Tag Archives: USATX

Biden administration denies Cheniere’s request to sidestep LNG pollution rule

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WASHINGTON, Sept 6 (Reuters) – The U.S. Environmental Protection Agency (EPA) said on Tuesday it has denied a request from leading liquefied natural gas (LNG) exporter Cheniere Energy Inc (LNG.A) to exempt turbines at its two U.S. Gulf Coast terminals from a hazardous pollution rule.

The rejection raises questions about whether the Texas-based company will have to reduce exports of the supercooled fuel to install new pollution control equipment at its facilities at a time that Europe is depending on increased shipments of LNG from the United States to offset cuts from Russia.

Europe is facing its worst-ever gas supply crisis, with energy prices soaring and German importers discussing possible rationing in the European Union’s biggest economy after Russia reduced gas flows westward. Moscow has cited a pipeline fault for the halt, but Europe sees it as apparent retribution for Western sanctions imposed on Russia for its invasion of Ukraine.

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“Though EPA is denying Cheniere’s request for a special subcategory to comply with the turbines rule, the Agency will continue to work with them and with other companies as needed to assure they meet Clean Air Act obligations,” EPA spokesperson Tim Carroll said in an email.

Owners and operators of gas turbines had a Sept. 5 deadline to comply with the National Emission Standards for Hazardous Air Pollutants (NESHAP), which the administration of President Joe Biden put into effect after an 18-year stay.

The rule imposes curbs on emissions of known carcinogens like formaldehyde and benzene from stationary combustion turbines, like those used by LNG facilities.

Cheniere had asked the Biden administration to exempt a specific kind of turbine that it installed at its LNG terminals from the NESHAP limits, arguing they would reduce shipments from the top U.S. exporter for an extended period and endanger the country’s efforts to ramp up supplies to Europe. read more

Cheniere was the only company to request such an exemption, according to the EPA. The company claimed the model of turbine it uses at its Texas and Louisiana facilities is the best technology for withstanding the types of storms that often strike the Gulf Coast, but that the equipment is also exceptionally hard to retrofit, and that engineering and installation of pollution controls could take years.

Cheniere spokesperson Eben Burnham-Snyder said that while the company “strongly disagrees” with the EPA’s decision, “we will work with our state and federal regulators to develop solutions that ensure compliance.”

He said the decision may result in “unwarranted expenditures” but added that coming into full compliance will not result in a material financial or operational impact and will not affect its ability to supply LNG to customers and countries around the world.

Gas-powered turbines emit formaldehyde and other dangerous pollutants through a chemical transformation that occurs when methane, the main ingredient in natural gas, is superheated.

Around 250 U.S. gas turbines are subject to the new rule, according to an EPA list, nearly a quarter of them Cheniere’s.

The Houston-based company accounts for around 50% of U.S. shipments of LNG abroad.

Ilan Levin, associate director of the Environmental Integrity Project, said the decision by EPA to deny Cheniere’s request was not a surprise because it had warned the company that it needed to meet the standard for years.

Reuters reported last month that the EPA had questioned Cheniere’s selection of gas turbines without adding pollution controls in 2011 and again in 2013. read more

“We applaud the EPA for enforcing the law and making sure the people living near these plants in the coastal bend and southeast Texas/southwest Louisiana get the same clean air protections as everybody else,” he said.

Cheniere shares closed 2.3% lower at $158.58 on Tuesday.

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Reporting by Valerie Volcovici in Washington and Nichola Groom in Los Angeles; Editing by Jonathan Oatis, Matthew Lewis and Himani Sarkar

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U.S. judge blocks Idaho abortion ban in emergencies; Texas restrictions allowed

FILE PHOTO – Abortion rights protesters participate in nationwide demonstrations following the leaked Supreme Court opinion suggesting the possibility of overturning the Roe v. Wade abortion rights decision, in Houston, Texas, U.S., May 14, 2022. REUTERS/Callaghan O’Hare

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Aug 24 (Reuters) – A federal judge on Wednesday blocked Idaho from enforcing a ban on abortions when pregnant women require emergency care, a day after a judge in Texas ruled against President Joe Biden’s administration on the same issue.

