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Twitter lays off staff as Musk blames activists for ‘massive’ ad revenue drop

  • Musk looking to axe around half of Twitter’s workforce
  • Employees file class action against Twitter
  • Staff lose access to systems
  • Volkswagen pulls ads

Nov 4 (Reuters) – Twitter Inc started a major round of layoffs on Friday, alerting employees of their job status by email after barring the entrances to offices and cutting off workers’ access to internal systems overnight.

The move follows a week of chaos and uncertainty about the company’s future under new owner Elon Musk, the world’s richest person, who tweeted on Friday that the service was experiencing a “massive drop in revenue” as advertisers pulled spending.

Musk blamed the losses on a coalition of civil rights groups that has been pressing Twitter’s top advertisers to take action if he did not protect content moderation. The groups said on Friday they are escalating their pressure and demanding brands pull their Twitter ads globally.

“In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday,” Twitter said in an email to staff on Thursday evening announcing the cuts that came on Friday, which was seen by Reuters.

The company was silent about the depth of the cuts, although internal plans reviewed by Reuters this week indicated Musk was looking to cut around 3,700 Twitter staff, or about half the workforce.

Staff who worked in engineering, communications, product, content curation and machine learning ethics were among those impacted by the layoffs, according to tweets from Twitter staff.

Shannon Raj Singh, an attorney who was Twitter’s acting head of human rights, tweeted on Friday that the entire human rights team at the company had been cut.

Musk has promised to restore free speech while preventing Twitter from descending into a “hellscape.” However, his reassurances have failed to calm major advertisers, which have expressed apprehension about his takeover for months.

Volkswagen AG (VOWG_p.DE) recommended its brands pause paid advertising on Twitter until further notice in the wake of Musk’s takeover, it said on Friday. Its comments echoed similar remarks from other companies, including General Motors Co (GM.N) and General Mills Inc (GIS.N).

Angelo Carusone, president of Media Matters for America, which is part of the civil rights coalition, said he knew of two more major advertisers that were preparing to announce that they would pause ads on the platform.

Musk tweeted that his team had made no changes to content moderation and done “everything we could” to appease the groups. “Extremely messed up! They’re (civil right groups) trying to destroy free speech in America.”

Speaking at an investors conference in New York on Friday, Musk called the activist pressure “an attack on the First Amendment.”

Twitter did not immediately respond to a request for comment.

ACCESS TO SYSTEMS CUT

Dozens of staffers tweeted they lost access to work email and Slack channels before receiving an official notice, which they took as a sign they had been laid off.

They tweeted blue hearts and salute emojis expressing support for one another, using the hashtags #OneTeam and #LoveWhereYouWorked, a past-tense version of a slogan employees had used for years to celebrate the company’s work culture.

Twitter’s curation team, which is responsible for “highlighting and contextualizing the best events and stories that unfold on Twitter,” had been axed, employees said on the platform. The company’s communications team in India has also been laid off, according to a Twitter executive in Asia.

A team that focused on research into how Twitter employed algorithms, an issue that was a priority for Musk, was also eliminated, according to a tweet from a former senior manager at Twitter.

Senior executives including Vice President of Engineering Arnaud Weber also said their goodbyes on Twitter on Friday: “Twitter still has a lot of unlocked potential but I’m proud of what we accomplished,” he tweeted.

Employees of Twitter Blue, the premium subscription service that Musk is bolstering, were also let go. An employee with the handle “SillyRobin” who had indicated they were laid off, quote-tweeted Musk’s previous tweet saying Twitter Blue would include “paywall bypass” for certain publishers.

“Just to be clear, he fired the team working on this,” the employee said.

Twitter’s head of Safety & Integrity, Yoel Roth, appeared to have kept his job, as did Vice President of Product Keith Coleman, who launched a tool called Birdwatch for users to write notes on tweets they identify as misleading.

Last week, Musk endorsed Roth, citing his “high integrity” after Roth was called out over tweets critical of former U.S. President Donald Trump years earlier. Musk has also tweeted that he likes Birdwatch.

