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Microsoft

Microsoft/Activision Blizzard Antitrust Hearings Reveal Internal Emails and Badly-Redacted Documents (venturebeat.com) 24

VentureBeat is enjoying "secrets that spilled out" in the Microsoft/Activision Blizzard antitrust hearings. "Whether the Federal Trade Commission wins its antitrust case or not, its attempt to stop Microsoft's $68.7 billion acquisition of Activision Blizzard has revealed a trove of new data for everyone." The FTC has argued in a federal court that the merger would harm competition in the game industry and be bad for consumers, as Microsoft could pull Activision Blizzard's games like Call of Duty away from the Sony PlayStation, despite Microsoft's stated intention of not doing so for at least 10 years. In this case, the FTC might not have had an obvious winning hand, as the industry has an odd situation. Microsoft has the highest value ($104 billion in cash alone, versus $13.4 billion for Sony) at $2.49 trillion as a company compared to $115 billion for Sony, and yet it is in third place behind Sony and Nintendo.

Hence, there's some significance to Microsoft's Xbox first-party head, Matt Booty, sending an ill-advised email in 2019 saying Microsoft "has the ability to spend Sony out of business." That was long before the deal was announced 17 months ago, but it could be used as a sign of intent. Microsoft said it never pursued this strategy. While competing fiercely is fine, using monopoly power to drive a rival out of business so you can raise prices later is a no-no...

Did the FTC prove its case? I can't say just yet. Microsoft makes a decent point in saying all the regulators of the world except the U.S. and the United Kingdom have approved the deal. But I hope to have more reasons to binge on popcorn.

In January Ars Technica noted Microsoft's contract set July 18th as the deadline for closing the deal — or else paying a $3 billion "breakup fee". The Verge spotted that some of Sony's documents were poorly redacted. While looking at the lines that were crossed out with black pens, they could see that The Last of Us Part 2 cost the company $220 million to make, with 200 people working on it, while Horizon Forbidden West cost $212 million to make, with 300 working on it for over five years. Both games made considerably more money... In the unSharpied documents, Sony also revealed that a million Call of Duty players spent 100% of their time playing Call of Duty in 2021. It also said that Call of Duty generated $800 million for PlayStation in 2021 alone in the U.S. and perhaps $1.5 billion globally. It also looks like Sony's exclusive marketing deal with Activision for Call of Duty will expire in late 2023. Sony went on to say half of PS5 owners also have a Nintendo Switch.

Microsoft also failed to redact some of its acquisition targets. Those were later marked up, but not before Axios noted that the list included Thunderful, Supergiant Games, Niantic, Playrix, Zynga, Bungie, Square Enix, Warner Bros., Sega, IO Interactive and Scopely... Among the secrets revealed among the companies Microsoft acquired: Microsoft bought Ninja Theory, maker of Hellblade: Senua's Sacrifice, for $117 million.

Thanks to Slashdot reader ole_timer for sharing the news.
The Courts

US Supreme Court Rejects US Student Loan Relief. President Biden Responds (cnn.com) 365

After a three-year pause, U.S. student loan repayments are set to resume on October 1st — just three months from today. But CNN reports that yesterday America's Supreme Court "struck down President Joe Biden's student loan forgiveness program, blocking millions of borrowers from receiving up to $20,000 in federal student debt relief."

"The court's 6 to 3 conservative majority held that the secretary of education did not have that authority under existing law," writes the Washington Post. The Guardian quotes President Biden's response: "I think the court misinterpreted the constitution."

CNN reports: No debt had been canceled, even though the Biden administration had received about 26 million applications for relief last year and approved 16 million of them. The forgiveness program, estimated to cost $400 billion, would have fulfilled a campaign promise of Biden's to cancel some student loan debt. But a group of Republican-led states and other conservative groups took the administration to court over the program, claiming that the executive branch does not have the power to so broadly cancel student debt in the proposed manner.

Critics also point out that the one-time student loan forgiveness program does nothing to address the cost of college for future students and could even lead to an increase in tuition. Some Democrats joined Republicans in voting for a bill to block the program. Both the Senate and the House passed the measure, but Biden vetoed the bill in early June...

The administration estimated that roughly 20 million borrowers would have seen their entire federal student loan balance wiped away.

UPDATE: CNBC reports the administration hasn't given up: President Joe Biden suggested on Friday that he was looking for another avenue to deliver student debt relief after the Supreme Court rejected his forgiveness plan.

"Today's decision has closed one path," Biden said during a briefing Friday. "Now we're going to pursue another."