The conflicting rulings came in two of the first lawsuits over Biden’s attempts to keep abortion legal after the conservative majority U.S. Supreme Court in June overturned the 1973 Roe v. Wade decision that legalized the procedure nationwide.

Legal experts said the dueling rulings in Idaho and Texas could, if upheld on appeal, force the Supreme Court to wade back into the debate.

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About half of U.S. states have or are expected to seek to ban or curtail abortions following Roe’s reversal. Those states include Idaho and Texas, which like 11 others adopted “trigger” laws banning abortion upon such a decision.

Abortion is already illegal in Texas under a separate, nearly century-old abortion ban that took effect after the U.S. Supreme Court’s decision. Idaho’s trigger ban takes effect on Thursday, the same day as in Texas and Tennessee.

In Idaho, U.S. District Judge B. Lynn Winmill agreed with the U.S. Department of Justice that the abortion ban taking effect Thursday conflicts with a federal law that ensures patients can receive emergency “stabilizing care.”

Winmill, who was appointed to the court by former Democratic President Bill Clinton, issued a preliminary injunction blocking Idaho from enforcing its ban to the extent it conflicts with federal law, citing the threat to patients.

“One cannot imagine the anxiety and fear (a pregnant woman) will experience if her doctors feel hobbled by an Idaho law that does not allow them to provide the medical care necessary to preserve her health and life,” Winmill wrote.

The Justice Department has said the federal Emergency Medical Treatment and Labor Act requires abortion care in emergency situations.

“Today’s decision by the District Court for the District of Idaho ensures that women in the State of Idaho can obtain the emergency medical treatment to which they are entitled under federal law,” U.S. Attorney General Merrick Garland said in a written statement.

“The Department of Justice will continue to use every tool at its disposal to defend the reproductive rights protected by federal law,” Garland said. The DOJ has said that it disagrees with the Texas ruling and is considering next legal steps.

U.S. District Judge James Wesley Hendrix ruled in the Texas case that the U.S. Department of Health and Human Services went too far by issuing guidance that the same federal law guaranteed abortion care.

Hendrix agreed with Texas Attorney General Ken Paxton, a Republican, that the guidance issued in July “discards the requirement to consider the welfare of unborn children when determining how to stabilize a pregnant woman.”

Hendrix, an appointee of former President Donald Trump, said the federal statute was silent as to what a doctor should do when there is a conflict between the health of the mother and the unborn child and that the Texas law “fills that void.”

Hendrix issued an injunction barring enforcement of the HHS guidance in Texas and against two groups of anti-abortion doctors who also challenged it, saying the Idaho case showed a risk the Biden administration might try to enforce it.

Hendrix declined to issue a nationwide injunction as Paxton wanted.

Appeals are expected in both cases and would be heard by separate appeals courts, one based in San Francisco with a reputation for leaning liberal and another in New Orleans known for conservative rulings.

Greer Donley, an assistant professor at the University of Pittsburgh Law School and expert on abortion law, said that if the conflicting rulings were upheld the U.S. Supreme Court may feel pressured to intervene.

“Without a federal right abortion, this is the type of legal chaos that most people were predicting would be happening,” she said.

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Reporting by Nate Raymond in Boston; Additional reporting by Dan Whitcomb in Los Angeles; Editing by Grant McCool and Christopher Cushing

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Nate Raymond

Thomson Reuters

Nate Raymond reports on the federal judiciary and litigation. He can be reached at nate.raymond@thomsonreuters.com.

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Texas governor sends migrants to New York City as immigration standoff accelerates

NEW YORK, Aug 5 (Reuters) – Texas Governor Greg Abbott, a Republican, said on Friday he has started to send buses carrying migrants to New York City in an effort to push responsibility for border crossers to Democratic mayors and U.S. President Joe Biden, a Democrat.

The first bus arrived early on Friday at the city’s Port Authority Bus Terminal in midtown Manhattan carrying around 50 migrants from Bolivia, Colombia, Ecuador, Honduras and Venezuela. Volunteers were helping to steer people who had no relatives in town to city resources.

“Most of them don’t have anybody to help. They don’t know where to go, so we’re taking them to shelters,” said one volunteer at the bus station, Evelin Zapata, from a group called Grannies Respond.

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One family of four from Colombia, who ended up at a homeless intake center in the Bronx, were unsure of where they would spend the night. Byron and Leidy, both 28, said they left the country’s capital Bogota because they were having trouble finding work. They did not provide their last name.

