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Hollywood Studios CEOs Turn on Each Other; No End to Strikes in Sight
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Citizen Frank

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Amid growing speculation of internal divisions within the C-suites and a lack of any apparent path forward to end the writers and actors strikes, the chiefs of Hollywood’s biggest studios are set to gather today.

Disney’s Dana Walden and Alan Bergman, Amazon Studios’ Mike Hopkins and Jennifer Salke, Netflix’s Ted Sarandos, Universal’s Donna Langley, and Warner Bros Discovery’s David Zaslav are among those scheduled to attend the virtual sit-down later Wednesday, we hear.

Mouse House CEO Bob Iger will not be participating in this meeting, reverting to his earlier stance of having Walden and Bergman be primarily hands-on over the labor actions. Part of that for Iger, we understand, was an overall CEO approach to keep some distance to be ready for the appropriate time to get more directly engaged.

It is unclear whether AMPTP President Carol Lombardini will be present at this afternoon’s meeting.

As the blowback intensifies from the disastrous August 22 meeting with Iger, Sarandos, Langley, Zaslav, the AMPTP’s Lombardini and WGA negotiators, and subsequent release of the studios’ latest proposal, there are no new talks set with the guild. Add to that the WGA rejection the deal and on August 24 calling it “neither nothing, nor nearly enough,” mistrust between the parties is at an all-time high, we hear. That translates into the WGA and the AMPTP being nowhere near a deal to end the 121-day scribes strike — not to mention the SAG-AFRTA strike, which is in Day 48.

The AMPTP said it is waiting the official response from the WGA to the August 11 offer. The guild says it made a counter on August 15 and that the ball is in the studios and streamers’ court.

All of which means, newly hired crisis PR firm the Levinson Group might find that its principal task right out the gate is handling the tension between studio CEOs as the writers strike goes deep into its fourth month.

“Before some wanted to blame Carol, accused her of being stuck using a pre-streaming playbook,” an individual familiar with the divisions among the studio and streamers bosses. “Now that have only themselves to blame for how bad things look. That’s why they brought in the Levinson Group, and that’s why they are squabbling.”

According to several sources, for instance, it was streaming kingpin Sarandos who lectured WGA leaders at that gathering last week about why they had to take the AMPTP’s latest offer. Others say that, while Sarandos certainly wasn’t pliant, it was Iger who was “the loudest voice in the room” with the other CEOs and the WGA brass on August 22. “That approach spectacularly flamed out, and then they made it worse by putting their offer out in public the same night,” one industry vet states of the outcome of the studio bosses’ browbeating meeting with guild leaders and the attempt to go around the WGA negotiating committee directly to members.

In particular, “thin skinned” Iger and Zaslav are “stunned,” according to one insider, that they have been so vilified by the guild and its members over the past several months. “Almost everyone is looking for someone to blame,” another insider says of the backbiting among the core CEOs. “They’re paralyzed, even as the clock is ticking, and it’s Ted’s fault, Iger’s fault, even Tony Vinciquerra’s fault, depending on who you ask,” the source added, name-checking the Netflix co-CEO, the Disney CEO and the Sony Pictures chair and CEO. “It’s not helping the situation, or anyone.”

Today’s get-together is in part to ensure that CEOs don’t stumble into a position where they’re negotiating against themselves. While there have been reports out there that Netflix is willing to bend toward the WGA on every point, others say that Hollywood’s top brass are on the same page when it comes to their approach with the guilds.

Additionally, the fear for some major studio brass is that if even if there is a deal in the coming weeks and production resumes on movies in the new year, a dry spell in the theatrical release calendar will exist, much in the way it did last year between August and October due to the post-production logjam created by Covid. Some movies on the near horizon for Q4 and Q1 are in need of ADR and, if the strikes continue, could get pushed. For Hollywood’s top leaders, the longer the strikes go on, less product in both film and TV is apt to be made in the next calendar year. Less product means fewer jobs.

“These guys are worried about what comes next, after the strike,” another well-placed source states. “Remember, they’re competitors, they’re always thinking about how to best each other. The strikes don’t change that.”

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Read 95 Comments
  • Avatar Heywould Jablowme says:

    Who the F cares??!!!

  • Avatar Rosalee says:

    Hollywood, becoming part of the “crime” that they have let “grow” now has come to their DOOR…. Now is the time for California and the elite, to taste the “fear” they stood up for in the effort to “defund” the police. What goes around, comes back to haunt…

  • Avatar Dr. Klopek says:

    Good. Serves them right. Go woke, go broke.

  • Avatar RAY SAY says:

    Hell is coming for Hollywood

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    RESULTS: Primary Election Night

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    With fewer than 175 days until Election Day, voters in three more states cast ballots in primaries on Tuesday — including in several contentious intraparty contests set to determine the likely victor in red states come November.

    This round, voters in Maryland, West Virginia, and Nebraska chose which candidates should carry their respective party’s banner into November while adding more delegates to former President Donald Trump and President Joe Biden’s tallies ahead of this summer’s conventions in Milwaukee and Chicago.

    WEST VIRGINIA – Polls Close at 7:30 p.m. ET

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    At least one U.S. House primary remained contentious through primary day, with GOP Rep. Carol Miller facing a challenge in the First Congressional District from Derrick Evans, a former member of the state legislature who stepped down after he was arrested and plead guilty for participating in the events of January 6, actions for which he apologized upon completion of his sentence.

    In the Second Congressional District, a handful of candidates including State Treasurer Riley Moore, a warrior against ESG on behalf of his state’s investors and industry, are running to replace incumbent U.S. Rep Alex Mooney who is on Tuesday’s ballot in the U.S. Senate primary.

    The Republican primary for governor is also a tight race, with Moore Capito — the son of U.S. Senator Shelley Moore Capito — and Attorney General Patrick Morrisey battling it out with a slim margin between them ahead of Tuesday’s election. One Democrat, Steve Williams, is running unopposed

    MARYLAND – Polls Close 8:00 p.m. ET

    At the top of the ticket, Democrats will allocate 95 delegates to their national convention this August while there are 37 delegates at stake in the Republican presidential primary.

    In the race to fill the U.S. Senate seat being vacated by retiring Sen. Ben Cardin, the leading two candidates — U.S. Rep. David Trone and Prince George’s County Executive Angela Alsobrooks — are fighting it out for their party’s nomination.

    Across the aisle, former Governor Larry Hogan is expected to lock up the GOP nomination for the U.S. Senate race, setting up a likely harder-than-Democrats-wanted contest in November.

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    The incumbent in the special, Sen. Pete Ricketts, was appointed by Gov. Jim Pillen in 2022 but now faces two Republican challengers in Tuesday’s special primary.

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    Takeaways from Michael Cohen’s Cross-Examination in The Trump Hush Money Trial

    Citizen Frank

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    Donald Trump’s attorney Todd Blanche began his confrontation with Michael Cohen on Tuesday by throwing the former fixer’s language back in his face.

    Blanche confirmed the two had never spoken, but asked Cohen whether he knew who he was already, since Cohen “went on TikTok and called me a crying little sh*t” just before the trial began.

    “Sounds like something I would say,” responded Cohen, Trump’s former lawyer and fixer.

    The question set the tone for the cross-examination of the Manhattan district attorney’s key witness in the hush money trial against the former president. For roughly two hours, Blanche began a cross-examination to try to discredit Cohen’s allegations against Trump.

    But after the initial fireworks over Cohen’s TikTok post, much of his cross-examination Tuesday was more subdued, as Blanche quizzed him on the many compliments he gave Trump when he was still a loyal fixer and the money he’s made from books and podcasts since turning against him. Cohen did not get rattled when his nasty statements were read back to him, and Trump hardly reacted to his lawyer’s interrogation.

    Still, there’s a long way to go – Blanche indicated the cross-examination would continue through most of the day Thursday, when court resumes.

    Over two days, Cohen has detailed the hush money scheme involving adult film actress Stormy Daniels before the 2016 election, walked the jury through the $130,000 he paid at Trump’s direction and described his fallout with the former president. Cohen’s testimony ties together the prosecution’s allegations that Trump broke the law by falsifying business records to reimburse Cohen and conceal the payment. Trump has pleaded not guilty and denies having an affair with Daniels.

    If Cohen gets off the stand Thursday, the prosecution appears poised to rest its case against Trump. Assistant District Attorney Joshua Steinglass confirmed to Judge Juan Merchan on Tuesday that Cohen is the final witness for the prosecution.

