In An ACTUAL Case Of Chilling Free Speech, At The Supremes…

The Supremes do occasionally issue rulings about the actual contours of what is allowed protest speech, as contrasted from prohibited lawless conduct.

In a case out of Louisiana — during George Floyd protests, a BLM member was held liable for what Louisiana called the “negligence standard” of injuries to a police officer working the protest. The trial court tried to hold an individual, who signed the protest permit liable, when an officer was injured at the protest — on a negligence theory (that it was “reasonably foreseeable” that an officer might be hurt, if the crowd grew too agitated).

What in fact transpired was that the Fifth Circuit then held that petitioner DeRay Mckesson, the leader of a Black Lives Matter protest in Baton Rouge, Louisiana, could be liable, under a negligence standard, for serious injuries sustained by a police officer when an unidentified individual attending that protest threw a hard object that hit the officer in the face. But speech cannot be punished on a mere negligence standard, as the courts have long held. Doubly so, where the person being sued (without dispute) was in no manner involved in the random throwing of the object. He was well-away from where that occured.

That “negligence standard” had never been the law, for a pure speech protest permit.

And since then, the Supremes decided Counterman, in any event. That case held that law enforcement must prove — in true-threats cases — that the defendant had some subjective understanding of his statements’ threatening nature, as the First Amendment requires a more demanding showing than just “recklessness“. In this case, there were no threats made by Mr. McKesson, in the record — of any sort (and nothing “reckless”, in any event), against law enforcement in Baton Rogue. So the court held him liable on “negligence alone”.

And so, the able Justice Sotomayor writes this morning, to explain to the Fifth Circuit what the law — as developed — since Counterman v. Colorado requires of the State, in McKesson (in now its second time at the highest court).

Mr. McKesson (after Counterman), cannot be liable unless the State can show that he was “more than reckless” — in his encouragement of the crowds toward lawless conduct — and in any event, mere negligent speech won’t support his liability for the officer’s injury.

True enough, being a cop is a dangerous job. Guarding protests — and protestors — is part of the job.

He easily could have donned riot gear, but he chose not to. It was a hot day, and it would seem he expected the crowd would be largely peaceful. And it was.

Accidents do happen — and if one cannot find and arrest the bottle thrower — one cannot hold the organizer responsible under our First Amendment protections jurisprudence — certainly not on a mere negligence theory.

Yep, this McKesson case is plainly about state actions to restrict protected expression — unlike the ones that the Powerline boys yammer on about, week after week, occuring in private social media living rooms. [No state actions there.]

Now you know.

Bill Otis: “Not Much of Anything Really.” True.

Not that I care (much), but Bill Otis says this tonight (and he’s more right than he knows):

…I guess nominally I’m Episcopalian, although not much of anything, really…

Yep — and he proves his lack of gravitas/seriousness… with claims like this: that liberals want to “get those Jews and Asians out of here and give the spots to underperforming blacks…”

Who on Earth is this… malign moron?

Out.

Some Apparent Humana Wrangling — On Whether It Will Fully Pay Plaintiffs’ Class Counsel, For The Settled Zetia® Antitrust Class Action In Virginia…

An earlier order in the Norfolk, Virginia USDC had set five per cent of all settled amounts aside, for the benefit of the lawyers who’ve been working for nearly a decade now, on this massive multi-district federal class action litigation.

But at the end of last week, apparently Humana, Kaiser and Centene — through their local counsels — made some noises that their respective received settlement payments might not include a specific amount set aside for the class plaintiffs’ steering counsels. And so those lawyers have asked the able USDC Judge to appoint a bank as escrow agent, and have Merck and Glenmark pay the five percent — as the checks are cut, or wires transferred. . . directly into the bank escrow account for these long-laboring lawyers.

This is all so that the big insurers won’t be able to short them on the decade’s worth of fees and expenses — that got us to this multi-billion dollar settlement. [Here is just one of our earlier backgrounders, on the class action — more generally.] And from the memo requesting the appointment of a protective escrow agent, of April 11, 2024 — we read this:

…Specifically, CBF plaintiff Humana, whose counsel also represent CBF plaintiffs Kaiser and Centene, filed in its home court a “background and current posture” letter in which it claimed that the “continuing applicability of [this Court’s Common Benefit Order] is uncertain”, while ignoring that the Common Benefit Order expressly retained this Court’s jurisdiction, for enforcement purposes, “over each CBF Case regardless of whether the case is subsequently transferred or remanded to a different court for later proceedings or trial….”