Roth and Coleman did not respond to requests for comment.

DOORS LOCKED

Twitter said in its email to staffers that offices would be temporarily closed and badge access suspended in order “to help ensure the safety of each employee as well as Twitter systems and customer data.”

Offices in London and Dublin appeared deserted on Friday, with no employees in sight. At the London office, any evidence Twitter had once occupied the building was erased.

A receptionist at Twitter’s San Francisco headquarters said a few people had trickled in and were working in the floors above despite the notice to stay away.

A class action was filed on Thursday against Twitter by its employees, who argued the company was conducting mass layoffs without providing the required 60-day advance notice, in violation of federal and California law.

The lawsuit also asked the San Francisco federal court to issue an order to restrict Twitter from soliciting employees being laid off to sign documents without informing them of the pendency of the case.

Reporting by Sheila Dang in Dallas, Katie Paul in Palo Alto, Calif., and Paresh Dave in Oakland, Calif.
Additional reporting by Fanny Potkin, Rusharti Mukherjee, Aditya Kalra, Martin Coulter, Hyunjoo Jin, Supantha Mukherjee and Arriana McLymore
Writing by Matt Scuffham
Editing by Kenneth Li, Jason Neely and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

Paresh Dave

Thomson Reuters

San Francisco Bay Area-based tech reporter covering Google and the rest of Alphabet Inc. Joined Reuters in 2017 after four years at the Los Angeles Times focused on the local tech industry.

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Zuckerberg to testify in U.S. case against Facebook’s virtual reality deal

Oct 28 (Reuters) – Meta Platforms Inc (META.O) Chief Executive Officer Mark Zuckerberg will testify in a case by the Federal Trade Commission (FTC) that argues the company’s proposed deal to buy virtual reality (VR) content maker Within Unlimited should be blocked.

In a court document filed with U.S. District Court Northern District Of California on Friday, the FTC listed 18 witnesses it plans to question, including Zuckerberg, Within CEO Chris Milk and Meta Chief Technology Officer Andrew Bosworth.

They were also on a list of witnesses submitted on Friday by defendants Meta and Within.

In addition to defending the Within acquisition, Zuckerberg is expected to be questioned about the Facebook-parent’s strategy for its VR business, as well as the company’s plans to support third-party developers, according to the court document.

The FTC had filed a lawsuit in July saying that Meta’s acquisition of Within would “tend to create a monopoly” in the market for VR-dedicated fitness apps.

The regulator argues that the proposed deal would “substantially lessen competition or tend to create a monopoly” in that market. read more

Meta, in court documents, has argued that “the FTC’s conclusory, speculative, and contradictory allegations do not plausibly plead any facts to establish that any supposed market for VR Deliberate Fitness apps is ‘oligopolistic’ as to either behavior or structure.” read more

Facebook agreed to buy Within in October 2021 for an undisclosed sum.

Reporting by Ismail Shakil in Ottawa; Editing by Aurora Ellis

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Google faces $25.4 billion damages claims in UK, Dutch courts over adtech practices

The Google name is displayed outside the company’s office in London, Britain, November 1, 2018. REUTERS/Toby Melville/File Photo

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BRUSSELS, Sept 13 (Reuters) – Alphabet unit Google (GOOGL.O) will face damages claims for up to 25 billion euros ($25.4 billion) over its digital advertising practices in two suits to be filed in British and Dutch courts in the coming weeks by a law firm on behalf of publishers.

Google’s adtech has recently drawn scrutiny from antitrust regulators following complaints from publishers. read more

The French competition watchdog imposed a 220-million-euro fine on the company last year while the European Commission and its UK peer are investigating whether Google’s adtech business gives it an unfair advantage over rivals and advertisers. [ read more

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“It is time that Google owns up to its responsibilities and pays back the damages it has caused to this important industry. That is why today we are announcing these actions across two jurisdictions to obtain compensation for EU and UK publishers,” Damien Geradin at law firm Geradin Partners said in a statement on Tuesday.