    Blanche tries to use Cohen’s words to discredit him

    Blanche’s opening question was just the first in a series of colorful quotes from Cohen that Blanche raised to jurors to try to paint Cohen as someone who hated Trump and who was hellbent on getting revenge while making money off the former president and trying to get his prison sentence reviewed.

    Blanche had plenty of material to work with. Cohen has written two books, “Disloyal” and “Revenge,” and has recorded hundreds of podcasts – confirming he mentions Trump in every episode of “Mea Culpa.”

    Regarding Cohen’s first podcast in 2020, Blanche asked whether he called Trump a “boorish cartoon misogynist.”

    “Sounds like something I would say,” Cohen responded again.

    Blanche then asked whether Cohen called Trump a “Cheeto-dusted cartoon villain.”

    “That also sounds like something that I said,” Cohen said.

    Blanche fired more lines at Cohen, asking whether he said on his podcast in 2020: “I truly f***ing hope Donald Trump ends up in prison.”

    “Sounds more like my language on ‘Mea Culpa,’” Cohen responded.

    Blanche then asked Cohen to listen to audio from the podcast, which Cohen, the judge, the lawyers and Trump all put on headphones to hear.

    Blanche continued by asking Cohen how much money he had made from his books, his podcasts and the TikTok account he launched six months ago.

    The upshot of the questioning was that Cohen was making a living off attacking Trump after he lost his law license following his 2018 guilty plea to charges including campaign finance violations linked to the hush money scheme.

    Cohen tried to put another spin on it. Asked what his goal was of putting out a TikTok nearly every night, he said: “Build an audience, to create a community, to really vent because I have a difficult time sleeping, so I found an outlet.”

    The tug-of-war over Cohen’s words is sure to continue into Thursday as Blanche tries to convince the jury not to trust Cohen’s allegations related to the case itself.

    Blanche questions Cohen on his drastically shifting views about Trump

    Blanche took Cohen through the evolution of the former fixer’s feelings about Trump, pinpointing the shift from admiration to hatred in the summer of 2018, when Cohen turned on his former boss.

    Asked whether he was “obsessed” with Trump, Cohen said, “I wouldn’t say obsessed. I admired him tremendously.”

    He went on, “I can’t recall using that word. I wouldn’t say it would be wrong.”

    Cohen also used his admiration to try to explain his shift, responding to a series of questions about the nice things he had said about Trump by saying: “At that time I was knee-deep into the cult of Donald Trump, yes.”

    Blanche read a list of compliments Cohen paid Trump publicly in 2015 and 2016, including calling Trump “a good man,” “a man who cares deeply about his family” and “a man who tells it straight.”

    Throughout cross-examination Blanche asked Cohen pointed questions about when he was telling the truth or lying when it came to Trump.

    “You were telling the truth, correct?” Blanche asked in regards to the compliments Cohen gave Trump.

    “That’s how I felt,” Cohen said. “I was expressing my feelings, so yes, it would be the truth.”

    Cohen confirmed his feelings about Trump changed in the summer of 2018 around the time he pleaded guilty to federal charges.

    Trump’s attorney pushed Cohen on his motivations since turning on the former president, suggesting Cohen is now driven by revenge and money.

    Blanche quoted an excerpt of Cohen’s book “Disloyal” to him: “I wanted it all: power, the good life, public acclaim, fame, big deals, fast cars, private planes, the excess and glamor and zest for life.”

    “Those are my words, yes,” Cohen confirmed.

    There were no fireworks from Trump or Cohen on Tuesday afternoon during the cross-examination.

    Trump’s former fixer kept his measured manner for the more than two hours of questioning from Blanche. Trump, meanwhile, rarely engaged with Cohen’s testimony. He turned to Cohen initially when Blanche began but spent most of the time with his eyes closed, appearing to zone out, with his mouth hanging open at some points.

    Occasionally, Trump would look in Cohen’s direction, craning his neck at one point when Cohen was asked whether he lied to special counsel Robert Mueller’s office in 2018.

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    News

    Judge Rejects Hunter Biden’s Effort to Delay June 3 Trial on Gun Charges

    Citizen Frank

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    Hunter Biden’s legal team appeared to seek a delay for his impending June 3 trial date in Delaware, which was set by a federal judge two months ago.

    The first son was not in attendance Tuesday at the federal courthouse in Delaware’s largest city, Wilmington, but attorney Abbe Lowell as well as Special Counsel David Weiss were. Weiss sat in court taking notes during the proceedings.

    Special counsel attorney Derek Hines told the court the Biden matter is a “simple case,” and that he was prepared to go forward with U.S. District Judge Maryellen Noreika’s June 3 trial date.

    But Tuesday afternoon, Noreika rejected Hunter Biden’s request to delay the trial. His case will go to trial next month, according to the Associated Press.

    Hines predicted the trial would take less than a week.

    Lowell told Noreika, “We are not ready,” for that start date, which appeared to frustrate the judge. Noreika asked Lowell for an explanation, pushing back that the case is not complicated.

    Lowell said he is working on both Biden’s Delaware and California cases simultaneously, and instead proposed a September trial date in Wilmington.

    He indicated he plans to file an appeal by Wednesday with the Third Circuit seeking an injunction to block the trial from commencing before merit-based motions are worked through.

    A 56-page indictment against Biden was handed down in Los Angeles in December, which included felony charges and laid out his salacious spending habits and lifestyle while cataloging alleged related tax violations.

    In Delaware, other issues scheduled to be presented in court Tuesday pertained to admissibility of evidence. Both the defense and prosecution were reported to be preparing “in limine” motions to exclude certain information from the jury as part of a typical timeline in normal litigation.

    One argument from the special counsel’s office obtained by Fox News questioned why the jury should not hear the reasons Delaware state law enforcement did not charge Biden with a 2018 count relating to the first son’s application for and possession of a firearm while using controlled substances.

    Another court document reflected evidence from the 2018 police report in which Beau Biden’s widow Hallie, who was in a relationship with Hunter at the time, purportedly tossed the gun in a trash receptacle near the A.I. duPont High School in Greenville, Del.

    On Thursday, a federal appeals court decided against tossing the gun charges after Biden asked the Philadelphia-based Third Circuit to dismiss them.

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    8 Killed, 45 Injured After Bus Carrying Migrant Workers in Florida Hit by Drunk Truck Driver

    Citizen Frank

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    A man has been arrested for eight counts of DUI manslaughter after eight migrant workers were killed and dozens of others were injured with a bus and a pickup truck collided in Marion County on Tuesday morning, officials said.

    The Florida Highway Patrol said the crash happened shortly after 6:30 a.m. on SR-40, west of SW 148 Court, on the outskirts of Dunnellon.

    During a news conference, troopers said a 2010 retired International school bus, transporting 53 farmworkers, was traveling westbound on SR-40. For unknown reasons, officials said a 2001 Ford Ranger truck traveling eastbound on the same road collided with the bus in a sideswipe manner.

    After the collision, the bus traveled off the roadway through a nearby fence, struck a tree and overturned, FHP Lt. Patrick Riordan told reporters.

    The driver of the private Ford Ranger truck, Bryan Maclean Howard, 41, was arrested and charged with eight counts of driving under the influence – manslaughter, according to an update from Florida Highway Patrol.

    Over 40 people injured in the crash were taken to local hospitals, including the driver of the pickup truck. That person had serious injuries, FHP said.

    “Some of those are also in very serious condition. So there’s high probability this may be beyond eight fatalities,” Riordan said. “We do not get in a hurry to conclude what happened until we have all the facts. And with that, I can tell you that it’s going to be probably six months at least, before we conclude factually what transpired here today.”

    Marion County Sheriff Billy Woods said crews will investigate to see if weather played a factor in the crash.

    “That always a factor because, one, the time in the morning, you know, people claim the sun was in their eyes… it’s always a factor,” Woods said. “We have to look into it. We have to know if the roads were wet, what other circumstances out here. Was there something else that caused the crash? We don’t know right now.”

    FHP said the farmworkers were headed to a farm in the area when the crash happened.

    “We are a very big agricultural county. So this time of year, we always have migrant workers that are in our county that are on buses just like this,” Woods said.

    SR-40 is currently shut down from S.W. 180th Avenue Road to S.W. 140th Avenue. The Florida Department of Transportation (FDOT) said the area will be closed for an “extended period of time” as crews investigate.