A statement from the White House also points to other relief policies for students, noting for example that now "no one with an undergraduate loan has to pay more than 5 percent of their discretionary income." CNN reports: New rules set to take effect in July could broaden eligibility for the Public Service Loan Forgiveness program, which is aimed at helping government and nonprofit workers. And a new income-driven repayment plan proposal is meant to lower eligible borrowers' monthly payments and reduce the amount they pay back over time. The administration said this plan was finalized Friday and borrowers will be able to take advantage of it this summer, before loan payments are due. The Department of Education has also made it easier for borrowers who were misled by their for-profit college to apply for student loan forgiveness under a program known as borrower defense to repayment, as well as for those who are permanently disabled. Altogether, the Biden administration has approved more than $66 billion in targeted loan relief to nearly 2.2 million borrowers....

[T]he Biden administration said Friday that it will provide a 12-month on-ramp period for borrowers reentering payment... Borrowers will not be reported to credit bureaus, be considered in default or referred to collection agencies for late, missed or partial payments during the on-ramp period, according to a fact sheet from the White House.

Cloud

Microsoft's Cloud Server Business in 2022 Was Less Than Half of AWS, New Document Reveals (theinformation.com) 30

For years Microsoft has kept a lid on details about the true size of its Azure cloud server rental business, making it impossible for investors to know how Microsoft's cloud operations unit stacked up against industry leader Amazon Web Services. But this week, thanks to antitrust regulators, the world got a peek under the lid. The Information: Azure generated half the revenue of its primary rival, Amazon Web Services, in the 12 months ended June 2022, according to internal documents briefly posted by federal antitrust regulators on a court website this week. That means Azure's share of the market was several percentage points smaller than some analyst firms had estimated. That could change investor perceptions of Microsoft's success in cloud, suggesting it hasn't done as well as widely believed. The document posted online showed that in June of last year, Microsoft CEO Satya Nadella told the company's board of directors that the cloud server business within Azure would generate $34 billion in revenue in the 12 months ending June that year. That number is directly comparable to the $72 billion that AWS reported in the same period, unlike the cloud revenue number that Microsoft typically reports, which includes subscription software.
The Courts

Police Need a Wiretap To Eavesdrop On Your Facebook Posts, Court Rules (newjerseymonitor.com) 29

In a landmark ruling (PDF) on Thursday, the New Jersey Supreme Court sided with Facebook in a major court decision that requires prosecutors to get a wiretap order if they want to eavesdrop on social media accounts without adequate evidence of a crime. New Jersey Monitor reports: In a reversal of lower court decisions, the high court ruled against authorities who argued a warrant is sufficient to obtain nearly real-time release of such communications. That argument is unsupported by federal or state statute, the court said, adding that allowing such releases would effectively neuter New Jersey's wiretap law.

In separate cases focused on two men under investigation for drug offenses, authorities obtained a communications data warrant to force Facebook to disclose social media postings -- within 15 minutes of their creation -- made by the pair over a 30-day span. The state contended such releases, which Facebook said were as close to real-time as technology allows, could be made without meeting the higher bar for a wiretap order because by the time Facebook provided them, they would already have been transmitted and electronically stored.

But Thursday's decision says allowing such releases would make the state's wiretap statute obsolete because "law enforcement today would never need to apply for a wiretap order to obtain future electronic communications from Facebook users' accounts on an ongoing basis." Authorities must show probable cause to obtain a warrant. To obtain a wiretap order, they must also demonstrate that other investigatory methods would fail -- because they are too dangerous, for example -- according to criminal defense lawyer Brian Neary. Neary argued on behalf of the New Jersey State Bar Association, which joined the case as a friend of the court.
"It's great to see the New Jersey Supreme Court make clear that whenever the government seeks ongoing access to our private conversations, it must meet the heightened protections required under state law and the federal and state constitutions," said Jennifer Granick, surveillance and cybersecurity counsel with the American Civil Liberties Union.
Sony

Sony's Confidential PlayStation Secrets Just Spilled Because of a Sharpie (theverge.com) 35

Sony highly confidential information about its PlayStation business has just been revealed by mistake. As part of the FTC v. Microsoft hearing, Sony supplied a document from PlayStation chief Jim Ryan that includes redacted details on the margins Sony shares with publishers, its Call of Duty revenues, and even the cost of developing some of its games. From a report: It looks like someone redacted the documents with a black Sharpie -- but when you scan them in, it's easy to see some of the redactions. Oops. The court has scrambled to remove the document, but the damage is done; reporters and Sony's competition have already downloaded all the documents while they were in the public domain. Among other things, the document shows that Horizon Forbidden West apparently cost $212 million over five years with 300 employees, and The Last of Us Part II cost $220 million with around 200 employees.

