Wisconsin
Jury finds man sane in sexual assault, killing of 20-month-old girl
MADISON, Wis. (AP) — A Wisconsin man convicted in the sexual assault and killing of a 20-month-old girl and abuse of the child’s mother was not insane at the time, a Dane County jury decided Tuesday.
Marshawn Giles, 25, was found guilty last week of 15 charges including first-degree intentional homicide. The jury returned this week to determine if Giles was not responsible for the crimes due to a mental disease or defect.
Authorities have said the toddler died in April 2022 in Madison from blunt force injuries to her head, leaving her with multiple skull fractures. An autopsy also noted blunt force injuries elsewhere that were consistent with sexual assault.
Giles now faces two life prison sentences after Circuit Judge Mario White formally entered convictions for the homicide and first-degree sexual assault of a child causing great bodily harm, two of the 15 charges the same jury convicted him of last week.
Arkansas
Elimination of ‘X’ for sex on driver’s licenses spurs lawsuit by ACLU
LITTLE ROCK, Ark. (AP) — Several transgender, intersex and nonbinary Arkansas residents sued the state of Arkansas on Tuesday over its decision to no longer allow “X” instead of male or female on state-issued driver’s licenses or identification cards.
The American Civil Liberties Union of Arkansas asked a Pulaski County judge to halt the state’s decision to reverse a practice that had been in place since 2010. The new emergency rule will also make it harder for a person to change their sex on the cards.
The state Department of Finance and Administration announced the change last month, and a legislative panel approved an emergency rule carrying it out. The lawsuit argues that the state did not follow the proper steps for implementing the rule, including a 30-day notice and public comment period.
“By forcing plaintiffs to adopt gender markers that do not cohere to their own identities, the rule imposes a dignitary harm — one they are forced to carry around with them and relive every time they use their identification,” the lawsuit reads. “The emergency rule causes plaintiffs to suffer the stress and anxiety inherent in being told by the state that a core element of their being is not worth recognizing.”
Attorney General Tim Griffin said his office was reviewing the lawsuit and looked forward to defending the DFA in court. Jim Hudson, the department’s secretary, said it planned to “vigorously” defend the rule in court.
“Our emergency rule was adopted by DFA and the General Assembly to ensure the safety of our citizens and the stakeholders who rely on the licenses and IDs we issue,” Hudson said in a statement. “DFA is implementing this policy in a manner that is respectful to all.”
The lawsuit also argues that the new rule for IDs and driver’s licenses will create inconsistencies with the plaintiffs’ other documents. One of the plaintiffs, who is nonbinary, will have a Colorado birth certificate with an “X” but will be listed as female on their Arkansas license.
At least 22 states and the District of Columbia allow “X” as an option on licenses and IDs. All previously issued Arkansas licenses and IDs with the designation will remain valid through their existing expiration dates, the Department of Finance and Administration said last month. Arkansas has more than 2.6 million active driver’s licenses, 342 of which list the person’s sex as “X.” The state has about 503,000 IDs, 174 of which have the designation.
The emergency rule will also make it more difficult for transgender people to change the sex listed on their licenses and IDs, which they had been able to do by submitting an amended birth certificate. The rule requires a court order to change the sex listed on a birth certificate.
The DFA has said the previous practice wasn’t supported by state law and hadn’t gone through the required public comment process and legislative review.
Delaware
Judge dismisses Meta shareholder lawsuit claiming that directors’ obligations extend beyond company
DOVER, Del. (AP) — A Delaware judge on Tuesday dismissed a shareholder lawsuit asserting novel claims about the roles of corporate leaders and arguing that the loyalties of Meta directors and company founder Mark Zuckerberg should not lie exclusively with the social media giant.
James McRitchie, who runs a website focused on corporate governance and shareholder activism, argued that Meta’s directors have breached their duties to the company by putting profits over broader societal and economic interests, including Meta shareholders’ diversified investments in other companies.
In a 101-page opinion citing court rulings dating back more than 200 years, decades of law review articles and legal treatises, and even a Sherlock Holmes short story, Vice Chancellor J. Travis Laster rejected McRitchie’s claims.
Laster noted that, under the “standard Delaware formulation” of corporate law, directors of a corporation owe duties to the stockholders as investors in that corporation.
“The plaintiff has not made a persuasive case for change,” Laster wrote. “At most, he has shown that some academics — primarily from the law and economics school — have assumed that a diversified-investor model is the norm. He has also shown that some investor advocacy organizations would prefer that model.”
While Delaware law requires corporate directors to act in the best interests of their stockholders, including maximizing the value of their shares, attorneys for McRitchie argued that Delaware courts should recognize a “portfolio theory” of corporate governance that takes into account external factors.