Google criticised the imminent lawsuits, saying that it works constructively with publishers across Europe.

“This lawsuit is speculative and opportunistic. When we receive the complaint, we’ll fight it vigorously,” a spokesperson said.

The British claim at the UK Competition Appeal Tribunal will seek to recover compensation for all owners of websites carrying banner advertising, including traditional publishers. Britain has an opt-out regime.

The Dutch claim is open to publishers affected by Google’s actions. Litigation funder Harbour is funding both lawsuits.

($1 = 0.9860 euros)

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Reporting by Foo Yun Chee; editing by Philip Blenkinsop and David Evans

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Bed Bath & Beyond CFO dies after falling from New York’s Jenga tower

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Sept 4 (Reuters) – Bed Bath & Beyond Inc’s (BBBY.O) chief financial officer fell to his death from New York’s Tribeca skyscraper known as the “Jenga” tower on Friday afternoon, police said on Sunday, days after the struggling retailer announced it was closing stores and laying off workers.

Gustavo Arnal, 52, joined Bed Bath & Beyond (BBBY.O) in 2020. He previously worked as CFO for cosmetics brand Avon in London and had a 20-year stint with Procter & Gamble (PG.N), according to his LinkedIn profile.

On Friday at 12:30 p.m. ET (1630 GMT), police responded to a 911 call and found a 52-year-old man dead near the building who suffered injuries from a fall. Police identified the man as Gustavo Arnal.

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The police statement did not provide further details on the circumstances leading to Arnal’s death and said the New York City Medical Examiner’s Office would determine the cause of death. Bed Bath & Beyond confirmed his death in a press statement on Sunday but gave no details.

The big-box chain – once considered a so-called “category killer” in home and bath goods – has seen its fortunes falter after an attempt to sell more of its own brand, or private-label goods.

Last week, Bed Bath & Beyond said it would close 150 stores, cut jobs and overhaul its merchandising strategy in an attempt to turn around its money-losing business.

It forecast a bigger-than-expected 26% slump in same-store sales for the second quarter and said it would retain its buybuy Baby business, which it had put up for sale. read more

Signage is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo

Arnal sold 55,013 shares in Bed Bath & Beyond in multiple transactions on Aug. 16-17, Reuters’ calculations showed based on SEC filings. The sales amounted to about $1.4 million, and Arnal still had almost 255,400 shares remaining.

On Aug. 23, the company, Arnal and major shareholder Ryan Cohen were sued over accusations of artificially inflating the firm’s stock price in a “pump and dump” scheme, with the lawsuit alleging Arnal sold off his shares at a higher price after the scheme.

The class action lawsuit listed Arnal as one of the defendants and was brought by a group of shareholders who claimed they lost around $1.2 billion.

The filing in the U.S. District Court for the District of Columbia alleged that Arnal “agreed to regulate all insider sales by BBBY’s officers and directors to ensure that the market would not be inundated with a large number of BBBY shares at a given time.”

The lawsuit also alleged that he issued materially misleading statements to investors.

The company said it was “in the early stages of evaluating the complaint, but based on current knowledge the company believes the claims are without merit.”

Shares in Bed Bath & Beyond have been highly volatile in recent months, being viewed as a so-called “meme” stock, which trade more on social media sentiment than economic fundamentals.

Cohen, a billionaire investor, disclosed a stake of nearly 10% in early March. Cohen’s RC Ventures disclosed plans to sell its stake on Aug. 17. read more

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Reporting by Kanishka Singh in Washington and Akriti Sharma in Bengaluru; additional reporting by Chuck Mikolajczak; Editing by Lisa Shumaker and Deepa Babington

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3M combat earplug lawsuits to proceed, judge rules, despite bankruptcy case

The logo of Down Jones Industrial Average stock market index listed company 3M is shown in Irvine, California April 13, 2016. REUTERS/Mike Blake

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Aug 26 (Reuters) – 3M Co must face more than 230,000 lawsuits accusing it of selling defective earplugs to the U.S. military, after a U.S. judge on Friday ruled that the bankruptcy of a subsidiary did not stop lawsuits against the non-bankrupt parent company.