It's not just how much games cost to make that's been revealed here, either. Sony says 1 million PlayStation gamers play nothing but Call of Duty. My colleague Sean Hollister has analyzed the document, and it appears to show: "In 2021, over [14?] million users (by device) spent 30 percent or more of their time playing Call of Duty, over 6 million users spent more than 70% of their time on Call of Duty, and about 1 million users spent 100% of their gaming time on Call of Duty. In 2021, Call of Duty players spent an average of [116?] hours per year playing Call of Duty. Call of Duty players spending more than 70 percent of their time on Call of Duty spent an average of 296 hours on the franchise."

Businesses

Activision Will Be Jilted if Microsoft Deal Blocked, CEO Kotick Says (bloomberg.com) 26

Activision Blizzard will likely abandon a $69 billion takeover bid by Microsoft if the US Federal Trade Commission wins a ruling pausing the deal, the game maker's chief executive officer told a judge. From a report: Microsoft called Activision CEO Bobby Kotick to testify in San Francisco federal court Wednesday to reinforce its claim that the acquisition won't hurt competition in the markets for console and subscription-based games. US District Judge Jacqueline Scott Corley must decide whether to halt the deal -- which has a July 18 closure deadline -- while the FTC's legal challenge to the transaction plays out. "My board's view is if the preliminary injunction is granted, we don't see how this will continue," Kotick said.
Education

Cleaner Accidentally Ruins Decades of US College's Research By Turning Off Freezer (theguardian.com) 224

An anonymous reader quotes a report from The Guardian: A cleaner at a college in New York state accidentally destroyed decades of research by turning off a freezer in order to mute "annoying alarm" sounds. The Rensselaer Polytechnic Institute (RPI), in Troy, is suing the cleaner's employer, alleging improper training. According to a lawsuit filed in the New York supreme court in Rensselaer county earlier this month, the university is seeking more than $1m in damages, the Times Union newspaper reported. "People's behavior and negligence caused all this," Michael Ginsberg, an attorney for RPI, told the Times Union. "Unfortunately, they wiped out 25 years of research."

The cleaner, who is not named in the lawsuit, was employed by Daigle Cleaning Systems and worked at RPI for several months in 2020, when the incident occurred. The lab freezer contained several cultures that were part of a research project on photosynthesis headed by the biology and chemistry professor KV Lakshmi, the BBC reported. The cultures were usually stored at -112F (-80C). On September 14, 2020, days before the freezer was unplugged, an alarm indicated that the freezer temperature was fluctuating, the lawsuit says, adding that the specimens in the freezer were still viable at that point. Covid restrictions at the time meant repairs could not be made for a week. Lab officials took precautions to preserve the cultures and explain the alarm, posting a sign explaining where the noise was coming from and how to mute it. Lakshmi also installed a lock box on the freezer's outlet and socket to stop anyone unplugging it.

But on September 17, the Daigle Cleaning Systems employee turned off the circuit breaker, causing the temperature of the freezer to rise. The next day, lab officials discovered the samples were unsalvageable. "[A] majority of specimens were compromised, destroyed and rendered unsalvageable demolishing more than 20 years of research," the lawsuit says. In an interview with university officials, the cleaner said he thought he was turning the circuit breaker on after hearing the alarms. "At the end of the interview, he still did not appear to believe he had done anything wrong but was just trying to help," the lawsuit says, saying the cleaner made an "error" when reading the panel.

The Courts

Supreme Court Guts Protections for Cyberstalking Victims (fastcompany.com) 147

The Supreme Court ruled Tuesday that in order to find someone guilty of making a "true threat" courts must first determine that the person recklessly disregarded the fact that their words might be perceived as threats. From a report: Experts fear the decision will create new hurdles for victims of cyberstalking by requiring them to first prove that their stalkers understand the consequences of their actions. "The Supreme Court has just decreed that stalking is free speech protected by the First Amendment if the stalker genuinely believes his actions are non-threatening," tweeted Mary Anne Franks, a professor at George Washington Law School and president of the nonprofit Cyber Civil Rights Initiative. "That is, the more deluded the stalker, the more protected the stalking."

