1 00:00:03,200 --> 00:00:07,960 Speaker 1: This is Bloomberg Law with June Brusso from Bloomberg Radio. 2 00:00:09,160 --> 00:00:13,800 Speaker 2: This bill mandates the display of the Ten Commandments in 3 00:00:13,880 --> 00:00:18,560 Speaker 2: every classroom in public, elementary, secondary, in post education schools 4 00:00:18,880 --> 00:00:20,119 Speaker 2: in a state Louisiana. 5 00:00:21,480 --> 00:00:24,759 Speaker 3: Louisiana is the first state to require that the Ten 6 00:00:24,880 --> 00:00:29,800 Speaker 3: Commandments be displayed in public school classrooms since nineteen eighty, 7 00:00:30,080 --> 00:00:33,720 Speaker 3: when the Supreme Court struck down a similar Kentucky law 8 00:00:33,840 --> 00:00:38,040 Speaker 3: on First Amendment grounds. Governor Jeff Landry signed the bill, 9 00:00:38,120 --> 00:00:42,000 Speaker 3: which requires a poster sized, state approved version of the 10 00:00:42,040 --> 00:00:46,400 Speaker 3: Ten Commandments to be posted in public classrooms from kindergartens 11 00:00:46,520 --> 00:00:49,400 Speaker 3: up to universities by January first. 12 00:00:49,640 --> 00:00:51,520 Speaker 2: Because if you want to respect the rule of law, 13 00:00:51,520 --> 00:00:55,360 Speaker 2: you got to start from the original law giver, which 14 00:00:55,440 --> 00:00:56,000 Speaker 2: was Moses. 15 00:00:57,120 --> 00:01:00,200 Speaker 3: But a federal judge has stepped in to stop that 16 00:01:00,280 --> 00:01:04,800 Speaker 3: from happening, finding that the law is unconstitutional on its face. 17 00:01:05,080 --> 00:01:08,360 Speaker 3: With state officials vowing to appeal the ruling, the legal 18 00:01:08,440 --> 00:01:11,640 Speaker 3: showdown won't end tier and may even end up at 19 00:01:11,640 --> 00:01:14,080 Speaker 3: the Supreme Court. Joining me is an expert in the 20 00:01:14,080 --> 00:01:18,080 Speaker 3: First Amendment. Caroline mal KORbin, a professor at the University 21 00:01:18,080 --> 00:01:21,679 Speaker 3: of Miami Law School, tell us about the judges ruling 22 00:01:21,800 --> 00:01:23,039 Speaker 3: almost two hundred pages. 23 00:01:23,440 --> 00:01:26,280 Speaker 4: It was indeed very long. It was one hundred and 24 00:01:26,360 --> 00:01:33,319 Speaker 4: seventy seven pages. So Louisiana had passed a law mandating 25 00:01:33,880 --> 00:01:39,039 Speaker 4: the posting of a particular version of the Ten Commandments 26 00:01:39,080 --> 00:01:44,160 Speaker 4: in every single classroom in the public schools of Louisiana, 27 00:01:44,200 --> 00:01:47,800 Speaker 4: both case through twelve and the university level. And this 28 00:01:48,000 --> 00:01:52,080 Speaker 4: was challenged, not surprisingly on Establishment laws ground, and the 29 00:01:52,160 --> 00:01:57,520 Speaker 4: District Court gave sort of two paths of why this 30 00:01:57,960 --> 00:02:01,840 Speaker 4: was in fact in violation the establishment clause, and his 31 00:02:02,360 --> 00:02:07,480 Speaker 4: first line of discussion was that there is very clear 32 00:02:07,560 --> 00:02:11,000 Speaker 4: precedent on this matter. Kentucky had tried the same thing 33 00:02:11,360 --> 00:02:14,520 Speaker 4: back in nineteen eighty. It too had passed the law 34 00:02:14,760 --> 00:02:18,760 Speaker 4: requiring the posting of the Ten Commandments in every single classroom, 35 00:02:18,960 --> 00:02:23,200 Speaker 4: and the court said, no, you can't do that. There 36 00:02:23,280 --> 00:02:27,760 Speaker 4: is no real secular reason for this. You can't impose 37 00:02:28,160 --> 00:02:32,600 Speaker 4: a religion on the walls like that. It is unconstitutional. 38 00:02:32,800 --> 00:02:39,120 Speaker 4: And so there is Supreme Court precedent directly on point. 