Companies that file for bankruptcy typically receive an immediate reprieve from lawsuits, and 3M subsidiary Aearo Technologies LLC argued that extending those protections to 3M would buy Aearo time to address its debts and restructuring goals.

Aearo and 3M had argued that bankruptcy offered a faster and fairer way to compensate veterans who say that earplugs made by Aearo caused hearing loss.

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But bankruptcy Judge Jeffrey J. Graham in Indianapolis said that Aearo’s bankruptcy restructuring could proceed in parallel with the lawsuits.

While the “sheer size” of the consolidated litigation may have spurred 3M and Aearo to seek “additional leverage” through the bankruptcy proceedings, that did not create a legal need to protect 3M, Graham ruled.

Attorneys representing the veterans with hearing loss said they looked forward to continuing their lawsuits against 3M in other courts.

“Judge Graham’s decision is a complete rejection of 3M’s attempt to evade accountability and hide in bankruptcy,” plaintiff attorneys Bryan Aylstock and Christopher Seeger said in a statement.

A spokesman for 3M said it intended to appeal.

“Continuing to litigate these cases one-by-one over the coming years will not provide certainty or fairness for any party,” 3M spokesman Sean Lynch said.

3M subsidiary Aearo Technologies LLC filed for bankruptcy protection in Indiana on July 26, seeking to resolve lawsuits alleging that 3M’s Combat Arms Earplugs Version 2 (CAEv2) caused hearing loss.

Aearo will continue in the chapter 11 proceedings and 3M will continue to defend its position in the litigation, the company said in a statement late on Friday.

“3M continues to expect to complete the pending separation of its food safety business on the targeted closing date of September 1,” 3M added.

The lawsuits have been consolidated in federal court in Florida and have grown into the largest mass tort litigation in U.S. history. Aearo placed $1 billion in a trust to settle them and agreed to indemnify 3M for all liability related to CAEv2.

3M has denied liability, saying its earplugs offered protection to soldiers while allowing them to hear on the battlefield.

The Florida judge overseeing the earplug lawsuits, U.S. District Judge M. Casey Rodgers, has admonished 3M for “naked duplicity” in attempting to dump its liabilities into a bankrupt subsidiary.

3M and Aearo have in turn criticized Rodgers for allowing the consolidated litigation to balloon, pointing out that earplug cases now account for a whopping 30% of all cases pending in U.S. federal courts.

3M has lost 10 of the 16 cases that have gone to trial so far, with about $265 million being awarded in total to 13 plaintiffs.

3M’s stock price was down 12% Friday to $129.

Companies have in recent years increasingly used bankruptcy proceedings to protect non-bankrupt owners and affiliates from litigation, with Johnson & Johnson’s effort to offload lawsuits alleging that its talc-based baby powder caused cancer a recent example.

J&J has denied liability and said its talc-based baby powder is safe. The J&J affiliate’s bankruptcy case is under review, after cancer victims appealed a court ruling that blocked their lawsuits against J&J.

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Reporting by Dietrich Knauth; Additional reporting by Ann Maria Shibu in Bengaluru; Editing by Josie Kao, Alexia Garamfalvi and Rosalba O’Brien

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Meta’s Facebook agrees to settle data privacy lawsuit

A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier

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Aug 26 (Reuters) – Meta Platforms Inc’s Facebook has in-principle agreed to settle a lawsuit in the San Francisco federal court seeking damages for letting third parties including Cambridge Analytica access the private data of users, a court filing showed.

The financial terms were not disclosed in the filing on Friday that asked the judge to put the class action on hold for 60 days until the lawyers for both plaintiffs and Facebook finalize a written settlement.