The case, Counterman v. Colorado, concerns a man named Billy Raymond Counterman, who was convicted under a Colorado anti-stalking law, after he sent a barrage of threatening Facebook messages to a woman he'd never met. The Colorado law didn't require the court to consider Counterman's mental state when he sent the messages. It only had to consider his behavior and how it was objectively received, that is, whether he repeatedly contacted, followed, or surveilled his target in a way that would cause a "reasonable person" distress. Counterman was found guilty under that statute, but he appealed his conviction, arguing that his statements were protected by the First Amendment and did not constitute "true threats," a category of speech that falls outside the bounds of the First Amendment, because it wasn't his intention to threaten his target. In its decision, the Supreme Court overwhelmingly sided with Counterman.

News

Pickleball Injuries May Cost Americans Nearly $400 Million This Year, According To UBS (bloomberg.com) 121

An anonymous reader shares a report: Earlier this month, shares of big health insurance companies fell after UnitedHealth Group warned that healthcare utilization rates were up. At a conference the company had said that it was seeing a higher-than-expected pace of hip replacements, knee surgeries and other elective procedures. In a new note out Monday, UBS Group AG analysts led by Andrew Mok offer a surprising theory about one factor that could be driving a higher pace of injuries: pickleball.

As everyone knows, the racket game has become a booming (and sometimes controversial) sport and business. And per UBS, not only are "Picklers" competing with the public for use of park and court space, they're also driving up healthcare capacity utilization and costs. The firm estimates between $250-500 million in costs attributable to pickle injuries in 2023. So how does it arrive at this number? First, it establishes that growth has been absolutely mammoth, with huge and accelerating numbers of participants. This year is expected to see a 150% jump in players, to 22.3 million. Of this 22.3 million, UBS estimates that seniors make about a third of "core players" or those who play it at least eight times a year. Pickleball players also have incomes that tend to skew high (with almost half having income of over $100K per year.)

China

Indictment Details Plan To Steal Samsung Secrets For Foxconn China Project (reuters.com) 5

An anonymous reader quotes a report from Reuters: When former Samsung executive Choi Jinseog won a contract with Taiwan's Foxconn in 2018, he tapped his former employer's supplier network to steal secrets to help his new client set up a chip factory in China, a sealed indictment by South Korean prosecutors alleges. Prosecutors announced the indictment on June 12, saying the theft caused more than $200 million in damages to Samsung Electronics, based on the estimated costs Samsung spent to develop the stolen data. The announcement did not name Choi and gave only limited details, although some media subsequently identified Choi and his links with Foxconn. The unreleased 18-page indictment, reviewed by Reuters, provides details in the case against Choi, including how he is alleged to have stolen Samsung's trade secrets and details about the planned Foxconn plant.

Choi, who has been detained in jail since late May, denied all the charges through his lawyer, Kim Pilsung. Choi's Singapore-based consultancy Jin Semiconductor won the contract with Foxconn around August 2018, according to the indictment. Within months, Choi had poached "a large number" of employees from Samsung and its affiliates and illegally obtained secret information related to building a chip factory from two contractors, prosecutors allege. Jin Semiconductor illegally used confidential information involving semiconductor cleanroom management obtained from Cho Young-sik who worked at one of the contractors, Samoo Architects & Engineers, the indictment alleges. Clean rooms are manufacturing facilities where the enclosed environment is engineered to remove dust and other particles that can damage highly sensitive chips. Samoo had participated in the 2012 construction of Samsung's chip plant in Xian, China. Prosecutors allege Choi's company also illegally obtained blueprints of Samsung's China plant from Chung Chan-yup, an employee at HanmiGlobal, which supervised its construction and floor layouts involving the chip manufacturing process. They have yet to establish how the information on floor layout was obtained, according to the indictment.

Choi signed a preliminary consulting contract in around 2018 with Foxconn to build the chip factory potentially in Xian, his lawyer said. However, Foxconn ended the contract just a year later and only paid salaries related to the project, the lawyer said. He declined to comment on why Foxconn ended the contract or to provide further details, citing the sensitivity of the matter. The person with direct knowledge of the case said prosecutors found Foxconn had agreed to provide 8 trillion won ($6 billion) to build the factory, and Foxconn also paid several million dollars to Choi's company every month until it pulled out of the contract for reasons the indictment did not disclose. Jin Semiconductor's financial statement in 2018 said it entered into an arrangement with "a major customer" for the provision of qualified manpower in the next five years. The customer paid an advance of $17,994,217 to the company, according to the statement. Choi's lawyer said his client may be a scapegoat in a campaign by the South Korean government, caught in a rivalry between China and the United States, seeking seek to slow China's progress in chip manufacturing. [...] Choi is charged along with five other former and current Jin Semiconductor employees and a Samsung contractor employee. Trial is set to begin on July 12, court records show.