    AdventHealth Ocala said they are providing the media staging area due to the crash scene being cleared. They issued the following statement about the incident:

    “Our prayers are with all those affected by the tragic bus accident in Ocala this morning. … Our immediate priority is to provide exceptional medical care to those injured, and compassionate support to our patients and their loved ones. We will continue to provide updates as more information becomes available.”

    According to Marion County Fire Rescue, 34 people were transported to local hospitals. Eight of them were listed in critical condition, while the other 26 had non-life-threatening injuries. AdventHealth Ocala added that two of the 16 patients brought to its hospital have been transferred to other facilities, and the remaining 14 patients are in the process of being discharged.

    Cannon Farms in Dunnellon shared the following statement on its Facebook page:

    “We will be closed today out of respect to the losses and injuries endured early this morning in the accident that took place to the Olvera Trucking Harvesting Corp. Please pray with us for the families and the loved ones involved in this tragic accident. We appreciate your understanding at this difficult time.”

    Alternate routes

    Drivers wishing to head eastbound on SR-40 can take U.S. 41 northbound to West CR-328, then take West CR-328 eastbound back to SR-40, FDOT said.

    Westbound SR-40 drivers can take West CR-328 westbound to U.S. 41, then take U.S. 41 southbound back to SR-40.

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    News

    US Suffers Radio Blackouts After Being Hit by Another Solar Storm, NOAA Says

    Citizen Frank

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    The sun released another powerful stream of energized particles toward Earth early Tuesday, causing blackouts over the U.S.

    The National Oceanic and Atmospheric Administration (NOAA) showed disruptions over all of North America at about 12:51pm ET.

    The solar flare, classified as an X8.8, was the the strongest to come from this cycle which started in 2017 – NOAA said it was a radio blackout level 3 (R3) on a scale from one to five.

    The stream launched from a sunspot that has been pummeling our planet for the last few days, which NOAA had said is the size of the spot that caused the worst solar storm in history.

    Space weather physicist Dr Tamitha Skov told DailyMail.com: ‘As for the big X-flare, it’s the biggest of the cycle thus far.

    ‘It would have been our first R4-level radio blackout, but it was partially blocked by the sun.

    ‘The region that fired the flare is now mostly behind the sun’s west limb so we can’t even see it anymore.’

    The current solar cycle started in mid-December 2016.

    ‘We are now in the solar maximum phase,’ Skov said.

    ‘It is hard to tell if we have passed through the peak of solar maximum or not. (I doubt it because I think this cycle will have two peaks, just like last cycle.) Time will tell.’

    The sunspot causing chaos in space is AR 3664, which grew to the size of the one that caused the 1859 Carrington event, which set telegraph stations on fire and cut communications worldwide.

    AR 3664 rotated out of the view from Earth Tuesday, but said goodbye with one final blast.

    Subatomic debris of electrons and protons from the flare could also hit our planet, which would cascade on the the surface.

    The particles have the ability to disrupt satellite communications, cause radiation hazard for astronauts and interfere with power grids on the ground.

    NOAA had predicted a 60 percent chance of that happening Tuesday.

    The event, called a radiation storm, is guided by a magnetic field that curls out of the sun into our solar system.

    As the sun rotates, the magnetic fields that emanate from it bend as they flow passed the planets in its orbit, creating a spiral structure known as the Parker Spiral.

    Charged particles from a solar flare can become caught in these spirals, shooting them around back to Earth — when they would have otherwise missed our planet.

    Tuesday’s flare follows days of solar activity that caused NOAA had warned could have been the worst solar storm in 165 years.

    The agency released a Severe (G4) Geomagnetic Storm Watch late Thursday the first time the alert has been issued in 20 years.

    Geomagnetic storms take place when high-energy particles released from solar flares ejected by the sun reach Earth.

    Shortly after the storm hit last Friday, farmers in Minnesota, Nebraska, and other parts of the American Midwest experienced satellite disruptions to the ‘global positioning system’ (GPS) equipment that they depend on for operating their equipment.

    Many farms now use GPS to more efficiently and precisely plant crops in straight rows, reducing errors like overlapping seed beds or gaps of unused soil.

    But the storm also brought stunning North Lights across the world.

    Million of Americans from Maine to Alabama were also able to see the natural light show.

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    News

    UPDATE: Red Lobster to File for Bankruptcy Next Week

    Citizen Frank

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    Struggling seafood restaurant chain Red Lobster is preparing to file for bankruptcy next week after abruptly closing at least 48 of its outlets across the US.

    Red Lobster is expected to file a chapter 11 bankruptcy petition in Orlando, Florida, before Memorial Day, according to The Wall Street Journal.

    The filing would allow the chain to restructure its debt, discard long-term contracts and renegotiate new leases.

    The chain ‘temporarily closed’ locations in Buffalo, Orlando, Jacksonville and other cities, and is auctioning off kitchen equipment and furniture, according to CNN, leaving workers scrambling to find new jobs.

    Red Lobster’s cash flows have been hit by expensive leases and high labor costs.

    It comes after the company last year reported record losses of $11 million, which its CFO partly blamed on its unlimited shrimp deal.

    The chain, which started as a single restaurant in Lakeland, Florida, in 1968 has around 650 locations across almost all states. It’s famous for its cheese-flavored biscuits.

    News of the bankruptcy was first reported by Bloomberg, which said the restaurant chain is taking advice from the law firm King & Spalding.

    Those familiar with the matter told the outlet the decision was yet to be finalized, but that bankruptcy would allow the company to continue operating.

    Red Lobster’s famous shrimp promotion came as it wanted to lure in more customers after significant losses of $5.4 million in the second quarter of 2023.

    But those plans backfired since the ‘all you can eat’ promotion was too generous.

    For just $20, diners could indulge in as much of the shellfish as they could stomach.

    The ‘Endless Shrimp’ offer was initially a special but in June it claimed a permanent spot on the Red Lobster menu. Foot traffic reportedly increased by 4 percent as a result.

    More people were ordering the Endless Shrimp than the company anticipated – likely because the deal went viral on social media platforms like TikTok, where people showed off how much they ate to get their money’s worth.

    ‘For those who have been in the US recently, $20 was very cheap. And the rationale for this promotion was to say we knew the price was cheap, but the idea was to bring more traffic in the restaurants,’ said CFO Ludovic Garnier in November.

    ‘But something which was different from our expectation is the proportion of the people selecting these promotions was much higher compared to expectation,’ he added.

    Eventually, the company bumped the price of their Endless Shrimp up to $25 in a bid to reclaim some of the losses.

    Red Lobster has had multiple owners in recent years. It was previously owned by the Darden restaurant group, which also owned Olive Garden, but was taken over by Golden Gate Capital in 2014.

    In 2020 it was purchased by Thai Union, which this year said its ‘ongoing financial requirements no longer align with Thai Union’s capital allocation priorities.’

    The closures have left its workers in a scramble to find employment, with many Red Lobster staff claiming they were laid off with no warning.

    One Tiktokker posted a stitched video that started with her talking through her day working at Red Lobster on Mother’s Day, before she complained about being laid off.

    She said in the video, posted with the caption ‘I got another job but still DAMN RED LOBSTER’: ‘Why was that my last shift working there?

    ‘I just got a phone call this morning saying out location is closed.

    ‘Y’all know Red Lobster was going bankrupt, they don’t have no money [sic] to be playing around and out location was… we wasn’t [sic] the best location, so it makes sense.

    ‘I ain’t gonna lie, if you work at Red Lobster, you need to start finding something else to do.’

    Another TikTokker posted a video of her sadly dancing through what appeared to be the stockroom of a Red Lobster location.

    The video was posted with the caption: ‘Trying to laugh through the pain.’

    Former Red Lobster workers also took to X to complain. One user said: ‘Im trying so hard to put on a smile right now. I feel like I could break at any moment.’

    Go deeper ( 3 min. read ) ➝

    News

    Powell Admits Inflation Higher than Thought — No Rate Cuts Now

    Citizen Frank

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    Federal Reserve Chair Jerome Powell reiterated Tuesday that inflation is falling more slowly than expected and will keep the central bank on hold for an extended period.

    Speaking to the annual general meeting of the Foreign Bankers’ Association in Amsterdam, the central bank leader noted that the rapid disinflation that happened in 2023 has slowed considerably this year and caused a rethink of where policy is headed.

    “We did not expect this to be a smooth road. But these [inflation readings] were higher than I think anybody expected,” Powell said. “What that has told us is that we’ll need to be patient and let restrictive policy do its work.”