The four-year-old lawsuit alleged that Facebook violated consumer privacy laws by sharing personal data of users with third parties such as the now-defunct British political consultancy Cambridge Analytica.

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Facebook has said its privacy practices are consistent with its disclosures and “do not support any legal claims”.

Facebook and its lawyers from Gibson, Dunn & Crutcher did not immediately respond to a request for more details regarding the settlement.

Of the two law firms representing the plaintiffs, Keller Rohrback did not comment while Bleichmar Fonti & Auld declined to comment.

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Reporting by Eva Mathews and Praveen Paramasivam in Bengaluru; Editing by Aditya Soni

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Twitter misled U.S. regulators on hackers, spam, whistleblower says

Aug 23 (Reuters) – Twitter Inc (TWTR.N) misled federal regulators about its defenses against hackers and spam accounts, the social media company’s former security chief Peiter Zatko said in a whistleblower complaint.

In an 84-page complaint, Zatko, a famed hacker widely known as “Mudge,” alleged Twitter falsely claimed it had a solid security plan, according to documents relayed by congressional investigators. Twitter’s shares fell 7.3% to close at $39.86.

The document alleges Twitter prioritized user growth over reducing spam, with executives eligible to win individual bonuses of as much as $10 million tied to increases in daily users, and nothing explicitly for cutting spam.

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Twitter labeled the complaint a “false narrative.” The social media company has been battling Elon Musk in court after the world’s richest person attempted to pull out of a $44-billion deal to buy Twitter. Musk said it failed to provide details about the prevalence of bot and spam accounts.

Tesla Inc (TSLA.O) Chief Executive Musk had offered to buy Twitter for $54.20 per share, saying he believed it could be a global platform for free speech.

Twitter and Musk have sued each other, with Twitter asking a judge on the Delaware Court of Chancery to order Musk to close the deal. A trial is scheduled for Oct. 17.

Zatko filed the complaint last month with the U.S. Securities and Exchange Commission and the Department of Justice, as well as the Federal Trade Commission (FTC). The complaint was also sent to congressional committees.

“We are reviewing the redacted claims that have been published but what we have seen so far is a false narrative that is riddled with inconsistencies and inaccuracies,” Twitter Chief Executive Parag Agrawal told employees in a memo.

The Senate Judiciary Committee’s top Republican, Chuck Grassley, said the complaint raised serious national security concerns and privacy issues and needed to be investigated.

“Take a tech platform that collects massive amounts of user data, combine it with what appears to be an incredibly weak security infrastructure, and infuse it with foreign state actors with an agenda, and you’ve got a recipe for disaster,” he said.

The FTC declined to comment. A spokesperson for the Senate Intelligence Committee said it had received the complaint and was setting up a meeting to discuss the allegation.

Twitter’s real regulatory risk lies in whether the documentary evidence shows “knowing or reckless misleading” of investors or regulators, said Howard Fischer, a partner at Moses & Singer and a former SEC attorney.

‘GIVE A LITTLE WHISTLE’

Musk could not be reached for comment but reacted on Twitter with memes and emoji of a robot. Musk’s legal team has subpoenaed Zatko, CNN reported after the whistleblower disclosure was made public.

American hackers have admired Zatko since the 1990s, when he was credited with inventing a tool to crack passwords. He later used his hacking chops to become a sought-after security consultant and with other rebellious techies of the era, transitioned to top government and boardroom positions.

The whistleblower document says that after the Jan. 6 riots, the incoming Biden administration offered him “a day-one appointed position as Chief Information Security Officer for the United States,” which he turned down.

Cybersecurity leaders expressed widespread support for Zatko, and many deplored Twitter’s reaction to his revelations.

Robert Lee, founder of industrial cybersecurity company Dragos, said it was “one of the very rare times based on who it is I don’t even need to know a detail to form an opinion,” he said on Twitter. “If Mudge is making this type of claim, it deserves the investigation.”

In January, Twitter said Zatko was no longer its head of security, two years after his appointment to the role.