Given the risks posed by this CBF plaintiff’s claim, the Court should immediately enter the proposed Escrow Agent Order to clearly establish Defendants’ reporting, holdback, and deposit duties and thereby immediately minimize the risk of loss and possible defiance of the Court’s Common Benefit Order….

I think the lawyers’ five percent totals nearly $90 million, as the various buckets of claims look to have settled for an aggregate of over $2 billion — running from about 2008 to 2023. And so, I would expect that the escrow order will be entered, and the insurers will not be able to pull an “end run” around class counsel — if that was even ever their intention.

If it is not their intent, then they should not complain about the escrow — and if it is, then the escrow is likely needed. Onward, smiling — with a busy, warm, museums-infused Spring week ahead.

नमस्ते

Paul Mirengoff Yet Again Offers Some “Damnable Lies” — About The 1960s… And Today’s Protests..

I don’t give a crap about the banal hypocrisy Mirengoff displays about today’s college campus occupations / protests.

But the fact is he… and John and Scott did the exact same, about a cause they believed in, at Dartmouth as undergrads, in the ’60s. That they now claim to no longer believe in the things that animated their multi-day “takeover” of that campus administration building… is of zero relevance. They did it.

And… I. Don’t. Care. About. Their. Decades. Later. Disillusionment. Either. [They did it — so what’s up with the nonsense, son?!]

No, I write this Sunday morning to excoriate Paul Mirengoff, over his damnably entitled lie, below — in describing his time at Dartmouth:

“…But when students began taking over college administration buildings and manhandling deans as they escorted them out the door, the coddling finally came to an end (at least for protests led by white students). Eventually, colleges started calling in the police. At Dartmouth, our occupation of Parkhurst Hall resulted in 30-day jail sentences….”

[The bolded part by Paul… is uniquely malevolent.] Hey Paul… I would like to introduce you to… one Bull Conner. Or any number of Alabama police officers on the Edmund Pettis Bridge.

Please say hello, by the way, to the late great Rep. John Louis, or Martin Luther King, Jr…. or Andrew Young, or Ralph Abernathy or A. Philip Randolph. Or any of the migrant farm workers’ advocates in Southern and Central California, of the day — or the hundreds of young Black (and some white) students who died in the South just a few years earlier than your silly campus “jail sentences“. Jeez.

The notion that Black and Latin kids were treated with kid gloves, in ANY 1960s protest aftermath… is the product of an ensuing six decades of utterly unearned Whyte privilege, Paul.

Your privileges have caused a malign, selective amnesia — about what actually happened.

YOU were the ones handled with kid gloves, seeing your undergrad records cleared, and being graduated on time with honors, all. [John’s dad having secured the best of criminal defenses, in the Northeast — through his legal fraternities of Ivy educated Whyte Guys.]

Then each of you paddled off to the best US law schools (avoiding Vietnam altogether, by skipping the draft as “exempt” grad students) — the law schools being Harvard and Stanford, respectively. [And just on the notion of Vietnam, consider that Cassius Clay was stripped of his titles, jailed for over a year, and prohibited from fighting, in the prime of his career — solely because no lawyer told him to enroll in a graduate school to avoid the draft. No, he stood like a man, and said he would NOT go to kill his brothers in southeast Asia. He was treated better than you?! REALLY?!?]

Meanwhile, most of the civil rights protestors in the South endured fire-hoses, dog attacks, beatings and in many cases… far worse. Lynchings. Billy-clubs. Klan-whippings. [In Houston, an entire battalion of US “Buffalo” soldiers was hunted, with the aim of being shot dead, by the whyte populace, in vigilante fashion, after whyte Texans decided they didn’t like armed “colored” men in their town. And then in a one day “trial” — 19 soldiers who defended themselves were… hung. Holy sh!t, Paul. See at right.]

In sum, this goes back at least two centuries — since you think whyte protestors were treated worse… please do go watch all 12 hours of “Eyes on the Prize“, son.

Damn. Just… damn.

