve as a nonprofit research lab for the public good.

    OpenAI has countered with a lawsuit against Musk accusing him of harassment — an allegation that the company cited in its response to Monday’s antitrust lawsuit. “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment,” OpenAI said in a statement.

    Apple didn’t immediately respond to a request for comment.

    The crux of the lawsuit revolves around Apple’s decision to use ChatGPT as an AI-powered “answer engine” on the iPhone when the built-in technology on its device couldn’t satisfy user needs. The partnership announced last year was part of Apple’s late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still hasn’t been able to deliver on all its promises.

    Apple’s own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing OpenAI with invaluable data that’s unavailable to Grok and other would-be competitors because it’s currently an exclusive partnership.

    The alliance has provided Apple with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone’s app store, the lawsuit alleges. Other AI apps from DeekSeek and Perplexity have periodically reached the top spot in the Apple app store’s AI rankings in at least some parts of the world since Apple announced its deal with ChatGPT.

    The lawsuit doesn’t mention the potential threat that ChatGPT could also pose to Apple and the iPhone’s future popularity. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone.

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