    While he expects inflation to come down through the year, he noted that hasn’t happened so far.

    “I do think it’s really a question of keeping policy at the current rate for longer than had been thought,” he said.

    However, Powell also repeated that he does not expect the Fed to be raising rates.

    The Fed has been holding its key overnight borrowing rate in a targeted range of 5.25%-5.5%. Though the rate has been there since July, it is the highest level in some 23 years.

    “I don’t think that it’s likely, based on the data that we have, that the next move that we make would be a rate hike,” he said. “I think it’s more likely that we’ll be at a place where we hold the policy rate where it is.”

    Markets vacillated as Powell spoke around 10 a.m. ET and major averages were near breakeven approaching noon ET. Treasury yields edged lower, and futures traders slightly raised the market-implied probability of the Fed’s first rate cut coming in September.

    Powell’s comments mirrored sentiments he expressed during his May 1 news conference after the most recent Federal Open Market Committee meeting.

    The committee unanimously voted to hold the line on rates while also expressing that it had seen a “lack of further progress” on getting inflation back to the Fed’s 2% target, despite a series of 11 interest rate increases.

    Tuesday brought a fresh round of discouraging inflation data, when the Labor Department’s producer price index, a proxy for wholesale costs, rose a higher-than-expected 0.5% in April on the back of a surge in services prices.

    Though the index on its surface indicated further price pressures, Powell called the report “mixed” as some of the components showed easing movement.

    “Is inflation going to be more persistent going forward? … I don’t think we know that yet. I think we need more than a quarter’s worth of data to really make a judgement on that,” he said.

    Go deeper ( 2 min. read ) ➝

    News

    School Fires Teacher Who Went Viral With JK Rowling ‘Critical Thinking’ Video

    Citizen Frank

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    Warren Smith, a high school teacher and YouTuber renowned for his channel dedicated to critical thinking has been fired.

    Smith believes his dismissal is tied to his YouTube content, specifically a viral video that Elon Musk retweeted.

    The video showcases Smith’s commitment to critical thinking in the face of baseless accusations against “Harry Potter” author J.K. Rowling.

    Smith’s YouTube channel, called Secret Scholar Society, which promotes critical thinking and challenges conventional narratives, has evidently ruffled some feathers at his institution.

    The incident in question revolves around a classroom discussion earlier this year, during which Smith gently challenged a student who accused J.K. Rowling of being “bigoted.”

    Smith’s methodical approach encouraged the student to define what constitutes a bigoted opinion without imposing his own judgments, effectively teaching the student how to think, not what to think.

    “Do you still like [J.K. Rowling’s] work, despite her bigoted opinions?” the students asked.

    Smith responded, “So, let’s get specific though. Let’s define bigoted opinions. What opinions are bigoted? We’re going to treat this as a thought experiment. I’m not going to say what’s right or wrong or which way to think. The whole point is to learn how to think – not what to think.”

    Smith broke down the accusation, step by step, questioning the basis and validity of labeling Rowling’s views as transphobic. By the end of the discussion, it appeared the student had completely changed his stance.

    Watch the incredible exchange below:

    Elon Musk, recognizing the value of such an educational approach, shared the video with his millions of followers, commending the need for critical thinking skills among the youth.

    Musk wrote, “Critical thinking should be the first thing taught to kids.” The post was viewed 33 million times.

    However, three months after the video went viral, Smith found himself fired from his job.

    “Seven days ago, I was fired from my school after four years of teaching. I recorded this the following day to share my perspective – honestly & in good faith – to move forward and put this experience behind me. I have no desire to cause complications or bring unwanted attention to the school, so I will not divulge anything beyond that,” Smith wrote on X.

    “It is important to me to be able to speak truthfully and honestly about one of the most challenging periods in the story of my life, in order to move onto a new chapter. I hope all can respect one another’s privacy, freedom of speech, & treat each other with dignity – especially during such times,” he added.

    In a heartfelt video statement, Smith detailed his abrupt termination, expressing his shock and dismay at how swiftly and decisively it was executed.

    “It happened so quick. It happened like five minutes. There was really no conversation, so they clearly knew what they wanted to do,” he said.

    He also lamented the loss of his digital assets, including a book he had been writing for two years, as well as personal and financial information stored on his school computer.

    “I have devoted four years of my life to this school, and yesterday, it was like being a character in a video game and just being deleted,” he said.

    His removal was allegedly due to a breach of trust—yet Smith asserts that he has never once divulged confidential information or overstepped any legal boundaries set by the school.

    “The reason was, ‘We don’t trust you not to divulge information online or upload online.’ Well, I’ve never divulged anything. Dave Rubin, Dr. Drew, hours of podcasts, and not once did I ever cross any of the parameters that you laid out, that your lawyers laid out,” said Smith.

    However, Smith speculated that his termination might have been precipitated by the attention his video received after Musk’s retweet.

    “I understand if you disagree with me voicing opinions on YouTube or feeling like It’s easier just to get rid of that; I understand to get rid of a teacher like that. And I accept that,” said Smith.

    Elon Musk commented on this new development, saying, “Critical thinking inhibits indoctrination and schools have become indoctrination centers.”

    As more teachers face repercussions for fostering critical thinking and open dialogue, the future of education looks increasingly bleak. In today’s climate, encouraging people to think for themselves may just be the most radical act of all.

    Watch:

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    DOJ Requests Judge Order Steve Bannon to Begin Prison Sentence

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    U.S. officials on May 14 asked a federal judge to order Steve Bannon, an ex-adviser to former President Donald Trump, to prison.

    Mr. Bannon was convicted of contempt of Congress in 2022 and sentenced to four months in prison, but his sentence has been on hold due to his appeal of the conviction.

    A U.S. Court of Appeals for the D.C. Circuit panel on Friday upheld the conviction, ruling against Mr. Bannon.

    A lawyer representing Mr. Bannon said that he would be asking the full appeals court to consider the case, but U.S. Department of Justice (DOJ) lawyers said Tuesday that “there is no legal basis” to keep Mr. Bannon’s sentence on pause.

    “There is no longer a ‘substantial question of law that is likely to result in a reversal or an order for a new trial,’” they said, noting that the panel rejected all of Mr. Bannon’s arguments.

    The request was submitted to U.S. District Judge Carl Nichols, who stayed the sentence in 2022 because he found that Mr. Bannon was raising “a substantial question of law that is likely to result in a reversal or an order for a new trial.”

    The substantial question centers on how to determine if a defendant intentionally defies a congressional subpoena and what evidence the defendant should be able to introduce, Judge Nichols, an appointee of President Trump, said at sentencing. “This case also raises substantial questions about the effect of the congressional subpoena recipients, invocation of the Speech or Debate Clause, and questions regarding whether and to what extent the Committee was formed and operate[s] in compliance with its rules,” he said at the time.

    Mr. Bannon was subpoenaed by the since-disbanded U.S. House of Representatives panel investigating the Jan. 6, 2021, breach of the U.S. Capitol but declined to provide documents or testimony because he was directed by his lawyer not to comply. The lawyer said that President Trump invoked executive privilege, and the matter of privilege would have to be worked out before Mr. Bannon cooperated.

    “Long-standing constitutional principles, exhaustively recognized and identified by the Department of Justice for decades in binding opinions, make clear that any such definition when executive privilege has been invoked, violates the fundamental doctrine of separation of powers. It is the president’s or a former president’s prerogative to determine when and over what to invoke executive privilege and only a court, not a committee issuing the subpoena, can be the arbiter of whether executive privilege applies and how far its breadth extends,” David Schoen, who is representing Mr. Bannon, told The Epoch Times in an email.

    “It is unconscionable to hold a private citizen criminally liable for responding to a subpoena in the manner his lawyer told him is the only manner the law permits and especially when a constitutional principle like executive privilege is involved,” Mr. Schoen added.

    The appeals court panel said that the defense of citing legal counsel “is no defense at all.”

    “As both this court and the Supreme Court have repeatedly explained, a contrary rule would contravene the text of the contempt statute and hamstring Congress’s investigatory authority. Because we have no basis to depart from that binding precedent, and because none of Bannon’s other challenges to his convictions have merit, we affirm” the conviction, U.S. Circuit Judge Bradley Garcia, an appointee of President Joe Biden, wrote for the unanimous panel.

    There are two steps that Mr. Bannon can take following the rejection. He can ask the full appeals court to consider the case or hold an en banc session. He can also take the matter to the U.S. Supreme Court.