“It’s a little easier to enter the country now, before it was very hard to come here with children,” said Leidy, who traveled with her kids Mariana, 7, and Nicolas, 13. She said the family had hoped someone they knew in New York would take them in, but that plan did not work out. “We came here because they said they would help us find a place to sleep to not have to stay in the street,” Leidy said.

Abbott, who is running for a third term as governor in November elections, has already sent more than 6,000 migrants to Washington since April in a broader effort to combat illegal immigration and call out Biden for his more welcoming policies. read more

Biden came into office in January 2021 pledging to reverse many of the hardline immigration policies of his Republican predecessor, former President Donald Trump, but some efforts have been blocked in court.

Abbott said New York City Mayor Eric Adams could provide services and housing for the new arrivals.

“I hope he follows through on his promise of welcoming all migrants with open arms so that our overrun and overwhelmed border towns can find relief,” Abbott said in a statement.

Arizona Governor Doug Ducey, another Republican, has followed Abbott’s lead and bused another 1,000 to Washington.

U.S. border authorities have made record numbers of arrests under Biden although many are repeat crossers. Some migrants who are not able to be expelled quickly to Mexico or their home countries under a COVID-era policy are allowed into the United States, often to pursue asylum claims in U.S. immigration court.

‘POLITICAL PAWNS’

Adams’ office has in recent weeks criticized the busing efforts to Washington, saying some migrants were making their way to New York City and overwhelming its homeless shelter system.

On Friday the mayor’s press secretary Fabien Levy said Abbott was using “human beings as political pawns,” calling it “a disgusting, and an embarrassing stain on the state of Texas.”

Levy said New York would continue to “welcome asylum seekers with open arms, as we always have, but we are asking for resources to help do so,” calling for support from federal officials.

White House press secretary Karine Jean-Pierre on Friday called the Texas initiative “shameful” and an unnecessary burden on taxpayers in that state.

Costs for the effort amounted to $1.6 million in April and May, a local NBC News affiliate reported in June, more than $1,400 per rider.

Texas officials declined to provide the cost when asked by Reuters.

Washington Mayor Muriel Bowser has also said her city’s shelter system has been strained by migrant arrivals and last month called on the Biden administration to deploy military troops to assist with receiving the migrants, a request that has frustrated White House officials. read more

A U.S. defense official, speaking on condition of anonymity, told Reuters that Defense Secretary Lloyd Austin had declined a request for D.C. National Guard to help with the transportation and reception of migrants in the city because it would hurt the troops’ readiness.

Bowser suggested on Friday that she would submit a more targeted troop request, reiterating her stance that the federal government should handle what she called a “growing humanitarian crisis.”

“If the federal government’s not going to do it, they need to at least get out of our way and give us the resources that we need,” she told reporters.

Many migrants are arriving after long and difficult journeys through South America.

Venezuelan migrant Jose Gregorio Forero said before traveling more than a day by bus from Texas he had crossed through eight countries. “It’s taken 31 days to get here, on foot and asking for rides,” he said, saying he was glad to be in New York where he thought there would be more job opportunities.

New York City, he said, “is very beautiful. I love it.”

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Reporting by Sofia Ahmed in New York and Ted Hesson in Washington; Additional reporting by Idrees Ali and Jeff Mason in Washington, Roselle Chen and Dan Fastenberg in New York; Editing by Mica Rosenberg and Daniel Wallis

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Jurors weigh punitive damages in Alex Jones Sandy Hook defamation trial

Aug 5 (Reuters) – Jurors in Texas on Friday were deliberating on how much Alex Jones should pay in punitive damages to the parents of a child killed in the 2012 Sandy Hook mass shooting for falsely claiming that the massacre was staged.

The parents of slain 6-year-old Jesse Lewis are seeking $145.9 million in punitive damages for the broadcaster’s falsehoods about the killing of 20 children and six staff at Sandy Hook Elementary School in Newtown, Connecticut, on Dec. 14, 2012.

“We ask that you send a very, very simple message, and that is: stop Alex Jones. Stop the monetization of misinformation and lies,” Wesley Todd Ball, a lawyer for the parents, told jurors before they began deliberations.