They argued, for example, that Meta, which owns Facebook, Instagram, Messenger and WhatsApp, has prioritized profits while downplaying the detrimental effects of its products on society and the global economy. That, in turn, they said, can negatively affect the investment portfolios of Meta shareholders who also have invested in other companies.
Among the “negative externalities” the lawsuit blamed on Meta’s social media platforms are mental health problems among young Instagram users, online human trafficking, “vaccine hesitancy,” incitements to violence, and “election misinformation.”
New York
Trial begins for financial exec in insider trading case tied to taking Trump media firm public
NEW YORK (AP) — An insider trading trial began Tuesday for a financial executive charged with enabling his boss and others to make millions of dollars illegally on news that an acquisition firm would be taking former President Donald Trump’s media company public.
In an opening statement, Assistant U.S. Attorney Elizabeth Hanft accused Bruce Garelick of tipping off his boss and friends to news in 2021 that the special purpose acquisition company, Digital World Acquisition Corp., was merging with Trump Media & Technology Group.
Defense attorney Jonathan Bach insisted in his opening that Garelick was innocent and did not tip off anyone.
Several weeks ago, Garelick’s co-defendants — Michael Shvartsman of Sunny Isles Beach, Florida, and his brother, Gerald Shvartsman of Aventura, Florida — pleaded guilty to insider trading charges, admitting that they made over $22 million illegally. They are scheduled to be sentenced on July 17.
Michael Shvartsman owned Rocket One Capital LLC, a venture capital firm, and Garelick, of Providence, Rhode Island, was the company’s chief investment officer, though he has primarily worked in the Boston area throughout his career.
The indictment against the men did not implicate Trump, who is seeking the presidency again this year as a Republican, or Trump Media & Technology Group, which owns his Truth Social platform and began trading on the NASDAQ stock market on March 26.
Hanft told the jury Tuesday that Garelick and those he tipped off invested millions of dollars in the securities of the Digital World after they were tipped off that a potential target of DWAC was Trump Media.
When the deal was announced, the defendants sold their securities for $22 million in profits, though Bach noted that his client was only accused of making $49,000 from trades. He asked the jury if it made sense that Garelick would risk a reputation built over decades in the securities business for that amount of money.
“He followed the rules,” Bach said. “Bruce was not part of the same social circles as everybody else who was part of this case. ... He was nobody’s close friend or buddy.”
Hanft, though, said that Garelick took information he learned as a member of DWAC’s board of directors and spread the secrets to others. She said prosecutors will use witnesses, trading and phone records, along with emails and text messages to prove their case.
Delaware
Judge refuses to fast-track claims in post-merger lawsuit against Trump Media
DOVER, Del. (AP) — A Delaware judge on Tuesday granted a request by attorneys for Donald Trump and Trump Media & Technology Group, parent company of his Truth Social platform, to slow down a lawsuit filed by two cofounders of the company.
Vice Chancellor Morgan Zurn said Andrew Litinsky and Wesley Moss, former contestants on Trump’s TV show, “The Apprentice,” failed to justify putting certain claims in their lawsuit on a fast track for court rulings.
Litinsky and Moss filed a lawsuit in February claiming that Trump Media planned to dilute their stake in the company as part of a merger that took it public in late March. A different judge agreed to fast-track that lawsuit given the impending merger date. However, the plaintiffs’ concerns about their limited liability company’s 8.6% stake in Trump Media being diluted were mooted when defense attorneys assured the judge that the LLC, United Atlantic Ventures, would suffer no merger-related dilution.
Following the merger, UAV filed a second amended complaint claiming that Trump and other defendants improperly imposed a “lock up” provision preventing UAV from selling its shares in the public company for six months. They simultaneously argued that the case should remain on the fast track because they would be harmed if they have to wait six months to sell their shares.
Zurn noted that UAV was on notice about the lockup provision on Feb. 12 as the result of a filing that day with the Securities and Exchange Commission. That was followed by two other SEC filings documenting the lockup provision.
UAV also wanted Zurn to fast-track arguments on its request for an “anti-suit injunction” prohibiting Trump Media from pursuing a Florida lawsuit against UAV. That lawsuit alleges that, because of pre-merger mismanagement by Moss and Litinsky, UAV has no right to own shares in the newly public Trump Media company. The Florida lawsuit also challenges UAV’s assertion that it has the right to appoint two directors to the Trump Media board.
Attorneys for Trump Media argue that the Florida lawsuit does not violate the Delaware court order because UAV in fact received its post-merger shares. They also say the venue provision does not apply to Trump Media and Technology Group.
Zurn said she was reluctant to expedite arguments on whether the Florida lawsuit complies with the venue provision, and whether its claims should be governed by Delaware law. She did say, however, that arguments on whether the filing of the Florida lawsuit violated the March 15 court order in Delaware “should be heard rapidly.”