On Tuesday, a Twitter spokesperson said Zatko was fired for “ineffective leadership and poor performance,” adding his allegations appeared designed to capture attention and inflict harm on Twitter, its customers and its shareholders.

Debra Katz and Alexis Ronickher, attorneys for Zatko, said in a statement that throughout his tenure at Twitter, he repeatedly raised concerns about inadequate information security systems to the company’s executive committee, CEO and board. Twitter did not respond to a request for comment on that statement.

(This story corrects closing price and removes extraneous percentage symbol in paragraph two)

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Reporting by Chavi Mehta, Ankur Banerjee and Tiyashi Datta in Bengaluru, Peter Henderson in Oakland and Raphael Satter in Washington; Additional reporting by Rick Cowan in Washington; Writing by Ankur Banerjee; Editing by Kenneth Li, Saumyadeb Chakrabarty, Sriraj Kalluvila and David Gregorio

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Musk sells Tesla shares worth $6.9 billion, cites chance of forced Twitter deal

Tesla CEO Elon Musk attends the Tesla Shanghai Gigafactory groundbreaking ceremony in Shanghai, China January 7, 2019. REUTERS/Aly Song

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Aug 10 (Reuters) – Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk sold $6.9 billion worth of shares in the electric vehicle maker, saying the funds could be used to finance a potential Twitter deal if he loses a legal battle with the social media platform.

“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” he said in a tweet late on Tuesday.

Musk in early July tore up his April 25 agreement to buy Twitter for $44 billion. Twitter has sued Musk to force him to complete the transaction, dismissing his claim that he was misled about the number of spam accounts on the social media platform as buyer’s remorse in the wake of a plunge in technology stocks. The two sides head to trial on Oct. 17.

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“Street will read through this poker move that chances of Twitter deal more likely now,” Dan Ives, an analyst at Wedbush Securities, tweeted.

In other comments on Twitter on Tuesday, Musk said “yes” when asked if he was done selling Tesla stock, and also said he would buy Tesla stock again if the Twitter deal does not close.

Tesla did not immediately respond to a Reuters request for comment.

Musk, the world’s richest person, sold $8.5 billion worth of Tesla shares in April and had said at the time there were no further sales planned. But since then, legal experts had suggested that if Musk is forced to complete the acquisition or settle the dispute with a stiff penalty, he was likely to sell more Tesla shares.

Musk sold about 7.92 million shares between Aug.5 and Aug.9, according to multiple filings. He now owns 155.04 million Tesla shares or just under 15% of the automaker according to Reuters calculations.

The latest sales bring total Tesla stock sales by Musk to about $32 billion in less than one year.

Tesla shares have risen nearly 15% since the automaker reported better-than-expected earnings on July 20, also helped by the Biden administration’s climate bill that, if passed, would lift the cap on tax credits for electric vehicles.

Musk also teased on Tuesday that he could start his own social media platform. When asked by a Twitter user if he had thought about creating his own platform if the deal didn’t close, he replied: “X.com”

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Reporting by Hyunjoo Jin in San Francisco and Akriti Sharma in Bengaluru; Additional reporting by Shubham Kalia and Shivam Patel; Editing by Edwina Gibbs

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Alex Jones must pay for Sandy Hook falsehoods, parents’ lawyer says as defamation trial begins

July 26 (Reuters) – U.S. conspiracy theorist Alex Jones led a “vile campaign of defamation” when he falsely claimed the 2012 Sandy Hook massacre was a hoax, a Texas jury was told on Tuesday, but a lawyer for Jones said his client already had paid a price.

Attorney Mark Bankston, representing the parents of slain 6-year-old Jesse Lewis, made the accusation at the start of a jury trial to decide how much Jones must pay for spreading falsehoods about the killing of 20 children and six staff at Sandy Hook Elementary School in Newtown, Connecticut, on Dec. 14, 2012.