United States

Supreme Court Rejects Lawsuit Accusing Google of Stealing Millions of Song Lyrics (bloomberg.com) 35

The US Supreme Court refused to revive a lawsuit by music website Genius Media accusing Alphabet's Google of stealing millions of song lyrics. From a report: The justices left in place a ruling that tossed out the suit, which accused Google of violating a contract with Genius by using its song lyrics in search results without attribution. It's the latest victory at the Supreme Court for Google, which earlier this year won a battle over whether its video-streaming platform YouTube can be held liable for hosting terrorist videos.

There are deep disagreements over how copyright laws apply to online speech and aggregation. The lower court said Genius does not own any of the copyrights to its lyrics -- instead, those are held by the songwriters and publishers. Genius claimed that Google violated its contract by scraping lyrics and boosting them in Google Search results without any attribution. Genius, which claimed the saga caused millions of dollars in losses for the website, initially sued Google in 2019. In order to drum up attention and prove its case, Genius said it used a secret code spelling out the word "red-handed" to prove Google was stealing its lyrics. "We appreciate the court's decision, agreeing with the Solicitor General and multiple lower courts that Genius' claims have no merit," Google spokesman Jose Castaneda said Monday. "We license lyrics on Google Search from third parties, and we do not crawl or scrape websites to source lyrics."

The Courts

Two Lawyers Fined For Submitting Fake Court Citations From ChatGPT 40

An anonymous reader quotes a report from The Guardian: A US judge has fined two lawyers and a law firm $5,000 after fake citations generated by ChatGPT were submitted in a court filing. A district judge in Manhattan ordered Steven Schwartz, Peter LoDuca and their law firm Levidow, Levidow & Oberman to pay the fine after fictitious legal research was used in an aviation injury claim. Schwartz had admitted that ChatGPT, a chatbot that churns out plausible text responses to human prompts, invented six cases he referred to in a legal brief in a case against the Colombian airline Avianca.

The judge P Kevin Castel said in a written opinion there was nothing "inherently improper" about using artificial intelligence for assisting in legal work, but lawyers had to ensure their filings were accurate. "Technological advances are commonplace and there is nothing inherently improper about using a reliable artificial intelligence tool for assistance," Castel wrote. "But existing rules impose a gatekeeping role on attorneys to ensure the accuracy of their filings." The judge said the lawyers and their firm "abandoned their responsibilities when they submitted nonexistent judicial opinions with fake quotes and citations created by the artificial intelligence tool ChatGPT, then continued to stand by the fake opinions after judicial orders called their existence into question."
Levidow, Levidow & Oberman said in a statement on Thursday that its lawyers "respectfully" disagreed with the court that they had acted in bad faith. "We made a good-faith mistake in failing to believe that a piece of technology could be making up cases out of whole cloth," it said.
The Courts

Coinbase Wins at Supreme Court as Ruling Reinforces Arbitration (bloomberg.com) 65

The US Supreme Court sided with a Coinbase unit in a ruling that reinforces the ability of companies to channel customer and employee disputes into arbitration. From a report: The justices, voting 5-4, ruled that lawsuits filed in federal court must be put on hold while a defendant presses an appeal that would send the case to arbitration. Writing for the court, Justice Brett Kavanaugh said allowing district courts to move forward as the appeal is ongoing would reduce the benefits of arbitration. "If the district court could move forward with pre-trial and trial proceedings while the appeal on arbitrability was ongoing, then many of the asserted benefits of arbitration (efficiency, less expense, less intrusive discovery, and the like) would be irretrievably lost," Kavanaugh wrote. Business groups rallied behind Coinbase in the case, saying that letting litigation go forward would impose unnecessary costs. Consumer advocates said judges should have the discretion to decide which claims should proceed during appeal, as courts do with other areas of the law. Coinbase is battling claims by Abraham Bielski, who said the crypto company should compensate him for $31,000 he lost after he gave a scammer remote access to his account. In a second suit that was before the high court, Coinbase is accused of holding a $1.2 million Dogecoin sweepstakes without adequately disclosing that entrants didn't have to buy or sell the cryptocurrency.
Microsoft

FTC Argues Microsoft's Deal To Buy Activision Should Be Paused (reuters.com) 21

The U.S. Federal Trade Commission on Thursday argued in federal court for a preliminary injunction to temporarily block Microsoft's acquisition of videogame maker Activision Blizzard, which would stop the deal from closing before the government's case against it is heard by an administrative judge. From a report: "If this deal is completed, the combined company ... is likely to have the ability, an incentive, to harm competition in various markets related to consoles, subscription services and the cloud (for gaming)," FTC lawyer James Weingarten said in the government's opening arguments in what is expected to be a five-day evidentiary hearing.