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An attorney for Jones, Federico Andino Reynal, asked jurors to return a verdict of $270,000 based on the number of hours Infowars devoted to Sandy Hook coverage.

The 12-person jury on Thursday said Jones must pay the parents $4.1 million in compensatory damages for spreading conspiracy theories about the massacre. That verdict followed a two-week trial in Austin, Texas, where Jones’ radio show and webcast Infowars are based.

Earlier on Friday, forensic economist Bernard Pettingill testified on behalf of Lewis’ parents that Jones “promulgated some hate speech and some misinformation” and “made a lot of money.”

Jones and Infowars are worth between $135 million and $270 million combined, Pettingill said.

Neil Heslin and Scarlett Lewis testified that Jones’ followers harassed them for years in the false belief that the parents lied about their son’s death.

Jones sought to distance himself from the conspiracy theories during his testimony, apologizing to the parents and acknowledging that Sandy Hook was “100% real.”

Jones’ company, Free Speech Systems LLC, declared bankruptcy last week. Jones said during a Monday broadcast that the filing will help the company stay on the air while it appeals.

The bankruptcy declaration paused a similar defamation suit by Sandy Hook parents in Connecticut where, as in Texas, he has already been found liable.

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Reporting by Jack Queen; Editing by Howard Goller and Mark Porter

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Jury finds Alex Jones must pay $4.1 million for Sandy Hook hoax claims

Aug 4 (Reuters) – U.S. conspiracy theorist Alex Jones should pay parents of a child killed in the 2012 Sandy Hook massacre at least $4.1 million for falsely claiming the shooting was a hoax, a Texas jury said on Thursday.

The verdict followed a two-week trial in Austin, Texas, where Jones’s radio show and webcast Infowars are based. The amount fell far short of the millions of dollars in compensatory damages that had been sought.

Neil Heslin and Scarlett Lewis, separated parents of slain six-year-old Jesse Lewis, testified that Jones’ followers harassed them and sent them death threats for years in the false belief that the parents were lying about their son’s death.

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The 12-person jury will next consider the parents’ request for punitive damages from Jones for spreading falsehoods about the killing of 20 children and six staff at Sandy Hook Elementary School in Newtown, Connecticut, on Dec. 14, 2012.

Those deliberations are expected to begin after both sides on Friday present arguments on Jones’ net worth.

The jurors, who voted 10-2 on compensatory damages, could still award the parents a large punitive damages verdict if they think Jones’ conduct was not highly damaging but worthy of punishment, legal experts said.

“We are very pleased with the verdict, and we are looking forward to the punitive damages phase that starts tomorrow,” Kyle Farrar, an attorney for the parents, said in an email.

Lawyers for Jones, who was not present in the courtroom while the verdict was read, did not immediately respond to a request for comment.

Trial consultant Jill Huntley Taylor said it is not uncommon for a jury to award higher punitive damages than compensatory ones.

“If jurors’ motivation for an award is their anger at the defendant, then they often award a bigger punitive damage number,” she said in an interview.

During closing arguments on Wednesday, Farrar urged jurors to end what he called their nightmare and hold Jones accountable for profiting off their son’s death.

‘100% REAL’

Federico Reynal, an attorney for Jones, acknowledged during his closing argument that Jones and Infowars reported “irresponsibly” on Sandy Hook but said his client was not responsible for the harassment.

Jones previously claimed that the mainstream media and gun-control activists conspired to fabricate the Sandy Hook tragedy and that the shooting was staged using crisis actors.

He later acknowledged that the shooting took place and sought to distance himself from previous falsehoods during the trial, telling jurors it was “crazy” of him to repeatedly make the claim that the shooting was a hoax.

He said that the shooting was “100% real.”

In a surprising development, Heslin and Lewis’ lawyers disclosed Wednesday that Jones’ lawyers had inadvertently sent them two years worth of his texts and failed to request them back in time.

Gamble on Thursday denied a motion for a mistrial by Jones’s lawyer who argued that attorneys for the plaintiffs should have immediately destroyed the records. The parents may now use the records as they wish.

Jones’ company, Free Speech Systems LLC, declared bankruptcy last week. Jones said during a Monday broadcast that the filing will help the company stay on the air while it appeals.