    Mr. Schoen said that Mr. Bannon and his representatives planned to ask the full appeals court to consider the case.

    The DOJ officials said that, regardless of which steps Mr. Bannon takes, he should be ordered to report to prison.

    They noted that federal law requires a person found guilty and sentenced to a term of imprisonment to be detained as an appeal is considered unless “the appeal is not for the purpose of delay and raises a substantial question of law or fact likely to result in reversal.”

    Officials did not challenge Judge Nichols’ initial finding that Mr. Bannon raised “a substantial question of law,” but stated that, in light of the new ruling, there is no longer such a question.

    “The D.C. Circuit rejected defendant’s appeal on all grounds, including the primary argument on appeal: the requisite mental state required for a contempt of Congress violation,” DOJ lawyers wrote. “Consequently, there is no longer a ‘substantial question of law that is likely to result in a reversal or an order for a new trial.’ Under these circumstances, the court ‘shall order’ defendant ‘be detained,’ so the stay of sentence must be lifted.”

    Judge Nichols has not yet reacted to the request.

    The appeals court panel stayed the issuance of its mandate until seven days after the disposition of a petition for rehearing or for rehearing by the full court. The DOJ acknowledged that stay but said it “does not divest” Judge Nichols of his authority to lift the stay of the sentence.

    Peter Navarro, another former adviser to President Trump, started serving his contempt of Congress sentence in March after U.S. District Judge Amit Mehta, an appointee of former President Barack Obama, denied his request to postpone the sentence pending appeal.

    The decision was upheld by the District of Columbia Court of Appeals and the Supreme Court.

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    DAY 2: Michael Cohen Testifies in Trump’s Hush Money Trial

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    Michael Cohen is testifying about invoices, check stubs and checks for 2017 — admitting that the description for the check stubs were false statements.

    He testified that payments earmarked by Donald Trump’s company as “legal retainers” were actually for “the reimbursement to me of the hush money fee” to Stormy Daniels, plus a bonus and other non-legal-related fees.

    Presumptive 2024 GOP presidential nominee Trump has pleaded not guilty to 34 counts of falsifying business records related to a $130,000 payment Cohen made to porn star Stormy Daniels ahead of the 2016 election.

    Follow live updates here.

    Trump Allies, Potential VP Contenders Attend Trial

    Trump’s unprecedented trial in Manhattan is featuring support from GOP lawmakers and politicians who have been floated as potential running mates for Trump’s 2024 run.

    Outside the courtroom Tuesday, Trump was flanked by North Dakota Gov. Doug Burgum, Florida Rep. Byron Donalds, Florida Rep. Cory Mills and former 2024 GOP contender Vivek Ramaswamy, all of whom are defenders of the 45th president and could be in the running as potential vice presidential picks. Speaker of the House Mike Johnson also notably appeared in support of Trump’s battle against 34 counts of falsifying business records, Fox News Digital reported.

    “Vivek is here right now, so he can speak for himself – he said, ‘This is a sham trial. It’s politically motivated. It’s an assault on the leading candidate for U.S. president.’… He’s going to talk to you. The speaker of the House is here. We have Byron Donalds, Cory is here. We have a lot of great people here to talk to you,” Trump said outside of the courtroom Tuesday.

    The lineup comes after the former president was joined Monday by Ohio Sen. JD Vance, who has also been floated as a potential running mate, New York Rep. Nicole Malliotakis, Alabama Sen. Tommy Tuberville, and his son Eric Trump. Eric Trump is also in court with his father again Tuesday.

    A Trump campaign official told Fox News Digital that the supporters all volunteered to join Trump in court to support their friend, and were not invited by the campaign.

    Appeals Court Denies Trump Gag Order Challenge

    A New York appeals court on Tuesday affirmed a gag order against former President Trump in his hush money criminal case.

    The order, imposed on Trump by Judge Juan Merchan, bars Trump from publicly commenting on witnesses, prosecutors, court staff or the judge’s family. It does not prevent him from attacking Merchan or Manhattan District Attorney Alvin Bragg (D).

    Trump has railed against his gag order as a violation of his First Amendment rights, arguing it prevents him from responding to political attacks being levied by high-profile witnesses and others.

    “Justice Merchan properly determined that petitioner’s public statements posed a significant threat to the integrity of the testimony of witnesses and potential witnesses in this case as well,” the decision from the five-judge panel reads.

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    Nonprofits Are Making Billions Off the Border Crisis

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    Communities throughout the United States are suffering while they try to find money to house, clothe, feed, educate, and provide medical care for millions of illegal immigrants caught and released into the country by President Joe Biden. However, the left-wing nonprofit organizations paid to serve migrants are profiting pleasantly.

    According to an examination by the Free Press of three of the most prominent nonprofit organizations paid by the Biden administration for migrant services, their revenues have more than tripled since 2018, and each of their CEOs makes more than $500,000 a year.

    One, Global Refuge, saw its revenue rise from $50 million in 2018 to more than $200 million in 2022. Documents show that Global Refuge housed more than 2,500 migrant children in 2019 at a cost of $30 million. It housed just 1,443 in 2022 at a cost of $82.5 million. In that same period, Global Refuge CEO Krish O’Mara Vignarajah saw her salary rise from $244,000 a year to $520,000. Before coming to Global Refuge, she served as former first lady Michelle Obama’s policy director.

    Another nonprofit group, Endeavors, was awarded more than 1 billion dollars in 2022, of which it spent $533,000 on a music therapist, $4.6 million on “consulting services,” $1.4 million on conferences, and $700,000 on lobbyists. Despite past scandals involving self-dealing among top executives, in 2022, Southwest Key Programs was awarded almost $800 million, of which it gave more than $1 million to its CEO.

    Each nonprofit organization benefits from the Department of Health and Human Services’s Unaccompanied Children Program. When children are caught illegally crossing the border without parents, Border Patrol must, by law, turn them over to HHS, whose Office of Refugee Resettlement is charged with housing, feeding, and educating them until their parents or a sponsor can be found. HHS does not provide these services. They contract with nonprofit outfits that do, hence the big payouts to Endeavors, Global Refuge, and Southwest Key Programs.

    Under the leadership of HHS Secretary Xavier Becerra, the Unaccompanied Children Program has been plagued by fraud and abuse. One director quit after Becerra threatened to fire her if she didn’t discharge children to sponsors faster.

    “If Henry Ford had seen this in his plants,” Becerra told ORR staff in 2022, “he would never have become famous and rich.” But the CEOs of the nonprofit organizations Becerra pays sure are getting rich.

    Profiteering at the nonprofit groups involved in the Unaccompanied Children Program is a tiny fraction of the problem. The Biden administration has opened the spending floodgates through many other federal programs including State Department funding for the United Nations’s Regional Refugee and Migrant Response Plan;

    Federal Emergency Management Agency funding for the Emergency Food and Shelter Program, which is not to be confused with FEMA funding for Shelter and Services Program; or HHS funding for refugee entrant and assistance programs. Billions of dollars flow from taxpayers to far-left nonprofit groups allegedly to provide services without oversight for millions of migrants.

    “We could afford to take, in a heartbeat, another 4 million people,” Biden said while campaigning for president in 2019. “The idea that a country of 330 million people cannot absorb people who are in desperate need and who are justifiably fleeing oppression is absolutely bizarre, absolutely bizarre.”

    It’s easy to afford the housing, food, education, and medical costs of millions of new migrants when you are spending other people’s money, as Biden always is. It is even easier to spend that money when you know it is going to your political allies. It is past time for Congress to cut off the border crisis gravy train.

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    Bad News for the Fed: Inflation Rose to 2.2%

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    Inflation, as measured by the producer price index, rose to 2.2% for the year ending in April, the Bureau of Economic Analysis reported on Tuesday.

    April marks the third straight rise in the headline inflation rate, the opposite of the trend sought by the Federal Reserve and a warning sign for President Joe Biden.

    Most economists had forecast annual inflation would tick up by this much, so the reading was in line with expectations.

    On a month-to-month basis, the price index increased by 0.5%, more than expected.

    “Net, net, inflation at the producer level is back on the front burner this month and consumers are sure to feel the heat as higher production costs will feed into the inflation they see in the goods and services they buy,” said Chris Rupkey, chief economist at FWDBONDS.

    Core PPI inflation, which strips out volatile food and energy metrics, rose to 2.4%, also in line with expectations.

    The Fed has raised its interest rate target to 5.25% to 5.50%, the highest since the dot-com bubble at the turn of the century.