The FTC argues it needs a judge to block Microsoft and Activision Blizzard from closing their $69 billion merger until the agency's in-house court gets to rule on whether the combination hurts competition in the videogame industry. The FTC says the combination would give Microsoft's Xbox videogame console exclusive access to Activision games, leaving Nintendo consoles and Sony Group's PlayStation out in the cold. "I think you will see that every piece of evidence shows that it only makes sense for Xbox to make these Activision games to as many people on as many platforms as possible," Microsoft lawyer Beth Wilkinson said in opening arguments, adding that if an injunction is granted it could result in a three-year administrative proceeding that would kill the deal.

United States

FTC Sues Amazon for Inducing Users To Subscribe To Prime (nytimes.com) 70

The Federal Trade Commission on Wednesday sued Amazon for illegally inducing consumers to sign up for its Prime service and then hindering them from canceling the subscription, the most aggressive action against the company to date by the agency's chair, Lina Khan. From a report: The lawsuit, filed in U.S. District Court for the Western District of Washington, argues that Amazon had used design tactics on its website known as "dark patterns" to nudge people into subscribing to Prime, the F.T.C. said in a release. And when consumers wanted to cancel, they had to go through a byzantine process to do so.

"Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money," Ms. Khan said in a statement. The lawsuit was the first time that the F.T.C. has taken Amazon to court under Ms. Khan, who rose to fame with a viral critique of the company and who is ramping up scrutiny of the e-commerce giant. Ms. Khan has said the power that big tech companies have over online commerce requires regulators to be far more aggressive and has begun taking actions against them./i.

The Courts

Trial Lawyer Went After Crypto Companies. Then Someone Went After Him. (sfgate.com) 49

Trial lawyer Kyle Roche has led an interesting life, according to the New York Times. He once earned $100 million selling bitcoin. He helped win a case against Craig Wright (who claims to be Bitcoin creator Satoshi Nakamoto) through his law firm Roche Freedman. And Roche also founded a startup that lets people bet on the outcome of (civil) lawsuits, "to make access to justice more affordable."

But something very bad for his career happened in January of 2022 when two businessmen flew Roche from Miami to the U.K. to discuss an investment. When he woke up the next morning, Roche said, he felt groggy... The brain fog was odd because he didn't think he'd had all that much to drink. As he flew back to Miami a few days later, Roche couldn't shake the feeling that something was amiss.

Months passed. Then, one day last summer, Roche's world detonated. A website called Crypto Leaks posted two dozen videos of him that had been secretly recorded during his meetings with Villavicencio and Ager-Hanssen. The videos portrayed Roche and his law firm, Roche Freedman, as being in the pocket of one of their crypto clients [Ava Labs]... In other clips, Roche made it sound like his sole concern, even when representing other clients, was to promote Ava Labs' interests...

One after another, companies that Roche Freedman had sued filed motions to disqualify the firm from their cases. In October, the first of those motions succeeded: A federal judge in New York tossed Roche Freedman from a case it had filed against Tether, the operator of the world's most used "stablecoin." Within days, Roche was forced to resign from the law firm he had founded. With his career in tatters, he said, he enrolled in ethics classes and began to see a therapist.

Roche calls the recorded remarks baseless bluster to impress a prospective investor (and alleges in court there are signs of deep fake alterations). While Roche "was felled by his own loose lips and his overly cozy relationship with a client," the Times reports "he also was the victim of an elaborate international setup." On April 3, 2020, Roche Freedman filed lawsuits seeking class-action status against seven issuers of digital coins, alleging they had pumped what amounted to unregistered securities with false statements and then dumped them, leaving retail investors holding the bag... Those suits were just an opening salvo: Sixteen months later, Roche filed his biggest securities fraud case yet. It alleged that a British entrepreneur, Dominic Williams, and entities he controlled had swindled investors out of billions of dollars by aggressively promoting, and then dumping, a digital coin tied to a grandiose plan to revolutionize computing. Williams had boldly proclaimed that his Internet Computer blockchain — a decentralized network of computers powered by a digital token called ICP — would supplant the big cloud services offered by Amazon and Microsoft and become humanity's primary computing platform. But after an initial surge that briefly made it one of the most valuable cryptocurrencies, ICP had plummeted 92% — a collapse that Roche's lawsuit attributed to "massive" selling by Williams and other insiders. (Williams denied the allegations.)
The Times reports that Roche's prospective investor Ager-Hanssen, "in addition to running his venture capital firm, has long had a sideline digging up dirt on behalf of wealthy clients entangled in business disputes in Britain and Scandinavia. On multiple occasions, he has secretly recorded his targets. For example, in a 2014 interview, he recounted how he had snared the adversary of a Swedish financier with a hidden microphone and boasted that he employed former intelligence officers from the CIA, MI6 and Mossad..." Roche believes them because he thinks he knows who hired Ager-Hanssen: Williams, the British entrepreneur who was the target of Roche Freedman's biggest pump-and-dump lawsuit... On May 12, 2022, Williams wrote on Twitter that he was "coming for" his critics. That was the same day the cryptoleaks.info domain name was registered. That was the same day the cryptoleaks.info domain name was registered. Then, on June 9, 2022, the Crypto Leaks website went live. Billing itself as the defender of "the honest crypto community," it posted two reports that aligned with Williams' interests...