This Is A Life… To Emulate: Dr. Joel Breman — Travel Well; Travel Light!

His daughter remembers his motto, during her high school years: “Adventure first, safety a close second.” recalls Johanna Tzur. She says her father encouraged her to do a high school year abroad in the Soviet Union at a time when few Americans traveled there. It would be interesting, he promised. And one more thing, says Tzur: “I remember him vividly explaining I was never to eat anything that couldn’t be peeled.”

In the year before his death, Breman was still teaching a course on infectious diseases at George Washington University and working on a textbook as well as a memoir. Here’s the NPR rundown of a wonderful life, in bio-sciences — and in fact, in one of his proudest moments, in the 1980s, he won the Order of the Leopard, from the government of Zaire, for his work in mitigating endemic diseases there:

…Peter Piot, a fellow disease investigator, remembers the exact date that he met Breman. It was October 18, 1976, and Piot, then a young physician and microbiologist, had come to the city of Kinshasa in central Africa (in current-day Democratic Republic of the Congo) to investigate a terrifying, deadly, nameless new disease. Breman, already 40 years old and with several epidemic investigations under his belt, was there working for what was then called the U.S. Center for Disease Control….

Piot says it was clear that the pilots dropping them and others into the remote epidemic zone never expected to see them alive again.

Once on the ground, Piot watched how Breman did his epidemiology. “He taught me that when you go into a village, you don’t just start talking about why you’re here,” Piot said. Rather, they went early in the morning, talked with the village elders and asked them how they’ve been. “And then, and only then, you start with your questions.”

Born in Chicago and raised in Los Angeles, Breman showed his talents and leadership early on. In high school he was student body president and a football player; in college at UCLA he was president of his fraternity and rowed varsity crew.

Breman graduated from the University of Southern California School of Medicine in 1965 and spent the next 11 years working on various diseases with the CDC and World Health Organization. He would go on to earn a doctorate in public health from the London School of Hygiene and Tropical Medicine….

Piot, Breman and others spent several months on the ground in central Africa. The disease they were investigating turned out to be Ebola, which at the time had a 90 percent death rate.

“It was super stressful,” said Piot. The team was sharing mattresses, working day and night, collecting data from people who didn’t necessarily want to see them. “But [Breman] remained calm always.”

By the end of the trip, Piot says he was bowled over by Breman’s equanimity, patience, kindness, respectfulness, and his ability and enthusiasm in telling jokes in both English and French….

A life well lived, indeed — is its own reward. Travel well, but do travel light Dr. Breman. Smiling out into the sunshine, with baby girls due in for a play date, tonight… it is well, with my soul.

नमस्ते

A Look At The $20-Million-A-Year Club, In Pharma CEO Compensation… [Would Include Amazon And Apple, Too]

To be fair, Rob Davis reaching $20 million plus in annual compensation is primarily a function of the rising price of Merck’s stock on the NYSE (and that has been very good for all shareholders, when added to the very hefty dividends, paid every quarter, year after year — since at least the 1950s). You see, at the time these last grants of options and restricted stock were made, Merck was trading between $95 and $103 per share.

Recently Merck’s NYSE price was trading between $128 and $134 a share — up smartly from these latest grant dates. However, Mr. Davis’s cash bonus was decreased, as it has probably maxed out — in its “added carrot” appeal to him, given that he is up over 30%, on his stock compensation. But the board did bump up his salary to run a little ahead of the core inflation rate for the year. [Not that he would be, in any manner, worried about the rising prices of avocados — in terms of daily brown bag lunch affordability — mind you.]

All in, while I had complained for years that the con-man “Fast” Fred Hassan was vastly overpaid — for his uniformly terrible decision-making, at legacy Schering-Plough… I generally felt that Kenneth C. Frazier was fairly compensated for the unique skill set he offered Merck.

So too now, Mr. Davis — he’s matured as a leader since his early days at Lilly. That said, he lacks some of the charisma of a Ken Frazier or Roy Vagelos (perhaps the gold standard name in this arena). Here’s the details, from Fierce’s nice collection of proxy disclosures — as Saturday filler fodder:

…Merck CEO Robert Davis has cracked the $20-million mark in annual pay for the first time, putting him in an exclusive club of biopharma heavy hitters.

