Legal News for For 10/4 - Biden's Student Debt Relief Blocked Again, US Gov Backs Nvidia Investors in Crypto Sales Case, Meta Ad Data Limits in EU and Cupertino's Tax-sharing Settlement with Apple

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This Day in Legal History: Watergate Trial Begins

On October 4, 1974, the trial of key Watergate conspirators began, marking a significant moment in American legal and political history. The defendants included top Nixon administration officials H.R. Haldeman, John Ehrlichman, John Mitchell, Robert Mardian, and Kenneth Parkinson. These men were accused of participating in the cover-up of the break-in at the Democratic National Committee headquarters, a scandal that would ultimately lead to President Nixon’s resignation.

The trial was presided over by Judge John Sirica, who had played a pivotal role in uncovering the truth behind Watergate. At the outset, the court reviewed transcripts of the now-infamous Watergate tapes, which had been secretly recorded by President Nixon in the Oval Office. These recordings captured critical conversations revealing the extent of the administration's involvement in the cover-up.

The tapes provided key evidence, especially a June 23, 1972, conversation known as the "smoking gun" tape, in which Nixon and Haldeman discussed obstructing the FBI’s investigation. The trial was part of the broader legal reckoning following Nixon's resignation two months earlier in August 1974.

Haldeman and Ehrlichman, two of Nixon’s closest aides, were found guilty of conspiracy, obstruction of justice, and perjury. John Mitchell, Nixon’s former Attorney General, was also convicted on conspiracy charges. This trial helped close one chapter of the Watergate scandal, demonstrating the judicial system’s role in holding even the highest-ranking officials accountable for abuses of power.

A federal court has blocked President Biden’s latest student debt relief plan, ruling it likely unconstitutional. The U.S. District Court for the Eastern District of Missouri granted a preliminary injunction requested by a coalition of seven Republican-led states. Judge Matthew T. Schelp, who issued the ruling, emphasized the public interest in ensuring the government follows the law. The plan, which would have canceled debt for 27 million borrowers, is now paused.

The plaintiffs argue the plan is an executive overreach. While Georgia was dismissed from the lawsuit for lacking standing, Missouri's Higher Education Loan Authority was found to have suffered an injury, giving Missouri standing to continue the case. This ruling temporarily halts the debt relief program as the court considers whether to permanently strike it down. The injunction is a blow to Biden's efforts to reduce student debt, following the U.S. Supreme Court's earlier decision in 2023 that struck down a broader relief plan. Another related plan, known as “SAVE,” which aims to provide zero-dollar payments and expedite forgiveness for some borrowers, is also under review by the Eighth Circuit Court.

This decision prevents the debt relief plan from taking effect while the court evaluates the case, reflecting the court's consideration of the public interest and potential harm.

Biden's Latest Student Debt Relief Plan Blocked by Federal Court

The U.S. government has supported Nvidia investors in a Supreme Court case where they allege the company misled the market about its reliance on cryptocurrency mining sales. The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) filed a brief urging the Court to allow the case to proceed, siding with the investors. The Ninth Circuit Court previously revived the class action, ruling that Nvidia's CEO Jensen Huang made materially false or misleading statements about the company's revenue dependence on crypto mining, particularly before a 2018 market downturn.

Nvidia disputes the case, claiming the investors’ allegations were based on unreliable expert data. However, the DOJ and SEC argued that the claims were backed by multiple sources, including accounts from former employees, a Royal Bank of Canada report, Nvidia's own public statements, and SEC filings. These sources collectively suggest Nvidia earned $1.35 billion more from crypto sales during the boom than it disclosed.

The government emphasized that the Private Securities Litigation Reform Act (PSLRA), which governs investor lawsuits, was not misapplied by the Ninth Circuit. It rejected Nvidia's argument that the case was based solely on unsubstantiated expert opinions, pointing out that the allegations were supported by sufficient evidence to infer Nvidia's intent to mislead investors.

Nvidia Investors Backed by US in Supreme Court Crypto Sales Case

The European Union's top court has ruled that Meta must limit the use of personal data collected from Facebook users for targeted advertising. This decision supports privacy advocate Max Schrems, who argued that Meta's personalized advertising violated privacy regulations by processing personal data without proper limitations. The Court of Justice of the European Union (CJEU) emphasized that under the EU's General Data Protection Regulation (GDPR), the principle of data minimization restricts how much personal data companies can use for targeted ads.

Meta responded by stating it has invested heavily in privacy features and does not use sensitive data for personalized ads. Schrems' lawyer welcomed the decision, saying it would significantly reduce the amount of data Meta and other companies can use for advertising, even when users consent. This ruling marks another victory for Schrems, who has repeatedly taken Meta to court over alleged GDPR violations.

Meta must limit data use for targeted advertising, top EU court rules | Reuters

Cupertino, California, has reached a settlement with the state's Department of Tax and Fee Administration, allowing the city to retain millions in sales tax revenue tied to Apple’s online sales through August 2024. The settlement resolves a dispute that began in 2021 when the department audited Cupertino’s 26-year tax-sharing agreement with Apple. Under this agreement, Apple treated all in-state online sales as originating from Cupertino, directing a portion of the state sales tax to the city, which in turn shared 35% of the revenue with Apple.

The tax department has scrutinized similar deals with other retailers like Best Buy and Williams-Sonoma, arguing that businesses need to show active participation in the transactions where the sales are reported. Last year, Cupertino set aside $56.5 million to potentially repay the state as the dispute escalated to $60.3 million by February 2024.

The settlement avoids litigation, but the city did not disclose specific financial details or directly reference Apple in the announcement. It clarified that the agreement does not impact its tax-sharing arrangement with any taxpayer.

Cupertino Settles With State in Apple Sales Tax-Sharing Fight

This week’s closing theme is by Pyotr Ilyich Tchaikovsky.

This week's closing theme is the Adagio lamentoso from Tchaikovsky's Symphony No. 6 in B minor, Op. 74, also known as the "Pathétique" Symphony. Tchaikovsky composed this masterpiece in 1893, just a few months before his sudden and mysterious death. The "Pathétique" Symphony is widely regarded as his most personal and emotionally charged work, filled with profound sorrow and introspection.

The fourth movement, "Adagio lamentoso," is the symphony's haunting conclusion. Unlike most symphonies, which end on a triumphant or uplifting note, Tchaikovsky chose to close his final symphony with this slow, lamenting movement. It reflects deep melancholy and resignation, expressing a sense of despair that resonates with listeners. The music ebbs and flows between quiet, intimate passages and moments of overwhelming intensity, capturing the fragility and tragedy of life.

Tchaikovsky was known for his ability to express raw emotion through music, and the "Adagio lamentoso" exemplifies this talent. The theme's descending lines seem to mirror a downward spiral into sorrow, giving it an almost funereal quality. Some have speculated that the symphony reflects Tchaikovsky’s own inner turmoil and struggles, adding a layer of poignancy to the already emotional score.

As you listen to the "Finale" this week, take note of its deep, somber beauty and how Tchaikovsky blends anguish with moments of quiet reflection. It's a fitting close to a symphony that grapples with life's most profound emotions.

Without further ado, Pyotr Ilyich Tchaikovsky's Symphony No. 6 in B minor, Op. 74, the Pathetique Symphony. Enjoy.

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