39 00:02:39,160 --> 00:02:43,840 Speaker 4: And so the District Court said, under this decision, which 40 00:02:43,919 --> 00:02:46,960 Speaker 4: is still good law because the Supreme Court has not 41 00:02:47,080 --> 00:02:51,640 Speaker 4: yet explicitly overruled it, this law cannot survive. And so 42 00:02:51,720 --> 00:02:55,560 Speaker 4: that was one approach, which is very straightforward. And then 43 00:02:55,600 --> 00:03:00,400 Speaker 4: it had another line of argument because there is concerned 44 00:03:00,600 --> 00:03:03,600 Speaker 4: that the Supreme Court is going to overrule that decision, 45 00:03:03,960 --> 00:03:08,160 Speaker 4: and in fact, that's partly what Louisiana is hoping. And 46 00:03:08,280 --> 00:03:14,600 Speaker 4: so given this new Christian friendly Supreme Court, it may 47 00:03:14,840 --> 00:03:19,360 Speaker 4: well decide that that precedent is no longer good, in 48 00:03:19,440 --> 00:03:22,760 Speaker 4: part because it relied on some doctrine that the Supreme 49 00:03:22,800 --> 00:03:27,320 Speaker 4: Court had rejected, so anticipating that that argument, which should 50 00:03:27,320 --> 00:03:31,200 Speaker 4: be enough, might not be enough, it also analyzed the 51 00:03:31,280 --> 00:03:35,000 Speaker 4: case under the Supreme court more recent rulings and the 52 00:03:35,040 --> 00:03:39,520 Speaker 4: Supreme Court's more recent rulings have said, when you're trying 53 00:03:39,520 --> 00:03:43,360 Speaker 4: to decide whether something violates the establishment clause or not, 54 00:03:43,720 --> 00:03:47,520 Speaker 4: you must refer to the history and tradition of the 55 00:03:47,600 --> 00:03:50,320 Speaker 4: practice in question. And so that's what the distcurt did, 56 00:03:50,520 --> 00:03:53,240 Speaker 4: and in fact, there was even an expert who testified. 57 00:03:53,640 --> 00:03:56,840 Speaker 4: And then the question was is there a history and 58 00:03:56,880 --> 00:04:01,000 Speaker 4: tradition of posting the Ten Commandments on the walls of 59 00:04:01,080 --> 00:04:04,120 Speaker 4: public schools? And the answer was no, there's no. 60 00:04:04,680 --> 00:04:08,960 Speaker 3: Will you describe the current test the Supreme Court uses 61 00:04:09,080 --> 00:04:11,560 Speaker 3: in establishment clause cases. 62 00:04:11,840 --> 00:04:15,480 Speaker 4: Yeah, There used to be several different tests the court 63 00:04:15,600 --> 00:04:20,200 Speaker 4: might rely on in evaluating establishment clause challenges, and they 64 00:04:20,240 --> 00:04:23,640 Speaker 4: have different names. There was the Lemon tests, the endorsement test, 65 00:04:24,000 --> 00:04:28,280 Speaker 4: the history and tradition test, the coercion test. In that decision, 66 00:04:28,640 --> 00:04:32,840 Speaker 4: the Supreme Court essentially killed off two of them, and 67 00:04:32,880 --> 00:04:35,000 Speaker 4: it said, we are no longer going to rely on 68 00:04:35,040 --> 00:04:37,640 Speaker 4: the Lemon tests, We're no longer going to rely on 69 00:04:37,839 --> 00:04:41,760 Speaker 4: the endorsement test. So what the court is going to 70 00:04:41,880 --> 00:04:46,760 Speaker 4: consider going forward when faced with an establishment clause challenge 71 00:04:47,200 --> 00:04:51,680 Speaker 4: is a history and tradition analysis, and also it will 72 00:04:51,720 --> 00:04:57,520 Speaker 4: consider whether anyone is being compelled into practicing religion against 73 00:04:57,560 --> 00:05:00,960 Speaker 4: their will. And so those the two frame work the 74 00:05:01,000 --> 00:05:04,520 Speaker 4: court will use going forward. And the District Court in 75 00:05:04,560 --> 00:05:09,560 Speaker 4: fact used them again in anticipation of its reliance on 76 00:05:09,680 --> 00:05:13,640 Speaker 4: precedent not being enough for the current court and conducted 77 00:05:13,640 --> 00:05:17,880 Speaker 4: a history and tradition analysis and also found them to 78 00:05:17,920 --> 00:05:19,440 Speaker 4: be rather coercive. 