Davis, 57, who took over as CEO in 2021 and as chairman the following year, received a 9% bump in pay in 2023 to $20.3 million, according to the company’s proxy filing.

Davis joins Johnson & Johnson’s Joaquin Duato ($28.4 million), Eli Lilly’s David Ricks ($26.6 million), AbbVie’s retiring Richard Gonzalez ($25.7 million), Pfizer’s Albert Bourla ($21.6 million), AstraZeneca’s Pascal Soriot ($21.3 million) and Vertex’s Reshma Kewalramani ($20.6 million) in the $20-million-plus club for 2023….

Davis’s compensation increase in 2023 came despite a drop in his bonus from $4.1 million to $3.6 million. His equity awards however increased from $11.4 million to $14 million, while his salary was up from $1.54 million to $1.60 million….

Indeed, though — it is astonishing that the CEOs of these vastly profitable behemoth companies are just now catching up to what the CEO Jason Les pulled down, last year (last available disclosed total: 2022) at tiny Riot Platforms (revenue of under $100 million; never GAAP profitable), for losing over $2 billion life to date — and (did I say this part already?!) never making a GAAP profit from operations in eight long years.

Riot is a Bitcoin miner — like all the others, set to get crushed by the “halvening” — coming end of next week. [Accordingly, it has seen its stock fall from the mid-$20s, to a little over $9 on the NASDAQ, as of Friday.]

That THAT GUY makes over $20 million a year is absolutely…

I N S A N E.

नमस्ते

SB-4 In Texas Is Properly Enjoined: US Tells Fifth Circuit…

As I mentioned this morning most recently, the Fifth Cir. had (unusually, since argument was already compete) asked for a primer on equitable remedies under federal immigration law, in favor of the feds. Tonight, both sides supplied just that.

The feds have given the Fifth Circuit exactly what it asked for — about the various ways the feds are allowed to seek equitable relief, in immigration matters — and the state of Texas is expressly prevented from seeking equitable relief, by raising state law claims, as against the feds — where immigration is involved.

As here. Feel free to read it all — it runs 20 pages.

But to be fair, I will link the state’s 30 page position… solely so it may be… duly mocked. It is not in any sense, an accurate telling of the applicable law (it can be safely ignored).

Let’s read from the feds, then, tonight:

…[E]ven if in one or more instances, Congress made express in statute what has long been clear from the Supreme Court’s case law — namely, that the United States may seek injunctive relief in federal court to protect its sovereign interests — that “belt-and-suspenders” drafting would not give rise to the inference that such statutory authorization would be necessary in every other case. See In re Coughlin, 33 F.4th 600, 609 (1st Cir. 2022) (citing Ethan J. Leib & James J. Brudney, The Belt-and-Suspenders Canon, 105 Iowa L. Rev. 735 (2020)).

Texas’s invocation of statutes from disparate contexts does nothing to support the idea that Congress has somehow displaced the equitable remedy that the United States has invoked in the circumstances of this case. The existence of comprehensive legislation in some areas does not displace background equity in others….

In short, Congress’s enactment of some statutes that include provisions expressly providing for the United States to seek equitable relief against violations in certain specified circumstances does not diminish the United States’ preexisting authority to vindicate its sovereign authority and interests by seeking an injunction. Here, the United States has done so by seeking an injunction to prevent the enforcement of a state statute that interferes with federal government’s administration of immigration law by intruding into a field that is exclusively occupied by the federal government and that conflicts with the standards and enforcement procedures under federal law.

The Court should affirm the preliminary injunction….

Texas has identified no fewer than 300 instances where the feds have the power to invoke equitable remedies against states, for violating federal law (just the same as here). It doesn’t require a new act of Congress to do so, each time. That’s just… silly.

Sure seems like Texas should just admit they are… wildly wrong, here.

But they won’t.

Onward.

In Which Mirengoff Would Tell Us That “People’s Beliefs” In A Conspiracy… Amount To “Evidence” That The False Conspiracy Is… TRUE?!?

This is simply…. mind numbing.

Paul starts by stipulating that Tangerine is an inveterate liar. He openly agrees that there are lots and lots of verifiably false statements, out of Trump’s mouth on a daily basis.

