The Supreme Court said Friday it will decide whether to block a $10 billion lawsuit Mexico filed against leading U.S. gun manufacturers over allegations their commercial practices have helped caused much bloodshed there.
The gun makers asked the justices to undo an appeals court ruling that allowed the lawsuit to go forward despite broad legal protections for the firearm industry.
A federal judge has since tossed out the bulk of the lawsuit on other legal grounds, but Mexico could appeal that dismissal. Mexico argues the companies knew weapons were being sold to traffickers who smuggled them into Mexico and decided to cash in on that market. The government estimates 70% of the weapons trafficked into Mexico come from the United States.
The defendants include big-name manufacturers such as Smith & Wesson, Beretta, Colt and Glock. They say Mexico has not shown the industry has purposely done anything to allow the weapons to be used by cartels and is trying to “bully” gunmakers into adopting gun-control measures.
Originally filed in 2021, the lawsuit was initially tossed out by a district court who cited legal protections for gun makers from damages resulting from criminal use of firearms. But the 1st U.S. Circuit Court of Appeals revived the case under an exception to that law. The gunmakers appealed that ruling to the Supreme Court, arguing they have followed lawful practices and the case has no business in American courts.
U.S. District Judge F. Dennis Saylor in Boston again dismissed the case against six of the eight companies in August, ruling Mexico had not provided concrete evidence that any those companies’ activities in Massachusetts were connected to any suffering caused in Mexico by guns.
Still, with some claims remaining and an appeal possible, the gun makers argue the 1st Circuit ruling could hang over the industry for years if allowed to stand.
Sean “Diddy” Combs headed to jail Tuesday to await trial in a federal sex trafficking case that accuses him of presiding over a sordid empire of sexual crimes protected by blackmail and shocking acts of violence.
The music mogul is charged with racketeering conspiracy and sex trafficking. The indictment against him lists allegations that go back to 2008.
He’s accused of inducing female victims and male sex workers into drugged-up, sometimes dayslong sexual performances dubbed “Freak Offs.” The indictment also refers obliquely to an attack on his former girlfriend, the R&B singer Cassie, that was captured on video.
“Not guilty,” Combs told a court, standing to speak after expressionlessly listening to the allegations with his uncuffed hands folded in his lap.
After U.S. Magistrate Judge Robyn Tarnofsky declined to grant him bail, Combs took a long swig from a water bottle, then was led out of court, turning toward family members in the audience as he went.
“Mr. Combs is a fighter. He’s going to fight this to the end. He’s innocent,” his lawyer, Marc Agnifilo, said after court. He plans to appeal the bail decision.
The Bad Boy Records founder is accused of sexually abusing and using physical force toward women and getting his personal assistants, security and household staff to help him hide it all. Prosecutors say he also tried to bribe and intimidate witnesses and victims to keep them quiet.
“Simply put, he is a serial abuser and a serial obstructor,” Assistant U.S. Attorney Emily Johnson told a court.
Agnifilo acknowledged Combs was “not a perfect person,” saying he’d used drugs and had been in “toxic relationships” but was getting treatment and therapy.
“The evidence in this case is extremely problematic,” the attorney told the court.
He maintained that the case stemmed from one long-term, consensual relationship that faltered amid infidelity. He didn’t name the woman, but the details matched those of Combs’ decade-long involvement with Cassie, whose legal name is Casandra Ventura.
The “Freak Offs,” Agnifilo contended, were an expansion of that relationship, and not coercive.
“Is it sex trafficking? Not if everybody wants to be there,” Agnifilo said, arguing that authorities were intruding on his client’s private life.
Prosecutors said in court papers that they had interviewed more than 50 victims and witnesses and expect the number to grow. They said they would use financial, travel and billing records, electronic data and communications and videos of the “Freak Offs” to prove their case.
Combs was arrested Monday in Manhattan, roughly six months after federal authorities raided his luxurious homes in Los Angeles and Miami.
A conviction on every charge would require at least 15 years in prison, with the possibility of a life sentence.
The indictment describes Combs as the head of a criminal enterprise that engaged or attempted to engage in sex trafficking, forced labor, interstate transportation for purposes of prostitution, drug offenses, kidnapping, arson, bribery and obstruction of justice.
Combs and his associates wielded his “power and prestige” to intimidate and lure women into his orbit, “often under the pretense of a romantic relationship,” according to the indictment.
It says he then would use force, threats and coercion to get the women to engage with male sex workers in the “Freak Offs” — “elaborate and produced sex performances” that Combs arranged and recorded, creating dozens of videos. He ensured their participation by procuring and providing drugs, controlling their careers, leveraging his financial support and using intimidation and violence, according to the indictment. It said his employees facilitated “Freak Offs” by taking care of tasks like travel and hotel arrangements and stocking them with such supplies as drugs and baby oil.
The events could last for days, and Combs and victims would often receive IV fluids to recover from the exertion and drug use, the indictment said.
During the searches of Combs’ homes earlier this year, law enforcement seized narcotics, videos of the performances and more than 1,000 bottles of baby oil and lubricant, according to prosecutors. They said agents also seized firearms and ammunition, including three AR-15s with defaced serial numbers in his bedroom closet in Miami.
Combs’ lawyer said his client didn’t own the guns, noting that he employs a security company.
The indictment says Combs choked, shoved, hit and kicked people, causing injuries that often took days or weeks to heal. His employees and associates sometimes kept victims from leaving or tracked down those who tried, the indictment said.