    Recent inflation reports have come in hotter than anticipated, with the consumer price index rising to 3.5% in March. Because of the hotter inflation prints, coupled with the insulation of the strong jobs market, many investors began to expect that the Fed would hold off on cutting rates until after the November election.

    The labor market has remained above water despite the interest rate increases.

    But the most recent jobs report showed some signs of slowing down.

    The economy added 175,000 jobs in April versus 315,000 the month before, and the unemployment rate rose a tenth of a percentage point to 3.9%.

    Additionally, the number of new applications for unemployment benefits rose by 22,000 to 231,000 last week, the highest number of jobless claims in about nine months.

    The most recent data show job openings fell 3.7% in March to just under 8.5 million, the lowest level of openings since February 2021. The job opening numbers fell below expectations, continuing a trend of slowly declining job openings over the past few years.

    A softening labor market could cause the Fed to cut sooner rather than later, but if inflation remains elevated, the situation will be difficult for the central bank. Top Fed officials have said bringing inflation down to its normal level is its highest priority.

    Higher interest rates are bad news for Biden in an election year. Biden’s economic approval ratings have been hamstrung by high inflation coupled with the higher interest rate environment. Higher rates make things like buying a home or taking out a loan much more expensive for voters.

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    Judge Judy Sues National Enquirer Over False Story

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    Judge Judy wants inquiring minds to know that a recent National Enquirer article claiming she is seeking a new trial for the long-convicted Menendez brothers is “unequivocally false.”

    So false in fact, that longtime small screen magistrate is taking the Enquirer and InTouch Weekly owner Accelerate360 to court for defamation. The lawsuit that the never litigation shy Judy Justice host and her lawyer Eric M George filed today in state court in Florida seeks unspecified “general and special damages,” and a jury trial.

    Just because the damages aren’t specific, don’t think Judy Sheindlin is looking for pennies on the dollar.

    “When you fabricate stories about me in order to make money for yourselves with no regard for the truth or the reputation I’ve spent a lifetime cultivating, it’s going to cost you,” Judge Judy told Deadline this AM of the InTouch and Nation Enquirer articles of last month claiming she believed Lyle and Erik Menéndez had not received fair justice in their 1996 second trial for the murder of their parents in 1989. “When you’ve done it multiple times, it’s unconscionable and will be expensive. It has to be expensive so that you will stop.”

    The allegations by Roy Rosselló, a former member of boy band Menudo, in a recent Peacock Menendez + Menudo: Boys Betrayed docuseries that then RCA executive José Enrique Menéndez repeatedly raped him as a teen has put a new emphasis on the Menéndez brothers’ claims that the shotgun killing of their parents was to stop the ongoing sexual abuse in their Beverly Hills home and not to inherit millions. Netflix has announced they are working on a documentary about the incarcerated for life brothers, and of course Ryan Murphy is making the case the subject of the second installment of his hugely successful Monster franchise on the streamer with Monsters: The Lyle and Erik Menendez Story.

    Based in part on Rosselló’s statements and newly discovered family correspondence, lawyers for Lyle and Erik Menéndez filed a habeas petition in LA Superior Court earlier this month hoping to overturn the duo’s life sentences.

    None of this seems to have anything to do with Judge Judy – despite what InTouch and the National Enquirer have printed.

    “The article was unequivocally false,” proclaims the 20-page filing Monday by attorney George for Sheindlin. Identifying the embryotic source of the InTouch and Enquirer pieces as a Fox Nation documentary, today’s filing in the Sunshine State paints a picture that makes the A360 Media publications look dumb as well as deliberately defaming Judge Judy.

    “It entirely misquoted its source material, which identified the speaker of the challenged statements by name—an individual identified onscreen in the docuseries as ‘Judi Zamos,’ and as an ‘Alternate Juror, First Trial,’” this morning’s filing says of the InTouch article. “Judge Sheindlin has never gone by the name Judi Zamos, nor was she an alternate juror in the Menendez trial.”

    “After Plaintiff publicly indicated that she would seek to right the wrong done to her reputation, Defendants removed the April 10 article from the online edition of InTouch Weekly,” the document goes on to damningly state. “As of the date of this filing, however, the article continues to appear in internet search engine results and in other accounts controlled by Defendants, including the News Break account run by Defendants. Worse yet, as discussed below, Defendants subsequently chose to proceed with the publication of the defamatory piece, as a front-page story no less, in their April 22 National Enquirer print edition.”

    Now, as former CEO David Pecker made crystal clear in his recent testimony in Donald Trump’s so-called hush money trial, it’s not like the now Dan Dolan-run Enquirer hasn’t played fast and loose with the truth for a good headline before.

    Actually, it isn’t even the first time Judge Judy and the tabloid have gotten into a dust-up.

    Back in 2017 the Enquirer published a retraction of previously pieces stating that Sheindlin was suffering “from ‘brain disease,’ was ‘fighting’ both Alzheimer’s and depression, and is ‘hiding a heartbreaking medical crisis.’” Also portraying syndication superstar Sheindlin as unfaithful in her marriage and more, the Enquirer went on to say: “None of these statements are true, and we unequivocally retract them.”

    Now, Sheindlin, who saw a third season of of Judy Justice on Amazon Freevee debuted earlier this year and is heading to synodcation this fall, has rarely come up short in any of her off-screen legal tussles – just ask some ex-producers and packaging agents. Also, due to letters sent in the past few weeks, Accelerate360/A360 Media knew this lawsuit was coming and had an opportunity to take it all down online and offer a retraction – so this isn’t going to be friendly.

    That rancor will be even more pointed in the stark manner in which Sheindlin lays out how such potential defamation has hurt her, her media empire and her bank accounts.

    “By tarnishing Plaintiff’s reputation as a fair-minded and good judge of character and facts, Defendants’ lies have injured Plaintiff by deterring viewers from watching her shows,” today’s filing bluntly says.

    “These lies have injured and, as they continue to circulate, continue to and will injure, Plaintiff by discouraging parties from bringing their disputes before her because of the injury to Plaintiff’s reputation as a fair-minded and good judge of character and facts,” it adds. “These lies have injured and, as they continue to circulate, continue to and will injure, Plaintiff by injuring her reputation in legal circles, reducing her opportunities to pursue new contacts and businesses because of the injury to Plaintiff’s reputation as a fair-minded and good judge of character and facts.”

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    Kremlin Shake-Up: Another Top Russian Defense Ministry Official Is Arrested on Bribery Charges

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    A second senior Russian defense official was arrested on bribery charges, officials said Tuesday, days after President Vladimir Putin replaced the defense minister in a Cabinet shake-up that fueled expectations of more such purges.

    Lt. Gen. Yury Kuznetsov, the 55-year-old chief of the Defense Ministry’s main personnel directorate, was arrested in a raid early Monday on his suburban Moscow villa, Russian media reported. He was detained on charges of bribery and jailed pending an investigation and trial, according to the Investigative Committee, Russia’s top state criminal investigation agency.

    Kuznetsov is accused of accepting an “exceptionally large bribe,” a charge punishable by up to 15 years in prison. The committee alleged he received the bribe in his previous post as head of the military General Staff’s directorate in charge of preserving state secrets, a position he held for 13 years.

    In the raid, agents of the Federal Security Service, or FSB, broke down the doors and windows of his home while he was asleep, the reports said, seizing gold coins, luxury items and over 100 million rubles (just over $1 million) in cash.

    His wife, who previously worked in several Defense Ministry structures, was also reportedly interrogated.

    On Sunday, Putin reshuffled his Cabinet as he starts his fifth term in office, replacing Sergei Shoigu, who served as defense minister for 11 1/2 years, with Andrei Belousov, an economics expert and former deputy prime minister. Putin named Shoigu the secretary of Russia’s Security Council, a role roughly similar to the U.S. national security adviser, replacing Nikolai Patrushev.

    Patrushev, a hawkish and powerful member of Putin’s inner circle who held the job for 16 years, was appointed a presidential aide. Alexei Dyumin, the governor of the Tula region and often mentioned as a potential Putin successor, also was named a presidential aide.

    Patrushev will oversee Russian shipbuilding industries in his new job, but may later also deal with other duties, Kremlin spokesman Dmitry Peskov said Tuesday.

    He rejected notions that Shoigu’s reshuffle represented a demotion, describing his new role as a “very senior job with broad responsibilities.”