Jones, founder of the Infowars radio show and webcast, had asserted the mainstream media and gun-control activists conspired to fabricate the tragedy. He had said the shooting was staged using crisis actors but later acknowledged it took place.

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“Mr. Jones was continually churning out this idea that Sandy Hook was fake,” Bankston told jurors. He said Jones and Infowars were responsible for the “most despicable and vile campaign of defamation and slander in American history.”

Neil Heslin and Scarlett Lewis, Jesse’s parents, are seeking $150 million in compensatory and punitive damages for what they say was a campaign of harassment and death threats by Jones’ followers.

Federico Reynal, an attorney for Jones, acknowledged that Infowars had spread false information but said his client had a right to question mainstream narratives on his show. He said Jones had lost millions of viewers since being deplatformed on social media in 2018.

“He regrets what he did, and he’s paying a price for it,” Reynal said.

Judge Maya Guerra Gamble in Austin, Texas, who is overseeing the trial, issued a rare default judgment in 2021, finding Jones liable without a trial after he flouted court orders and failed to turn over documents.

The defamation suit in Texas, where Infowars is based, is one of several brought by families of victims who say they were harassed by Jones’ followers and suffered emotional distress after he claimed the shooting was staged.

Jones and his company Free Speech Systems LLC are the defendants in the case.

The damages trial follows months of delays. Three entities related to Infowars filed bankruptcy in a since-dismissed case. The families of the Sandy Hook victims had said the bankruptcy was a sinister attempt by Jones to shield his assets from liability stemming from the defamation lawsuits.

Jones, who was present in the courtroom, is set to face trial in September in a similar defamation suit in Connecticut state court, where he has also been found liable for defamation in a default judgment.

The Sandy Hook gunman, Adam Lanza, 20, used a Remington Bushmaster rifle to carry out the massacre. It ended when Lanza killed himself with the approach of police sirens.

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Reporting by Jack Queen; Editing by Noeleen Walder and Howard Goller

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Tesla sued by former employees over ‘mass layoff’

A Tesla logo is seen in Los Angeles, California U.S. January 12, 2018. REUTERS/Lucy Nicholson/File Photo

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June 20 (Reuters) – Former Tesla Inc (TSLA.O) employees have filed a lawsuit against the U.S. electric car company alleging its decision to carry out a “mass layoff” violated federal law as the company did not provide advance notice of the job cuts.

The lawsuit was filed late Sunday in Texas by two workers who said they were terminated from Tesla’s gigafactory plant in Sparks, Nevada in June. According to the suit, more than 500 employees were terminated at the Nevada factory.

The workers allege the company failed to adhere to federal laws on mass layoffs that require a 60-day notification period under the Worker Adjustment and Retraining Notification Act, according to the lawsuit.

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They are seeking class action status for all former Tesla employees throughout the United States who were laid off in May or June without advance notice.

“Tesla has simply notified the employees that their terminations would be effective immediately,” the complaint said.

Tesla, which has not commented on numbers of layoffs, did not immediately respond to requests for comment about the lawsuit.

Musk, the world’s richest person, said earlier this month he had a “super bad feeling” about the economy and that Tesla needed to cut staff by about 10%, according to an email seen by Reuters. read more

More than 20 people identifying themselves as Tesla employees said they were laid off, let go or had positions terminated this month, according to online postings and interviews with Reuters. read more

The action filed by John Lynch and Daxton Hartsfield, who were fired on June 10 and June 15 respectively, seeks pay and benefits for the 60-day notification period.

“It’s pretty shocking that Tesla would just blatantly violate federal labor law by laying off so many workers without providing the required notice,” Shannon Liss-Riordan, an attorney representing the workers told Reuters.

She said Tesla is offering some employees only one week of severance, adding that she is preparing an emergency motion with a court to try to block Tesla from trying to get releases from employees in exchange for just one week of severance.

The suit was filed in the U.S. District Court, Western District of Texas.

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Reporting by Akriti Sharma in Bengaluru and Hyunjoo Jin in San Francisco; editing by Richard Pullin

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