79 00:05:19,760 --> 00:05:22,960 Speaker 3: Louisiana is going to appeal, and they're in the Fifth Circuit, 80 00:05:23,360 --> 00:05:27,880 Speaker 3: which indeed the most conservative circuit in the country, has 81 00:05:28,279 --> 00:05:31,920 Speaker 3: handed down some novel rulings lately, some of them even 82 00:05:31,920 --> 00:05:34,240 Speaker 3: too much for the Supreme Court do you have any 83 00:05:34,320 --> 00:05:36,799 Speaker 3: confidence in how the Fifth Circuit will rule. 84 00:05:37,200 --> 00:05:40,560 Speaker 4: I do not have any confidence in how they were ruled. 85 00:05:40,600 --> 00:05:44,360 Speaker 4: But it would not surprise me if they pick up 86 00:05:44,440 --> 00:05:50,080 Speaker 4: the baton that the Louisiana Statute laid down and argue 87 00:05:50,560 --> 00:05:53,480 Speaker 4: that there is in fact a history and tradition of 88 00:05:53,520 --> 00:05:59,200 Speaker 4: the Ten Commandments in schools, and therefore there is nothing 89 00:05:59,279 --> 00:06:03,000 Speaker 4: wrong with having posters, and would not surprise me if 90 00:06:03,040 --> 00:06:05,279 Speaker 4: they said it was not at all coercive, because no 91 00:06:05,320 --> 00:06:10,400 Speaker 4: one's being forced to pray or do any particular religious exercise. 92 00:06:10,680 --> 00:06:15,240 Speaker 4: So I would not be surprised if again they constructed 93 00:06:15,360 --> 00:06:18,719 Speaker 4: a history in accurate history, by the way, because the 94 00:06:19,240 --> 00:06:22,320 Speaker 4: expert did quite a good job of dismantling some of 95 00:06:22,320 --> 00:06:25,760 Speaker 4: the claims that Louisiana made in its text, including a 96 00:06:25,839 --> 00:06:31,760 Speaker 4: completely fabricated quotation from James Madison. But nonetheless they will 97 00:06:32,040 --> 00:06:35,080 Speaker 4: claim that there is parenty of evidence of having the 98 00:06:35,120 --> 00:06:38,880 Speaker 4: Ten Commandments of schools, and even if there's no evidence 99 00:06:38,920 --> 00:06:42,680 Speaker 4: of Ten Commandment posters and schools, it doesn't matter. It's 100 00:06:42,800 --> 00:06:45,800 Speaker 4: enough that there were mention of the Ten Commandment or 101 00:06:45,839 --> 00:06:49,279 Speaker 4: reading of the Ten Commandment, and therefore there's no violation 102 00:06:49,360 --> 00:06:51,680 Speaker 4: of the Establishment Clause and they were a claimed that 103 00:06:51,800 --> 00:06:54,400 Speaker 4: simply looking at the Ten Commandments is not going to 104 00:06:54,440 --> 00:06:59,599 Speaker 4: force children into doing anything religious, and therefore there is 105 00:06:59,600 --> 00:07:01,160 Speaker 4: no stay aublishment clause violation. 106 00:07:01,680 --> 00:07:05,280 Speaker 3: The Supreme Court that ruled on the Kentucky case in 107 00:07:05,400 --> 00:07:09,720 Speaker 3: nineteen eighty was a very different court from the Roberts 108 00:07:09,760 --> 00:07:14,240 Speaker 3: Court of today, with its conservative super majority. I can't 109 00:07:14,280 --> 00:07:18,040 Speaker 3: remember the last time religion lost at this court. Do 110 00:07:18,120 --> 00:07:21,520 Speaker 3: you think that if this gets to the Supreme Court 111 00:07:21,560 --> 00:07:23,360 Speaker 3: that the Kentucky case will stand? 112 00:07:23,920 --> 00:07:28,960 Speaker 4: I don't know, because the Supreme Court has traditionally been 113 00:07:29,600 --> 00:07:34,600 Speaker 4: especially mindful of the establishment clause in the school context 114 00:07:34,720 --> 00:07:38,200 Speaker 4: for a couple of reasons. The first is that, you know, 115 00:07:38,240 --> 00:07:42,600 Speaker 4: the children in school are considered very young and very impressionable, 116 00:07:43,080 --> 00:07:47,680 Speaker 4: and therefore the government has heightened responsibilities towards them. And 117 00:07:48,000 --> 00:07:52,480 Speaker 4: second is that the students at school are a captive audience. 