Judge Maya Guerra Gamble admonished Jones on Tuesday for not telling the truth about his bankruptcy and compliance with discovery during his testimony.

The parents’ lawyer also accused Jones of approaching the trial in bad faith, citing broadcasts where Jones said the trial was rigged against him and that the jury pool was full of people who “don’t know what planet they’re on.”

Heslin and Lewis joined other Sandy Hook parents in urging a judge to block Free Speech System from sending Jones or his companies any money until they get to the bottom of their finances. read more

The parents claim that Jones took $62 million from the company while burdening it with $65 million in “fabricated” debt owed to PQPR Holdings, a company owned by Jones and his parents.

Jones was set to stand trial in a similar suit in Connecticut in September, but that case is now on hold while the bankruptcy proceeds.

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 approaching sound of police sirens.

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Reporting by Jack Queen; editing by Amy Stevens, Noeleen Walder and Howard Goller

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Exclusive: Cassava Sciences faces U.S. criminal probe tied to Alzheimer’s drug, sources say

WASHINGTON, July 27 (Reuters) – The U.S. Justice Department has opened a criminal investigation into Cassava Sciences Inc (SAVA.O) involving whether the biotech company manipulated research results for its experimental Alzheimer’s drug, two people familiar with the inquiry said.

The Justice Department personnel conducting the investigation into Austin, Texas-based Cassava specialize in examining whether companies or individuals have misled or defrauded investors, government agencies or consumers, according to the sources, who spoke on condition of anonymity. The sources did not provide details of the focus of the probe and whether the department was looking into any specific individuals.

As in any Justice Department investigation, this one could lead to criminal charges or be closed without any charges being brought.

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In an emailed statement, Kate Watson Moss, a lawyer representing Cassava, neither confirmed nor denied the existence of the Justice Department criminal probe.

“To be clear: Cassava Sciences vehemently denies any and all allegations of wrongdoing,” Watson Moss said, adding that the company “has never been charged with a crime, and for good reason – Cassava Sciences has never engaged in criminal conduct.”

Watson Moss added that Cassava Sciences has received confidential requests for information from government agencies, but declined to identify those agencies. Watson Moss said that “Cassava Sciences has provided information in response to these requests in full satisfaction of its legal obligations.” Watson Moss added that no government agency has accused the company of wrongdoing.

A Justice Department spokesperson declined to comment.

The company already was facing scrutiny from the U.S. Securities and Exchange Commission and investors after two physicians from outside Cassava last year made allegations of data manipulation and misrepresentation involving research underpinning the company’s Alzheimer’s drug, called simufilam.

Cassava, a small company with about two dozen employees, in a statement last year called the allegations of data manipulation and misrepresentation “false and misleading.”

Cassava on its website describes simufilam as taking an “entirely new approach” to treating Alzheimer’s, the most common form of dementia and a progressive brain disorder that affects nearly 6 million Americans. The oral medication restores the normal shape and function of a key protein in the brain, the company said.

A PETITION TO THE FDA

The criminal investigation began, according to the sources, sometime after a petition was filed in August 2021 with the U.S. Food and Drug Administration by a lawyer on behalf of two physicians asking the agency to halt clinical trials of simufilam. The physicians are David Bredt, a neuroscientist formerly at Johnson & Johnson’s Janssen, and Geoffrey Pitt, a cardiologist who serves as director of Weill Cornell Medicine’s Cardiovascular Research Institute in New York.

The petition filed by Jordan Thomas, a New York-based lawyer representing both doctors, said Cassava’s published studies on clinical trials involving simufilam in various journals contained data misrepresentation and images of experiments that appeared to have been manipulated by photo-editing software. The FDA denied the petition and let the trials proceed.

Bredt and Pitt disclosed last November in an article published by The Wall Street Journal that they shorted Cassava’s stock, betting that the price would go down once investors learned of the manipulation they alleged. They later told The New Yorker magazine that they no longer have a short position in Cassava, a claim Reuters could not independently verify.

The short-selling represents “a major conflict of interest,” Watson Moss said in her statement to Reuters.

“Cassava Sciences is interested in helping those with Alzheimer’s disease, not an easy payday,” Watson Moss added.

STOCK DROP

Cassava’s stock fell precipitously following the petition filed with the FDA by Thomas, presenting an opportunity for Bredt and Pitt to profit on their bet against the company.

