Legal News for Weds 9/25 - Jones Infowars Auction, Judge Newman Capacity Report, Dentons' Lawsuit Over Hack, FTX Ellison Sentenced and NYC Data Law Ruling

The document on permanent display in the Rotunda is the enrolled original Joint Resolution passed by Congress on September 25, 1789, proposing 12-not 10-amendments to the Constitution.

This Day in Legal History: Bill of Rights Sent to US States for Ratification

On September 25, 1789, the United States Congress sent twelve proposed constitutional amendments to the state legislatures for ratification. These amendments were designed to safeguard individual liberties and limit the power of the federal government, addressing concerns raised during the ratification of the Constitution. By 1791, ten of the amendments were ratified, becoming the Bill of Rights. The Bill of Rights includes fundamental protections, such as freedom of speech, religion, and the press, the right to a fair trial, and protection against unreasonable searches and seizures.

Notably, two of the twelve proposed amendments were not immediately ratified. One related to Congressional representation and never received the necessary support from the states. The other, concerning Congressional pay, lay dormant for over two centuries before finally being ratified in 1992, becoming the 27th Amendment. This long-delayed ratification demonstrated the lasting nature of the constitutional amendment process. The Bill of Rights has since served as a cornerstone of American democracy, influencing both U.S. law and constitutional frameworks worldwide.

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A Houston bankruptcy court has approved the sale of assets from Alex Jones’ Infowars media platform, marking a significant step in liquidating Jones’ estate. U.S. Bankruptcy Judge Christopher M. Lopez authorized Chapter 7 trustee Christopher R. Murray to employ a sales broker and begin auctioning the assets of Free Speech Systems LLC, Infowars' parent company. 

This liquidation aims to help Jones pay $1.5 billion in defamation judgments from lawsuits related to his false claims about the 2012 Sandy Hook shooting. The auction will primarily focus on Infowars’ intellectual property, including domain names, trademarks, and social media accounts, with bidding set to end on Nov. 8 and an auction on Nov. 13. Murray may later include Jones’ personal intellectual property in the sale. The bankruptcy court previously converted Jones' personal Chapter 11 case into a Chapter 7 liquidation, enabling the victims' families to pursue their claims. Disputes remain over how funds from the sale will be distributed to creditors.

Alex Jones’ Infowars IP Heads to Auction After Judge Approval

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A new medical report by neurosurgeon Aaron Filler has concluded that 97-year-old Federal Circuit Judge Pauline Newman is "fully capable" of performing her judicial duties. Released by Newman’s lawyers, the report follows her suspension by the court’s Judicial Council after she refused a neurological exam with an independent doctor. 

Filler, a physician and attorney, used advanced brain scans and cited objective data to support his findings, dismissing concerns over subjective interpretation. Filler also compared Newman’s current verbal and analytical abilities with his prior interactions with her during legal cases in 2019 and 2022. This report counters previous exams that raised questions about the independence of Newman's physicians, as her colleagues suggested potential conflicts of interest. Newman’s legal team has consistently defended her health and capacity, and this latest report is a key piece in their efforts to overturn her suspension. The Judicial Committee has not yet commented on the new findings.

Judge Newman Fully Capable to Serve, New Physician Report Says

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A lawsuit filed in the U.S. District Court for the Central District of California claims that law firm Dentons assisted vape distributor Next Level Holdings in sabotaging vape manufacturer Avid Holdings. The complaint alleges that Dentons, through its offices in Salt Lake City and Shanghai, helped orchestrate a scheme to take control of Avid's assets, cut out its founder, and drain its resources. As part of this plan, Avid claims that Dentons hacked into the laptop of its founder, citing Google Drive logs linking the firm's IP address to the breach. Next Level allegedly used the stolen information to mislead judges in prior legal disputes with Avid. Dentons has not yet commented on the lawsuit. Avid's attorney, Colin Hagan, declined to provide further remarks. The lawsuit follows Dentons’ recent severing of ties with its Chinese affiliate, Dacheng Law Offices.

Dentons Assisted Laptop Hack, Vape Manufacturer Lawsuit Claims

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Caroline Ellison, former CEO of Alameda Research and ex-girlfriend of Sam Bankman-Fried, was sentenced to two years in prison for her involvement in the $8 billion fraud linked to FTX's collapse. 

Despite her cooperation with prosecutors, U.S. District Judge Lewis Kaplan emphasized that remorse and cooperation shouldn't serve as a "get out of jail free card" in such a serious case. Ellison had pleaded guilty to seven counts of fraud and conspiracy, which could have carried a sentence of up to 110 years. Her testimony was pivotal in securing Bankman-Fried's conviction, as she revealed that he directed her to misappropriate customer funds. 

While the prosecution acknowledged her critical role in convicting Bankman-Fried, who is serving 25 years, the judge still deemed her "gravely culpable" in the fraud. Ellison expressed deep regret for her actions and will begin serving her sentence in November. Other FTX executives who cooperated, Nishad Singh and Gary Wang, are scheduled for sentencing later in 2024.

Bankman-Fried's ex-girlfriend Ellison gets two-year sentence over FTX fraud | Reuters

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A federal judge has ruled that a New York City law requiring food delivery companies to share customer data with restaurants is unconstitutional. U.S. District Judge Analisa Torres sided with DoorDash, Grubhub, and Uber Eats, determining that the law violated the First Amendment by improperly regulating commercial speech. 

The law, enacted in 2021 to support restaurants recovering from the pandemic, required delivery services to share customer names, addresses, emails, phone numbers, and order details with restaurants. The companies argued that this violated customer privacy and data security and hurt their business by allowing restaurants to use the data for marketing purposes. The judge found the city had less invasive ways to help restaurants, such as letting customers opt to share their data or offering incentives. While DoorDash welcomed the ruling, restaurant industry representatives criticized it, arguing it harms small businesses, and urged the city to appeal.

Judge declares NYC law on sharing food delivery customers' data unconstitutional | Reuters