The first espoused a complicated theory about the ICP token crash that Williams had previously floated on Twitter. The second attacked the Times for an article it had published about the crash. Williams tweeted a link to that Crypto Leaks report, calling it "Gobsmacking." The Dfinity Foundation, a Swiss nonprofit that Williams created to oversee his blockchain, has since sued the Times for defamation in New York. The Times is seeking to dismiss the suit. The videos of Roche were the crux of Crypto Leaks' third exposé. After they were published, Williams and Dfinity filed a motion to disqualify Roche Freedman as plaintiffs' counsel in the pump-and-dump lawsuit, saying Roche's comments demonstrated "a disregard for the integrity of the judicial system...."

Last month, the judge overseeing the pump-and-dump case granted Williams' motion and disqualified Freedman Normand Friedland as plaintiffs' counsel.

The Courts

You're Owed a Little Money From a 2010 Google Class Action Lawsuit (yakimaherald.com) 57

An anonymous reader shared this report from The Penny Hoarder: If you Googled anything between 2006 and 2013, then Google owes you money for violating your privacy. Those are the terms of a class-action lawsuit that Google has settled for $23 million.

How much money does Google owe you? Well, it depends on how many people come forward to claim their share of the settlement. The current estimated payout is about $7.70 per person.

Of course, that number could go up or down before it's all over. If fewer people than expected file claims, the payout amount will go up. But if more people than expected file claims, the payout amount will go down because more people are sharing the settlement money... The deadline to file a claim is July 31...

Basically, the class-action lawsuit alleges that Google Search "improperly shared your search queries with third-party websites and companies" during the time period in question. This has to do with how Google allegedly included your search query in the link that's created whenever you click on a website in a Google search. This involves something called a "referrer header."

Even though Google settled the case, it still denies any wrongdoing or liability. As part of the lawsuit settlement, Google is updating its FAQ page.

Some interesting history from SFGate: The lawsuit was filed in 2010 over allegations that Google shared its users' search terms with third-party websites based on its use of referrer headers, which essentially shows websites how a user found them. In 2015, the case reached an $8.5 million settlement in the Northern District of California, with a vast majority of the settlement going to a collection of internet privacy groups, because the amount allocated for each individual would have been mere pennies. But the case was brought all the way up to the Supreme Court after Ted Frank, a conservative activist and vocal class action suit critic, disputed the settlement being sent to those nonprofit groups instead of the users affected by the suit. In 2019, the case made its way back down to the district court, where the preliminary settlement was approved in 2022...

The final approval hearing for the settlement, which includes whether the class action representatives will receive $5,000 and the representing attorneys will receive 25% of the $23 million sum, is scheduled for Oct. 12.

From the Settlement agreement: If the Settlement becomes final, Settlement Class Members will be releasing Google (and certain others related to Google, such as Google directors, officers and employees) from all of the settled claims. This means that you will no longer be able to sue Google (or the other released parties) regarding any of the settled claims if you are a Settlement Class Member and do not timely and properly exclude yourself from the Settlement Class...


YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT:

FILE A CLAIM BY JULY 31, 2023
This is the only way to get a payment under the Settlement.

DO NOTHING
Get no payment under the Settlement and give up your right to compensation for the claims and allegations in this case.

EXCLUDE YOURSELF BY JULY 31, 2023
Get no payment under the Settlement. This is the only option that allows you to be a part of any other lawsuit against Google about the claims and allegations in this case.

OBJECT BY JULY 31, 2023
Write to the Court about why you think the Settlement should not be approved. You may also ask to speak in Court about the fairness of the Settlement.