Thomas declined to comment on the matter.

The FDA in February said the so-called citizen petition filed by the two physicians urging it to launch an investigation into simufilam was not a proper avenue for such a request. Requests for the FDA to initiate an enforcement action, meanwhile, are “expressly excluded from the scope of the FDA’s citizen petition procedures,” the agency said, adding that it exercises its own discretion on such matters.

An FDA spokesperson declined to comment.

Cassava shares rose on Nasdaq from around $7 in January 2021 to above $135 in July 2021 on investor hopes that the company was on the verge of a breakthrough in treating Alzheimer’s. The stock plunged weeks later following word of the petition questioning Cassava’s research results.

The company’s shares closed at $21.72 on Tuesday.

Cassava has received more than $20 million from the U.S. National Institutes of Health to support developing simufilam.

The NIH told Reuters it does not discuss potential cases of research misconduct related to grants but that officials “take research misconduct very seriously. Research misconduct may distort NIH funding decisions, the overall integrity of the research we support and the public’s trust in science and resulting outcomes.”

Cassava also is facing the SEC investigation, the sources said. The Wall Street Journal last November first reported on the SEC probe, saying the agency was examining the claims made in the FDA petition. Reuters was unable to determine what specific claims, if any, drew the agency’s scrutiny.

An SEC spokesperson said the agency “does not comment on the existence or nonexistence of a possible investigation.”

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Reporting by Marisa Taylor in Washington and Mike Spector in New York; Editing by Will Dunham and Michele Gershberg

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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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U.S. Supreme Court declines to allow Biden’s shift on immigration enforcement

Migrants from Central and South America walk along a dirt trail after crossing the Rio Grande river into the United States from Mexico, in Roma, Texas, U.S., July 16, 2022. REUTERS/Adrees Latif

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WASHINGTON, July 21 (Reuters) – The U.S. Supreme Court on Thursday declined to reinstate President Joe Biden’s policy shifting the focus of America’s immigration enforcement toward public safety threats, handing a victory to Texas and Louisiana as they challenge a plan they call unlawful.

The justices on a 5-4 vote denied the Biden administration’s request to block a federal judge’s ruling that had prevented immigration officials from carrying out the enforcement guidelines while litigation over the legality of the policy continues. But the court said in a brief order that it would fast-track the Biden administration appeal and hear oral arguments in December.

Biden’s policy departed from the hard-line approach taken by the Democratic president’s Republican predecessor, Donald Trump, who sought to broaden the range of immigrants subject to arrest and removal. Biden took office last year promising a more humane approach to immigration.

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In announcing the new guidelines last September, Biden’s administration noted that U.S. officials have long relied on setting enforcement priorities due to the estimated 11 million immigrants living in the country illegally.

The policy would give agents more discretion to consider individual circumstances and prioritizes threats to national security or public safety.

Republicans have criticized Biden’s administration, saying fewer detentions and deportations have encouraged more illegal border crossings.

Texas and Louisiana sued in a federal court in Texas over Biden’s policy, arguing that under federal law officials lack discretion and are obligated to detain immigrants who commit a broad array of crimes or who have been ordered removed.

U.S. District Judge Drew Tipton agreed on June 10, suspending the policy nationwide. Tipton was appointed by Trump. read more

On July 6, the New Orleans-based 5th U.S. Circuit Court of Appeals refused to block Tipton’s ruling pending an appeal.

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Reporting by Andrew Chung and Lawrence Hurley; Editing by Leslie Adler and Jonathan Oatis

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Tesla profit tops target; Musk sees no demand problem

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

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July 20 (Reuters) – Tesla Inc (TSLA.O) on Wednesday reported a smaller-than-expected drop in quarterly profit as a string of price increases on its electric vehicles (EVs) helped offset production challenges caused by COVID-19 lockdowns in China.

Chief Financial Officer Zachary Kirkhorn said Tesla was still pushing to reach 50% growth in deliveries this year, adding that while the target had become more difficult, “it remains possible with strong execution.”

Chief Executive Elon Musk said he expects inflation to start easing by end-2022 and most commodity prices to stabilize.