But then — defying every ACTUAL rule of evidence, federal and state, he goes on to say we cannot take that — as evidence(!) — of general untruthfulness.

No, we must accord proper countervailing weight to the notion that lots of gullible (or malign) loons wholeheartedly believe his lies. So, according to Mirengoff, we must treat them as at least partially worthy of belief… because “some people” believe them.

Tautology — meet… tautology. [A classical logical error, that — well described in the literature, stretching back to about the sixth century BCE, without interruption — and most cogently explained by Immanuel Kant, by about 1740. Where was I? Oh. Right.]

Paul absolutely knows that The WaPo is correct to say there is “no evidence” for almost all Tangerine’s cray-cray claims. [And we are watching his stake in “Truth Social” go down the tubes, for it — day by day, as he offers ever wilder, and newer nonsense theories purportedly in support, from his own keyboard — or Devin Nunes’s.]

But Paul also knows that while Trump had Bill Barr run the DoJ as a political weapon, Mr. Biden has told Merrick Garland that he is to act independently (as had been 200 years of history’s teachings) from the White House. And Mr. Garland has.

It just turns out that Trump has committed lots of felonies. And Mr. Garland is just doing his job. In six short years, Mirengoff forgot all he ever knew — that even Dick Cheney was much for politicizing the DoJ. No — not since Nixon had we seen such banana republic stuff.

Stuff Trump took to a whole new level 2018 to 2021. [In that sense, Paul is correct, when he observes that Trump has — through debauchery — changed for many in the GOP what their relationship is to “objective” truths, altogether. And that’s not a good thing.]

So again, Paul ASSUMES — despite no evidence to support his notion… as a bare naked assumption — that Mr. Biden is pressing his thumb on the scales of justice, as to prosecuting Tangerine’s open and notorious crime spree (still ongoing, as securities fraud at stock symbol “DJT”).

That is… a preposterously bad form of argument / persuasion, Paul. Take a seat.

43 Years Ago, This Morning — NASA’s Reusable “Space Shuttle Era” Opened.

I watched it all, on that morning, on the university’s student union grill TV — the grill then called Alfred E. Packer’s.

And I knew to a certainty, that space exploration had forever been changed, in that sudden blinking of an eye. A large international space station would be feasible, as would what became the Hubble space telescope, and dozens of other new scientific endeavors, now that we could haul stuff up to orbit, and bring it all back down — and the crews, with it — over and over again. Here’s the bit:

…The First Space Shuttle: NASA astronauts John W. Young, commander, and Robert L. Crippen, pilot, aboard….

The new era in space flight began on April 12, 1981. That is when the first Space Shuttle mission (STS-1) was launched. The Marshall Space Flight Center developed the propulsion system for the Space Shuttle. STS-1 was meant to demonstrate a safe launch into orbit and a safe return of the orbiter and crew, as well as verify the combined performance of the entire shuttle vehicle – orbiter, solid rocket boosters and external tank.

The first space shuttle landed at Edwards Air Force Base in California on April 14, 1981, after having successfully tested its major systems….

It both seems like… yesterday, and like… a million years, and miles… ago — too.

Whoosh!

नमस्ते

I Should Note That This Supremes Decision Means A LOT LESS… That Some Will Say It Does: On Securities Law Liability, For “Pure Silence”

There will doubtlessly be some commentators who will say this is a big shift in the federal securities law jurisprudence announced this morning.

It isn’t. [In fact, it is not even worth naming the case. And to be clear, this is a defense Elizabeth Holmes tried to put forward — but she had created affirmative duties to disclose for herself, when speaking to her investors, because she had previously openly lied about so many of these material matters — like whether the device even worked. Smile.]

This new case merely holds that one may remain silent, where no special circumstances require affirmative speaking — speaking, to make the other statements made, not misleading by omitting context.

That’s all it holds. If someone buys a security without any disclosures, from someone else, without asking any questions, and without a disclosure document (in an exempt transaction, for example), there can be no 10b-5(b) liability — due to the failure of the buyers’ diligence.

Unsurprising, and that’s been understood to be the well settled law — for at least four decades. Since I practice M&A in the life sciences, this all comes up pretty often. Now you know. Onward, into the sunshiny Friday air.

Smile.

नमस्ते