    While Shoigu, who had personal ties with Putin and accompanied him on vacations in the Siberian mountains over the years, was given a new senior position, the future of his close entourage in the Defense Ministry appeared in doubt under Belousov.

    Shoigu’s deputy, Timur Ivanov, was arrested last month on bribery charges and was ordered to remain in custody pending an official investigation. His arrest was widely interpreted as an attack on Shoigu and a possible precursor to his dismissal.

    The shake-up appeared to be an attempt to put the defense sector in sync with the rest of the economy and tighten control over soaring military spending amid allegations of rampant corruption in the top military brass.

    Speaking Tuesday at the upper house of parliament, Belousov said Putin has given him the task to more closely integrate the defense sector into the national economy.

    “It’s not an easy task, it’s comprehensive and primarily implies optimization of military spending,” he said. “First and foremost, optimization means increasing efficiency.”

    He credited Shoigu with overseeing the modernization of the military but emphasized the importance of attaining Russia’s goals in Ukraine with minimal casualties.

    Belousov also cited the need to increase supplies of modern artillery and missile systems, drones and electronic warfare assets. He said the military would continue bolstering its ranks with volunteers, noting there is no need for another round of mobilization.

    A partial mobilization of 300,000 reservists that Putin ordered in fall 2022 amid the military setbacks was widely unpopular, prompting hundreds of thousands to flee abroad to avoid being drafted.

    In an apparent jab at Shoigu and his entourage who were widely criticized by pro-Kremlin military bloggers of hiding setbacks in Ukraine from Putin, Belousov said he would proceed from the “ironclad principle: it’s possible to make mistakes but it’s inadmissible to lie.”

    Shoigu has been widely seen as a key figure behind Putin’s decision to invade Ukraine in February 2022, and many Russian hawks criticized him for overstating Russian military capabilities.

    He and the chief of the General Staff, Gen. Valery Gerasimov, had faced strong criticism from Russian hawks for military setbacks, including the failure to capture Kyiv early in the war and a Russian retreat from northeastern and southern Ukraine later that year.

    The shake-up came as Russian troops pressed new offensives, trying to take advantage of a slowdown in Western aid to Ukraine in what many observers see as a decisive moment in the war.

    The Kremlin sought to ease widespread bewilderment over choosing an economics expert with no military record as defense minister by emphasizing that Gerasimov, who directs the fighting in Ukraine, has kept his post.

    Peskov also dismissed the allegations that the shake-up and the arrests of senior Defense Ministry officials could disorganize the military and affect events in Ukraine.

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    Erdogan Converts Ancient Istanbul Church to Mosque

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    Turkish President Recep Tayyip Erdogan on Monday confirmed the reopening of a mosque in Istanbul converted from an ancient Byzantine Orthodox church, in the face of Greek protests.

    Erdogan discussed the church in a meeting in Ankara with Greek Prime Minister Kyriakos Mitsotakis on a trip that was meant to strengthen the countries’ relations.

    “The Kariye mosque in its new form will remain open to everyone,” Erdogan told a news conference alongside the Greek leader.

    “We have opened our Kariye mosque for worship and visits after painstaking restoration work.”

    Mitsotakis had appealed against the conversion of the Holy Saviour in Chora, decorated with 14th-century frescoes of the Last Judgement that are still treasured by Christians.
    He complained to Erdogan about the latest move.

    “I discussed with Mr. Erdogan the conversion… I expressed my dissatisfaction to him,” the Greek premier said after meeting with the Turkish leader.

    “It is very important to preserve the unique cultural value of this monument, which is listed as UNESCO world heritage, so that it can remain accessible to all visitors.”

    Church to mosque

    The church was converted into Kariye Mosque half a century after the 1453 conquest of Constantinople by the Ottoman Turks.

    It became the Kariye Museum after World War II, when Turkey sought to create a more secular republic from the ashes of the Ottoman Empire.

    Erdogan in 2020 ordered the building to be reconverted into a Muslim place of worship.

    His order came followed a similarly controversial ruling on the UNESCO-protected Hagia Sophia cathedral in Istanbul.

    At the time of the Kariye Mosque’s reopening on May 6, Greece’s foreign affairs ministry called the move a “provocation”.

    Erdogan said Monday he attached “great importance” to “protecting any monument that constitutes an item of UNESCO cultural heritage and to making it accessible for the benefit of our nation and all humanity.”

    The changes were seen as part of Erdogan’s efforts to galvanise his more conservative and nationalist supporters. Erdogan’s ruling AKP party has Islamist roots.

    Trade target

    Despite the disagreement, the two leaders said they were working to normalise relations after decades of tension.

    Erdogan called it an “extremely productive, honest and constructive meeting”.

    “We think that strengthening the spirit of cooperation between Turkey and Greece will be beneficial for both countries and for the region,” Erdogan said.

    He said the two sides had agreed to raise their bilateral trade from $6 billion to $10 billion.

    “We have shown that, besides existing disagreements, we can turn over a new leaf,” Mitsotakis said.

    “We wish to intensify our bilateral contact. We continue on a positive path.”

    The two countries signed a cooperation agreement on disaster and emergency management, following a devastating earthquake in Turkey in February and forest fires in Greece last year.

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    House Oversight Committee Moving to Hold Garland in Contempt

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    The House Oversight Committee announced Monday it will move forward with contempt of Congress charges against Attorney General Merrick Garland over his refusal to comply with a subpoena for audio recordings of President Biden’s interview with former Special Counsel Robert Hur.

    Hur investigated the 81-year-old president’s handling of classified documents, and released transcripts of the pair’s interaction revealed the president confused key dates during the sitdowns.

    The Republican-controlled panel will hold a hearing May 16 in which members can debate and consider adding amendments to the contempt resolution before recommending the measure to the full House of Representatives for a vote.

    “The House Oversight and Judiciary Committees issued lawful subpoenas to Attorney General Garland for the audio recordings of President Biden’s interview with Special Counsel Hur, yet he continues to defy our subpoenas,” House Oversight Committee Chairman James Comer (R-Ky.) said in a statement.

    A subpoena was issued against Garland on Feb. 27 for transcripts, notes, video, and audio files related to Hur’s probe.

    The Justice Department has provided Congress with a transcript of Hur’s Oct. 8 and Oct. 9 interviews with Biden, which showed the president forgetting such things as the year his son Beau died of brain cancer and the year Donald Trump was elected president.

    The attorney general has refused to provide lawmakers with audio tapes of the lengthy interviews, with the DOJ fearing that they will be used to score political points.

    “These audio recordings are important to our investigation of President Biden’s willful retention of classified documents and his fitness to be President of the United States,” Comer said. “There must be consequences for refusing to comply with lawful congressional subpoenas and we will move to hold Attorney General Garland in contempt of Congress.”

    Hur, a former Trump-appointed US attorney for the District of Maryland, submitted his findings about Biden’s handling of classified information in early February.

    His 388-page bombshell report noted there was evidence that the commander in chief “willfully retained and disclosed classified materials,” but his team concluded there wasn’t enough to prove it “beyond a reasonable doubt.”

    Hur also expressed concern that a jury would perceive the oldest president in US history as a “sympathetic, well-meaning, elderly man with a poor memory.”

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    Biden Blasted After Withholding Key Intel from Israel to Keep Forces Out of Rafah

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    The Biden administration is under fire after reportedly withholding intelligence on the locations of senior Hamas officials to pressure Israel into giving up its planned invasion of Rafah.

    Biden officials have reportedly offered to supply Israel with intelligence on top Hamas officials in exchange for assurances that the Israeli military will not conduct a full-scale invasion of Rafah, which Israeli officials have repeatedly promised to do in order to take out the remaining battalions of Hamas left in the Gaza Strip, according to The Washington Post.

    Critics blasted the proposal, accusing President Joe Biden of withholding information that could finish the Israel-Hamas war faster, as well as potentially lead to the rescue of hostages still held by Hamas.

    “Is there anything more cynical than this? More repulsive? The administration says it has intel on the wherabouts [sic] of the Hamas terror masters but will only share if Israel agrees not to eradicate Hamas. This is an ally? This is a friend?” said Caroline Glick, the senior contributing editor at the Jewish News Syndicate.

    Ilan Berman, a senior vice president at the American Foreign Policy Council, posted: “Am I reading this right?!?! Has the U.S. had info on the locations of Hamas leaders (and presumably the hostages) that it’s kept from Israel up until now?? Methinks the White House has a bit of explaining to do.”