Government

Daniel Ellsberg, Who Leaked the Pentagon Papers, Is Dead At 92 (nytimes.com) 23

Daniel Ellsberg, a military analyst who leaked what came to be known as the Pentagon Papers, died on Friday at the age of 92. The cause was pancreatic cancer. The New York Times reports: The disclosure of the Pentagon Papers -- 7,000 government pages of damning revelations about deceptions by successive presidents who exceeded their authority, bypassed Congress and misled the American people -- plunged a nation that was already wounded and divided by the war deeper into angry controversy. It led to illegal countermeasures by the White House to discredit Mr. Ellsberg, halt leaks of government information and attack perceived political enemies, forming a constellation of crimes known as the Watergate scandal that led to the disgrace and resignation of President Richard M. Nixon. And it set up a First Amendment confrontation between the Nixon administration and The New York Times, whose publication of the papers was denounced by the government as an act of espionage that jeopardized national security. The U.S. Supreme Court upheld the freedom of the press.

Mr. Ellsberg was charged with espionage, conspiracy and other crimes and tried in federal court in Los Angeles. But on the eve of jury deliberations, the judge threw out the case, citing government misconduct, including illegal wiretapping, a break-in at the office of Mr. Ellsberg's former psychiatrist and an offer by President Nixon to appoint the judge himself as director of the Federal Bureau of Investigation. "The demystification and de-sanctification of the president has begun," Mr. Ellsberg said after being released. "It's like the defrocking of the Wizard of Oz." The story of Daniel Ellsberg in many ways mirrored the American experience in Vietnam, which began in the 1950s as a struggle to contain communism in Indochina and ended in 1975 with humiliating defeat in a corrosive war that killed more than 58,000 Americans and millions of Vietnamese, Cambodians and Laotians. [...]
Over the years, Ellsberg was mentioned on Slashdot several times. In late 2000, Ellsberg was mentioned in a story about Clinton's veto of what would have been a new law to prevent leaks of classified information.

Ellsberg also expressed his support for WikiLeaks founder Julian Assange in 2010 and called Edward Snowden the "greatest patriot whistleblower of our time."

He was also featured in a Slashdot story for his view on the growing role of internet companies in the public sphere. In 2011, Ellsberg said companies such as Google, Facebook, and Twitter need to take a stand and push back on excessive requests for personal data.
Science

Venture Capital's AI-Run Lettuce Farms Start To Go Bust (bloomberg.com) 71

The pitch for vertical farming had all the promise of a modern venture capital dream: a new way to grow crops that would use robots and artificial intelligence to conserve water, combat food insecurity and save the environment. But after firms poured billions of dollars into these startups, pushing valuations into the stratosphere, the industry is now facing a harsh new reality: funding is drying up, profits remain elusive, and creditors are circling. From a report: AeroFarms last week became the latest, most high-profile example of the challenges facing the business, filing for bankruptcy after building a massive new facility in Virginia that drained its cash, according to court papers. Its collapse comes on the heels of lettuce grower Kalera seeking court protection in April. And in May, publicly traded AppHarvest, which operates high-tech greenhouses, received a notice of default from one of its investors, according to a regulatory filing. The company contests the default notice, but if it can't reach an agreement with its creditors, the firm warned it could become "bankrupt or insolvent."

"We really were in a hype cycle," said Vonnie Estes, vice president of innovation for the International Fresh Produce Association. Venture capitalists entered the scene in a frenzy, likening these companies to software firms, and expecting comparable returns. "There was a lot of money that rushed in without really understanding that this is actually just farming." Industry experts still say that indoor farming is a crucial piece of agriculture's future, especially as climate change spurs more destructive wildfires and floods. Nonetheless, the ability of vertical farms to carve out meaningful market share on a national scale could be years away, they note.

Google

New Google Lawsuit Aims To Curb Fake Business Reviews (reuters.com) 3

Alphabet's Google on Friday sued a Los Angeles man and his companies in San Jose, California federal court, claiming he created hundreds of fake business listings on its platforms and sold them to real businesses to lure in unsuspecting customers. From a report: Fake reviews have been a recurring problem on internet commerce sites. Google said in a statement that it filed the lawsuit against Ethan QiQi Hu to "help put an end to these types of malicious schemes." Google's lawsuit said Hu creates sham businesses that appear in its search engine and Google Maps, using an "elaborate set of props" to verify them on video calls with the tech giant's agents. The lawsuit said Hu keeps a tool bench as a prop to verify fraudulent listings for garage repair, tree cutting and plumbing, and essential oils for verifying fake aromatherapy and reiki therapy businesses. Google said Hu buys thousands of fake positive reviews to make the businesses appear legitimate. He then allegedly sells the profiles as "leads" to real businesses in the same fields, which receive contacts from potential customers who reach out to the fake businesses.

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