Jury finds man sane in sexual assault, killing of 20-month-old girl
MADISON, Wis. (AP) — A Wisconsin man convicted in the sexual assault and killing of a 20-month-old girl and abuse of the child’s mother was not insane at the time, a Dane County jury decided Tuesday.
Marshawn Giles, 25, was found guilty last week of 15 charges including first-degree intentional homicide. The jury returned this week to determine if Giles was not responsible for the crimes due to a mental disease or defect.
Authorities have said the toddler died in April 2022 in Madison from blunt force injuries to her head, leaving her with multiple skull fractures. An autopsy also noted blunt force injuries elsewhere that were consistent with sexual assault.
Giles now faces two life prison sentences after Circuit Judge Mario White formally entered convictions for the homicide and first-degree sexual assault of a child causing great bodily harm, two of the 15 charges the same jury convicted him of last week.
Arkansas
Elimination of ‘X’ for sex on driver’s licenses spurs lawsuit by ACLU
LITTLE ROCK, Ark. (AP) — Several transgender, intersex and nonbinary Arkansas residents sued the state of Arkansas on Tuesday over its decision to no longer allow “X” instead of male or female on state-issued driver’s licenses or identification cards.
The American Civil Liberties Union of Arkansas asked a Pulaski County judge to halt the state’s decision to reverse a practice that had been in place since 2010. The new emergency rule will also make it harder for a person to change their sex on the cards.
The state Department of Finance and Administration announced the change last month, and a legislative panel approved an emergency rule carrying it out. The lawsuit argues that the state did not follow the proper steps for implementing the rule, including a 30-day notice and public comment period.
“By forcing plaintiffs to adopt gender markers that do not cohere to their own identities, the rule imposes a dignitary harm — one they are forced to carry around with them and relive every time they use their identification,” the lawsuit reads. “The emergency rule causes plaintiffs to suffer the stress and anxiety inherent in being told by the state that a core element of their being is not worth recognizing.”
Attorney General Tim Griffin said his office was reviewing the lawsuit and looked forward to defending the DFA in court. Jim Hudson, the department’s secretary, said it planned to “vigorously” defend the rule in court.
“Our emergency rule was adopted by DFA and the General Assembly to ensure the safety of our citizens and the stakeholders who rely on the licenses and IDs we issue,” Hudson said in a statement. “DFA is implementing this policy in a manner that is respectful to all.”
The lawsuit also argues that the new rule for IDs and driver’s licenses will create inconsistencies with the plaintiffs’ other documents. One of the plaintiffs, who is nonbinary, will have a Colorado birth certificate with an “X” but will be listed as female on their Arkansas license.
At least 22 states and the District of Columbia allow “X” as an option on licenses and IDs. All previously issued Arkansas licenses and IDs with the designation will remain valid through their existing expiration dates, the Department of Finance and Administration said last month. Arkansas has more than 2.6 million active driver’s licenses, 342 of which list the person’s sex as “X.” The state has about 503,000 IDs, 174 of which have the designation.
The emergency rule will also make it more difficult for transgender people to change the sex listed on their licenses and IDs, which they had been able to do by submitting an amended birth certificate. The rule requires a court order to change the sex listed on a birth certificate.
The DFA has said the previous practice wasn’t supported by state law and hadn’t gone through the required public comment process and legislative review.
Delaware
Judge dismisses Meta shareholder lawsuit claiming that directors’ obligations extend beyond company
DOVER, Del. (AP) — A Delaware judge on Tuesday dismissed a shareholder lawsuit asserting novel claims about the roles of corporate leaders and arguing that the loyalties of Meta directors and company founder Mark Zuckerberg should not lie exclusively with the social media giant.
James McRitchie, who runs a website focused on corporate governance and shareholder activism, argued that Meta’s directors have breached their duties to the company by putting profits over broader societal and economic interests, including Meta shareholders’ diversified investments in other companies.
In a 101-page opinion citing court rulings dating back more than 200 years, decades of law review articles and legal treatises, and even a Sherlock Holmes short story, Vice Chancellor J. Travis Laster rejected McRitchie’s claims.
Laster noted that, under the “standard Delaware formulation” of corporate law, directors of a corporation owe duties to the stockholders as investors in that corporation.
“The plaintiff has not made a persuasive case for change,” Laster wrote. “At most, he has shown that some academics — primarily from the law and economics school — have assumed that a diversified-investor model is the norm. He has also shown that some investor advocacy organizations would prefer that model.”
While Delaware law requires corporate directors to act in the best interests of their stockholders, including maximizing the value of their shares, attorneys for McRitchie argued that Delaware courts should recognize a “portfolio theory” of corporate governance that takes into account external factors.