It alleges that Combs used explicit recordings as “collateral” to ensure the women’s continued obedience and silence. He also exerted control over victims by promising career opportunities, providing and threatening to withhold financial support, dictating how they looked, monitoring their health records and controlling where they lived, according to the indictment.
One month after a judge declared Google’s search engine an illegal monopoly, the tech giant faces another antitrust lawsuit that threatens to break up the company, this time over its advertising technology.
The Justice Department, joined by a coalition of states, and Google each made opening statements Monday to a federal judge who will decide whether Google holds a monopoly over online advertising technology.
The regulators contend that Google built, acquired and maintains a monopoly over the technology that matches online publishers to advertisers. Dominance over the software on both the buy side and the sell side of the transaction enables Google to keep as much as 36 cents on the dollar when it brokers sales between publishers and advertisers, the government contends in court papers.
They allege that Google also controls the ad exchange market, which matches the buy side to the sell side.
“It’s worth saying the quiet part out loud,” Justice Department lawyer Julia Tarver Wood said during her opening statement. “One monopoly is bad enough. But a trifecta of monopolies is what we have here.”
Google says the government’s case is based on an internet of yesteryear, when desktop computers ruled and internet users carefully typed precise World Wide Web addresses into URL fields. Advertisers now are more likely to turn to social media companies like TikTok or streaming TV services like Peacock to reach audiences.
In her opening statement, Google lawyer Karen Dunn likened the government’s case to a “time capsule with with a Blackberry, an iPod and a Blockbuster video card.”
Dunn said Supreme Court precedents warn judges about “the serious risk of error or unintended consequences” when dealing with rapidly emerging technology and considering whether antitrust law requires intervention. She also warned that any action taken against Google won’t benefit small businesses but will simply allow other tech behemoths like Amazon, Microsoft and TikTok to fill the void.
According to Google’s annual reports, revenue has actually declined in recent years for Google Networks, the division of the Mountain View, California-based tech giant that includes such services as AdSense and Google Ad Manager that are at the heart of the case, from $31.7 billion in 2021 to $31.3 billion in 2023,
The trial that began Monday in Alexandria, Virginia, over the alleged ad tech monopoly was initially going to be a jury trial, but Google maneuvered to force a bench trial, writing a check to the federal government for more than $2 million to moot the only claim brought by the government that required a jury.
The case will now be decided by U.S. District Judge Leonie Brinkema, who was appointed to the bench by former President Bill Clinton and is best known for high-profile terrorism trials including that of Sept. 11 defendant Zacarias Moussaoui. Brinkema, though, also has experience with highly technical civil trials, working in a courthouse that sees an outsize number of patent infringement cases.
The Virginia case comes on the heels of a major defeat for Google over its search engine, which generates the majority of the company’s $307 billion in annual revenue. A judge in the District of Columbia declared the search engine a monopoly, maintained in part by tens of billions of dollars Google pays each year to companies like Apple to lock in Google as the default search engine presented to consumers when they buy iPhones and other gadgets.
The Supreme Court on Wednesday kept on hold the latest multibillion-dollar plan from the Biden administration that would have lowered payments for millions of borrowers, while lawsuits make their way through lower courts.
The justices rejected an administration request to put most of it back into effect. It was blocked by the 8th U.S. Circuit Court of Appeals.
In an unsigned order, the court said it expects the appeals court to issue a fuller decision on the plan “with appropriate dispatch.”
The Education Department is seeking to provide a faster path to loan cancellation, and reduce monthly income-based repayments from 10% to 5% of a borrower’s discretionary income. The plan also wouldn’t require borrowers to make payments if they earn less than 225% of the federal poverty line — $32,800 a year for a single person.
Last year, the Supreme Court’s conservative majority rejected an earlier plan that would have wiped away more than $400 billion in student loan debt.
Cost estimates of the new SAVE plan vary. The Republican-led states challenging the plan peg the cost at $475 billion over 10 years. The administration cites a Congressional Budget Office estimate of $276 billion.
Two separate legal challenges to the SAVE plan have been making their way through federal courts. In June, judges in Kansas and Missouri issued separate rulings that blocked much of the administration’s plan. Debt that already had been forgiven under the plan was unaffected.
The 10th U.S. Circuit Court of Appeals issued a ruling that allowed the department to proceed with a provision allowing for lower monthly payments. Republican-led states had asked the high court to undo that ruling.
But after the 8th Circuit blocked the entire plan, the states had no need for the Supreme Court to intervene, the justices noted in a separate order issued Wednesday.
The Justice Department had suggested the Supreme Court could take up the legal fight over the new plan now, as it did with the earlier debt forgiveness plan. But the justices declined to do so.
“This is a recipe for chaos across the student loan system,” said Mike Pierce, executive director of the Student Borrower Protection Center, an advocacy group.
“No court has decided on the merits here, but despite all of that borrowers are left in this limbo state where their rights don’t exist for them,” Pierce said.
Eight million people were already enrolled in the SAVE program when it was paused by the lower court, and more than 10 million more people are looking for ways to afford monthly payments, he said.
Sheng Li, litigation counsel with the New Civil Liberties Alliance, a legal group funded by conservative donors, applauded the order. “There was no basis to lift the injunction because the Department of Education’s newest loan-cancellation program is just as unlawful as the one the Court struck down a year ago,” he said in a statement.