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Tesla does not have a demand problem, but a production problem, Musk told a conference call. He dismissed the idea that global economic problems were hurting interest in Tesla, despite vehicle prices’ rising to what he called “embarrassing levels.”

The U.S. price of Tesla’s Model Y long-range version, now $65,990, is up more than 30% since the start of 2021.

Shares of Tesla were up about 1% in after-hours trade. The shares are down about 40% from their peak in November.

Tesla’s China factory ended the second quarter with a record monthly production level. Musk said new factories in Berlin and Texas aimed to produce 5,000 cars a week by the end of the year, adding that Berlin produced 1,000 cars a week in June.

Musk previously had said the new factories were “gigantic money furnaces” and that he had “a super bad feeling about the economy.” read more

Morgan Stanley analysts said in a report after Tesla’s earnings announcement that they see “near-term margin headwinds due to (new) challenges with ramping new production, particularly in Berlin”.

Tesla executives acknowledged some continuing tightness in supplies of older-generation microchips, but said there were no major problems in supplies of chips and batteries barring unforeseen COVID-related shutdowns.

The EV maker posted an adjusted profit of $2.27 per share for the quarter versus analysts’ consensus estimates of $1.81. This was down from $3.22 in the preceding quarter.

Its automotive gross margin fell to 27.9%, down from a year earlier and the preceding quarter, amid inflationary pressure.

Tesla’s total revenue fell to $16.93 billion in the second quarter from $18.76 billion a quarter earlier, ending its streak of posting record revenue in recent quarters.

Analysts were expecting revenue of $17.10 billion, according to IBES data from Refinitiv. read more

BITCOIN TO CASH

Tesla said it had converted approximately 75% of its bitcoin purchases into fiat currency, which added $936 million of cash to its balance sheet.

Musk said the sale was made to increase liquidity when Tesla was uncertain about how long the COVID lockdown in China would continue. Tesla has not sold any of its holdings of the Dogecoin cryptocurrency.

“This should be not taken as some verdict on bitcoin,” he said, adding that Tesla was open to increasing its cryptocurrency holdings in the future.

Musk had said in May last year that Tesla would not sell its bitcoin.

“The bitcoin losses point out an important part of the Tesla investment case – its eccentric owner. While Musk’s impressive innovation has served the company well, his personal flair is starting to raise governance questions,” said Laura Hoy, analyst at Hargreaves Lansdown.

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Reporting by Hyunjoo Jin in San Francisco and Nivedita Balu in Bengaluru ; Editing by Anil D’Silva, Peter Henderson, Matthew Lewis, Leslie Adler and Himani Sarkar

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Suspected truck driver in Texas migrant deaths was on meth, lawmaker says

  • 53 migrants died in U.S. border smuggling attempt
  • Suspected driver charged with human trafficking offense
  • Driver had meth in his system, lawmaker and U.S. official say

SAN ANTONIO, June 30 (Reuters) – The suspected driver of a truck packed with dozens of migrants who died in blazing heat during a Texas smuggling attempt was allegedly under the influence of methamphetamine when police encountered him, a U.S. lawmaker told Reuters, citing information from law enforcement.

San Antonio police officers found Homero Zamorano Jr, a Texas native, hiding in brush near the abandoned tractor-trailer on Monday, according to documents filed in federal court on Thursday. Fifty-three migrants lost their lives, making it the deadliest such trafficking incident on record in the United States.

U.S. Representative Henry Cuellar, a Democrat whose district includes the eastern part of San Antonio, told Reuters on Thursday that Zamorano was found to have had methamphetamine, a powerful synthetic drug, in his system.

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Cuellar said he was briefed on the matter by U.S. Customs and Border Protection (CBP), but did not know how authorities made that determination. A CBP official, speaking on the condition of anonymity, separately told Reuters that Zamorano had methamphetamine in his system.

Reuters was not immediately able to independently confirm the accounts of the alleged drug use.

Zamorano, 45, appeared in federal court in San Antonio on Thursday where human trafficking charges against him were read. If convicted, he faces a maximum sentence of life in prison or the death penalty and up to a $250,000 fine, he was told.

He was accompanied by public defender Jose Gonzalez-Falla, who declined to comment on the case. U.S. Magistrate Judge Elizabeth Chestney said Zamorano would be held in custody until his next hearing, on July 6.