They argued, for example, that Meta, which owns Facebook, Instagram, Messenger and WhatsApp, has prioritized profits while downplaying the detrimental effects of its products on society and the global economy. That, in turn, they said, can negatively affect the investment portfolios of Meta shareholders who also have invested in other companies.
Among the “negative externalities” the lawsuit blamed on Meta’s social media platforms are mental health problems among young Instagram users, online human trafficking, “vaccine hesitancy,” incitements to violence, and “election misinformation.”
New York
Trial begins for financial exec in insider trading case tied to taking Trump media firm public
NEW YORK (AP) — An insider trading trial began Tuesday for a financial executive charged with enabling his boss and others to make millions of dollars illegally on news that an acquisition firm would be taking former President Donald Trump’s media company public.
In an opening statement, Assistant U.S. Attorney Elizabeth Hanft accused Bruce Garelick of tipping off his boss and friends to news in 2021 that the special purpose acquisition company, Digital World Acquisition Corp., was merging with Trump Media & Technology Group.
Defense attorney Jonathan Bach insisted in his opening that Garelick was innocent and did not tip off anyone.
Several weeks ago, Garelick’s co-defendants — Michael Shvartsman of Sunny Isles Beach, Florida, and his brother, Gerald Shvartsman of Aventura, Florida — pleaded guilty to insider trading charges, admitting that they made over $22 million illegally. They are scheduled to be sentenced on July 17.
Michael Shvartsman owned Rocket One Capital LLC, a venture capital firm, and Garelick, of Providence, Rhode Island, was the company’s chief investment officer, though he has primarily worked in the Boston area throughout his career.
The indictment against the men did not implicate Trump, who is seeking the presidency again this year as a Republican, or Trump Media & Technology Group, which owns his Truth Social platform and began trading on the NASDAQ stock market on March 26.
Hanft told the jury Tuesday that Garelick and those he tipped off invested millions of dollars in the securities of the Digital World after they were tipped off that a potential target of DWAC was Trump Media.
When the deal was announced, the defendants sold their securities for $22 million in profits, though Bach noted that his client was only accused of making $49,000 from trades. He asked the jury if it made sense that Garelick would risk a reputation built over decades in the securities business for that amount of money.
“He followed the rules,” Bach said. “Bruce was not part of the same social circles as everybody else who was part of this case. ... He was nobody’s close friend or buddy.”
Hanft, though, said that Garelick took information he learned as a member of DWAC’s board of directors and spread the secrets to others. She said prosecutors will use witnesses, trading and phone records, along with emails and text messages to prove their case.
Delaware
Judge refuses to fast-track claims in post-merger lawsuit against Trump Media
DOVER, Del. (AP) — A Delaware judge on Tuesday granted a request by attorneys for Donald Trump and Trump Media & Technology Group, parent company of his Truth Social platform, to slow down a lawsuit filed by two cofounders of the company.
Vice Chancellor Morgan Zurn said Andrew Litinsky and Wesley Moss, former contestants on Trump’s TV show, “The Apprentice,” failed to justify putting certain claims in their lawsuit on a fast track for court rulings.
Litinsky and Moss filed a lawsuit in February claiming that Trump Media planned to dilute their stake in the company as part of a merger that took it public in late March. A different judge agreed to fast-track that lawsuit given the impending merger date. However, the plaintiffs’ concerns about their limited liability company’s 8.6% stake in Trump Media being diluted were mooted when defense attorneys assured the judge that the LLC, United Atlantic Ventures, would suffer no merger-related dilution.
Following the merger, UAV filed a second amended complaint claiming that Trump and other defendants improperly imposed a “lock up” provision preventing UAV from selling its shares in the public company for six months. They simultaneously argued that the case should remain on the fast track because they would be harmed if they have to wait six months to sell their shares.
Zurn noted that UAV was on notice about the lockup provision on Feb. 12 as the result of a filing that day with the Securities and Exchange Commission. That was followed by two other SEC filings documenting the lockup provision.
UAV also wanted Zurn to fast-track arguments on its request for an “anti-suit injunction” prohibiting Trump Media from pursuing a Florida lawsuit against UAV. That lawsuit alleges that, because of pre-merger mismanagement by Moss and Litinsky, UAV has no right to own shares in the newly public Trump Media company. The Florida lawsuit also challenges UAV’s assertion that it has the right to appoint two directors to the Trump Media board.
Attorneys for Trump Media argue that the Florida lawsuit does not violate the Delaware court order because UAV in fact received its post-merger shares. They also say the venue provision does not apply to Trump Media and Technology Group.
Zurn said she was reluctant to expedite arguments on whether the Florida lawsuit complies with the venue provision, and whether its claims should be governed by Delaware law. She did say, however, that arguments on whether the filing of the Florida lawsuit violated the March 15 court order in Delaware “should be heard rapidly.”