    HotAir managing editor Ed Morrissey said: “Biden, US intel have intel on locations of hostages, Hamas leaders but haven’t shared it with Israel. That’s not how the WaPo spins it, but that’s exactly what this means.”

    The report comes after President Joe Biden said last week that the U.S. would freeze offensive military aid to Israel if the Israeli military invades Rafah.

    “I made it clear that if they go into Rafah – they haven’t gone in Rafah yet – if they go into Rafah, I’m not supplying the weapons that have been used historically to deal with Rafah, to deal with the cities – that deal with that problem,” Biden said.

    Israeli Prime Minister Benjamin Netanyahu, a member of the war cabinet that is currently in charge of the Israeli government, responded to Biden’s threat in a video statement

    “If Israel needs to stand alone, it will stand alone,” Netanyahu said.

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    Joe Biden’s Daughter Ashley Confirms Stolen Diary Is Real

    Citizen Frank

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    Snopes has reversed their previous “fact-check” which claimed that a diary purported to have been written by the president’s daughter Ashley Biden was a unproven to be authentic, indicating it was a fake. In a letter provided by Ashley Biden to a court during sentencing of those convicted for having stolen the diary, Biden herself confirmed the diary’s authenticity.

    The diary, which resulted in scrutiny of President Joe Biden over a quote in the book that alleged he had taken “inappropriate” showers with his daughter, was found to have been stolen by two individuals and sold to Project Veritas, an investigative journalism outlet which declined to publish its contents.

    The letter confirming veracity was written by the young Biden to Judge Laura Taylor Swain during the sentencing hearing for Aimee Harris, who was convicted in the diary theft and distribution. The fact-check organization Snopes, which previously cast doubts on the diary’s authenticity, stated the diary is authentic following that letter.

    The letter from Ashley Biden stated, “I am deeply saddened that I even have to write this letter because my personal private journal was stolen and sold for profit.”

    Adding to her words, she also stated that the diary will be used to “peddle grotesque lies by distorting my stream-of-consciousness thoughts.”

    “Was I molested?” She had written in the diary. She also stated that she had been hyper-sexualized” as a child and had taken “probably not appropriate” showers with her father, Joe Biden.

    The letter from the president’s daughter also stated, “After being the victim of a crime in my early twenties, I developed PTSD. The journal that was stolen was part of my efforts to heal. I am a private citizen, targeted only because my father happened to be running to be President. In other words, the extensive work I have done to move past my trauma was undone by Ms. Harris’s actions. The defendant’s actions have created a constant environment of anxiety, fear, and intimidation in which my innermost thoughts are constantly distorted and manipulated.”

    Harris had said that the diary was left behind in a room that Ashley Biden was no longer staying in, where Harris had found herself and Biden’s possessions. This was also what Harris had told Project Veritas.

    After allegedly stealing the diary, Harris and her accomplice in the act, Robert Kurlander, sold the diary to Project Veritas, headed by James O’Keefe at the time.

    When the diary was then seized by law enforcement, O’Keefe made a statement about those that sold it to the organization.

    “We had never met or heard of the tipsters. The tipsters indicated the diary had been abandoned in a room in which Ms. Biden stayed at the time, and in which the tipsters stayed in temporarily, after Miss Biden departed the room,” O’Keefe said. “The tipsters indicated that the diary included explosive allegations against then candidate Joe Biden.”

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    Rumble Sues Google

    Citizen Frank

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    Rumble, the publicly-traded YouTube alternative that’s favored by conservatives, has filed a lawsuit against Google and its parent Alphabet

    The lawsuit argues that Google owes Rumble upwards of $1 billion in damages for lost ad revenue as a client, and for illegally leveraging its dominance in ad technology to hamper Rumble’s ability to compete as an ad tech competitor.

    This is the second lawsuit filed by the video company against Google. Rumble first sued Google in 2021 for illegally favoring YouTube videos in Google search results and within its Android mobile operating system.

    That lawsuit is currently in discovery, after a judge decided against Google in its motion to dismiss the case.

    The new lawsuit was filed in the Northern District of California — the same jurisdiction in which Rumble’s first lawsuit was filed.

    The complaint alleges that Rumble would have received billions in ad if not for Google’s anticompetitive conduct in the ad marketplace. (Rumble was a publishing client of Google’s until it built its own ad tech stack in 2022.)

    “Google exploits significant conflicts of interest that stem from its multiple roles in this electronically traded marketplace,” the complaint reads.

    “As a result, it is able to pocket a supra-competitive portion of every advertising dollar that passes through the Ad Tech markets it controls, ad-revenue that rightly should have passed through to publishers like Rumble and its content creators.”

    The lawsuit also alleges that Google abuses its monopoly in ad tech to illegally disadvantage Rumble as an ad tech competitor.

    “Google unlawfully forecloses competition in the market for publisher ad servers in the market for ad buying tools for small advertisers, and in the separate markets for ad exchanges and ad networks,” the complaint reads.

    “Google excludes competition by engaging in conduct unlawful under settled antitrust precedent, including through unlawful tying arrangements, a pattern and practice of exclusionary conduct targeting actual and potential rivals, and even a market allocation and price fixing agreement with Facebook, at one time its largest potential competitive threat in the publisher ad server and ad network markets.”

    Rumble’s ad marketplace revenues are still small, but the company sees its ad tech and cloud product offerings as a growing part of its business.

    Rumble’s full-year revenue for 2023 was $81 million. The vast majority of that revenue came from Rumble selling ads against the user-generated content on its platform.

    Rumble’s new lawsuit is the latest litigation waged against Google for ad tech dominance.

    The Justice Department and several U.S. states sued Google last year for illegally abusing its dominance in digital advertising and violating the Sherman Antitrust Act.

    The EU fined Google $1.7 billion for illegally stifling online ad competition in 2019.

    Dozens of other publishers in the U.S. and globally have also sued Google for the same reason.

    Rumble feels uniquely positioned to take the lead in its legal battles with Google because it believes it’s been harmed by Google’s monopoly abuse both as a customer of its ad tech solutions and as a competitor.

    However, the firm — which is headquartered in Canada but trades publicly in the U.S. — has not been called to testify against Google in the U.S. government’s current lawsuit against the tech giant.

    The trial for Rumble’s search ad lawsuit is scheduled for next April in Oakland, California.

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    Psaki Literally Rewrites History with Biden Watch Controversy; Gets Caught

    Citizen Frank

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    Former White House Press Secretary Jen Psaki circled back when caught falsely claiming in a new book that President Joe Biden never checked his watch during a ceremony for soldiers killed during the 2021 U.S. withdrawal from Afghanistan.

    Axios reported Psaki, now a host on MSNBC, wrote in “Say More” that “the president looked at his watch only after the ceremony had ended. Moments later, he and the First Lady headed toward their car.”

    She also claimed that Biden’s critics engaged in “misinformation” and used the image of Biden checking his watch to make “him appear insensitive, concerned only about how much time had passed.”

    Psaki denied that Biden checked his watch despite photo evidence, media fact-checks, and statements made by Gold Star parents of a U.S. service member killed in the Kabul airport attack who were in attendance during the ceremony at Dover Air Force Base.

    “I watched you disrespect us all 5 different times by checking your watch!!! What the f*** was so important that you had to keep looking at your watch????” said a Facebook post from Shana Chappell, mother of Marine Lance Cpl. Kareem Nikoui.

    Mark Schmitz, father of Marine Lance Cpl. Jared Schmitz, testified to Congress that “while I stood there on the tarmac watching you check your watch over and over again, all I wanted to do was shout out, ‘It’s two f***ing thirty, a**hole.’”

    Psaki’s book also misattributed sentences taken from USA Today to The Washington Post to point out that Biden looked at his watch after the ceremony — even though the article said elsewhere that Biden checked his watch during the ceremony, too.

    Axios received a statement from Psaki after its report was published, saying that the “detail in a few lines of the book about the exact number of times he looked at his watch will be removed in future reprints and the ebook.”

    Psaki insisted her story was “really about the importance of delivering feedback even when it is difficult told through my own experience of telling President Biden that his own story of loss was not well received by the families who were grieving their sons and daughters.”

    The book mishap drew blowback on social media.

    “Jen Psaki lied in her book about an easily provable fact,” RealClearPolitics co-founder and president Tom Bevan said in a post to X.

    In another post to X, Rep. Mike Waltz (R-FL) said, “Calling Gold Star families liars — even when there’s photographic proof — is a pathetic partisan attempt to defend your boss and a bad look.”

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