Officials described finding the trailer’s rear door ajar with bodies stacked inside that were hot to the touch. In nearby brush, officers discovered other victims, some deceased. They found Zamorano hiding near the victims and escorted him to a local hospital for medical evaluation, prosecutors said. Mexican officials said he had tried to pass himself off as one of the survivors.

‘WHERE YOU AT?’

The truck had been carrying migrants from Mexico, Guatemala, Honduras and El Salvador and was found in a desolate, industrial area near a highway on the outskirts of the U.S.-Mexico border.

Temperatures in the area that day had soared as high as 103 Fahrenheit (39.4 Celsius), and authorities called to the scene found no water supplies or signs of working air-conditioning inside the cargo trailer.

Prosecutors allege Zamorano conspired with Christian Martinez, 28, who was also charged with a human trafficking offense. Martinez on Monday sent a photo of a truck load manifest to Zamorano, who responded by saying, “I go to the same spot,” a federal investigator wrote in a court filing Wednesday.

Martinez repeatedly messaged Zamorano in the hours after but received no reply, wrote Nestor Canales, a special agent with Immigration and Customs Enforcement’s (ICE) investigations division. Martinez sent messages including “Call me bro” and “Wya bro,” meaning “where you at,” Canales wrote.

A confidential informant for ICE and the Texas police spoke with Martinez after the incident, Canales wrote. Martinez told the informant, “The driver was unaware the air conditioning unit stopped working and was the reason why the individuals died,” Canales added.

Reuters was unable to reach Martinez for comment. Martinez, who is in official custody, made an initial appearance in a court in the Eastern District of Texas on Wednesday.

‘STASH HOUSE’

Along with 27 Mexicans, the victims included 14 Hondurans, eight Guatemalans and two Salvadorans, Mexican and Guatemalan officials said. Others, including minors, remain hospitalized.

A spokeswoman for Guatemala’s foreign ministry told Reuters it was unclear whether two of the Guatemalans identified Thursday had died on Monday or at a later date.

Among the dead were Pascual Melvin Guachiac, 13, and Juan Wilmer Tulul, 14, both from Guatemala, the country’s foreign ministry wrote on Twitter.

The two were cousins who left home two weeks ago to escape poverty, Guachiac’s mother was quoted as saying by Guatemalan media. read more

Also among the victims was Yazmin Nayarith Bueso, who left Honduras nearly a month ago. Her brother said she had gone a year without a job. “She looked and looked and couldn’t find anything, and became desperate,” Alejandro Bueso told a Honduran television program on Thursday.

Officials believe the migrants boarded the truck on the U.S. side of the border with Mexico.

Surveillance photographs captured the truck passing through a border checkpoint at Laredo, Texas, at 2:50 p.m. CT (1950 GMT) on Monday, before the migrant passengers are believed to have boarded.

Cuellar, the Texas lawmaker, said the migrants had likely crossed the border and gone to a “stash house” before being picked up by the trailer and passing the Encinal checkpoint. They likely then went into San Antonio and experienced mechanical issues that left them in the back of the truck without air conditioning or ventilation, Cuellar said.

Another truck carrying migrants headed for San Antonio evaded the Encinal checkpoint on Thursday, crashing into the back of a tractor-trailer after a chase and killing four on board, according to Mexican authorities. read more

Two other men suspected of involvement in Monday’s incident, Mexican nationals Juan Claudio D’Luna-Mendez and Francisco D’Luna-Bilbao, were charged on Tuesday in U.S. federal court with possessing firearms while residing in the country illegally. A preliminary hearing for the pair is set for Friday.

D’Luna-Mendez’s attorney, Michael McCrum, said his client is a 21-year-old carpenter who has been in the U.S. since childhood and had “nothing to do with” the tragedy. McCrum said he believed the other man charged was his client’s father.

Charging documents in the case said the truck’s registration was tracked to the men’s address. “They are arresting anyone they can,” McCrum said.

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Reporting by Jason Buch and Julio-Cesar Chavez in San Antonio, Ted Hesson in Washington; Additional reporting by Gustavo Palencia in Tegucigalpa, Sofia Menchu in Guatemala City and Kylie Madry in Mexico City
Writing by Rami Ayyub; Editing by Mica Rosenberg, Aurora Ellis and Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

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