118 00:07:52,840 --> 00:07:55,320 Speaker 4: They have no choice but to be there. They're sort 119 00:07:55,320 --> 00:07:58,560 Speaker 4: of doubly captives. The government requires that they attend school 120 00:07:58,720 --> 00:08:02,320 Speaker 4: at an as school under the control of the school, 121 00:08:02,800 --> 00:08:08,760 Speaker 4: and therefore, again there are heightened responsibilities when you're dealing 122 00:08:08,800 --> 00:08:13,800 Speaker 4: with the young, impressional students who are also a captive audience. 123 00:08:14,120 --> 00:08:18,440 Speaker 4: Will the Supreme Court continue to honor these considerations. I 124 00:08:18,480 --> 00:08:21,400 Speaker 4: don't know, Possibly not, Caroline. 125 00:08:21,480 --> 00:08:26,080 Speaker 3: Other states have tried to pass laws similar to Louisiana's, 126 00:08:26,320 --> 00:08:30,640 Speaker 3: and in Oklahoma, the states Superintendent of Schools ordered that 127 00:08:30,760 --> 00:08:36,280 Speaker 3: the Bible be incorporated into lessons, while Florida recently approved 128 00:08:36,440 --> 00:08:42,040 Speaker 3: having volunteer religious chaplains serving as school counselors. Is a 129 00:08:42,080 --> 00:08:48,160 Speaker 3: conservative Christian movement trying to move the line and incorporate 130 00:08:48,679 --> 00:08:51,479 Speaker 3: religion into public school classrooms. 131 00:08:52,000 --> 00:08:55,360 Speaker 4: Oh, I don't think there's any questions. I think that 132 00:08:55,559 --> 00:08:59,480 Speaker 4: the Supreme Court has made it clear that it is 133 00:09:00,240 --> 00:09:06,960 Speaker 4: very sympathetic towards lanes of religious exercise. It has also 134 00:09:07,040 --> 00:09:10,800 Speaker 4: made it clear that it does not hold the establishment 135 00:09:10,840 --> 00:09:15,360 Speaker 4: clause in high esteem. And so I think this is 136 00:09:15,480 --> 00:09:19,280 Speaker 4: the vanguard of trying to get religion back into the schools, 137 00:09:19,640 --> 00:09:23,240 Speaker 4: and depending on the outcome of this case, we'll see 138 00:09:23,440 --> 00:09:25,640 Speaker 4: what happens in the rest of the country. 139 00:09:26,080 --> 00:09:29,720 Speaker 3: This brings up another question in these cases of trying 140 00:09:29,760 --> 00:09:36,360 Speaker 3: to incorporate religion into public schools, what religion is being incorporated. 141 00:09:36,800 --> 00:09:42,000 Speaker 4: One of the really interesting things about this challenge is 142 00:09:42,040 --> 00:09:47,320 Speaker 4: it not just the introduction of religion into school but 143 00:09:47,440 --> 00:09:52,520 Speaker 4: it's the introduction of only one faith tradition into the 144 00:09:52,559 --> 00:09:57,240 Speaker 4: school because the Ten Commandments on the wall are the 145 00:09:57,400 --> 00:10:02,720 Speaker 4: Protestant King Jin's version of the Ten Commandments. Different faith 146 00:10:02,800 --> 00:10:07,839 Speaker 4: traditions have different types of Ten Commandments. So, for example, 147 00:10:08,360 --> 00:10:13,160 Speaker 4: the Catholic version is different because this one says thou 148 00:10:13,240 --> 00:10:17,920 Speaker 4: shalt make to thyself no graven images, whereas that particular 149 00:10:18,000 --> 00:10:21,959 Speaker 4: prohibition is not in the Catholic version of the Ten Commandments, 150 00:10:22,160 --> 00:10:26,000 Speaker 4: whereas in the Jewish version of the Ten Commandments. The 151 00:10:26,040 --> 00:10:28,920 Speaker 4: first commandment here is I am the Lord thy God, 152 00:10:29,040 --> 00:10:32,400 Speaker 4: and the Jewish Ten Commandments it is I Am the 153 00:10:32,400 --> 00:10:35,560 Speaker 4: Lord thy God that brought you forth from Egypt. And 154 00:10:35,679 --> 00:10:40,480 Speaker 4: these are actually crucial theological differences. And I mention this 155 00:10:40,679 --> 00:10:46,400 Speaker 4: because under existing doctrine, as the district Court highlighted, the 156 00:10:46,440 --> 00:10:50,840 Speaker 4: court made it clear that the state cannot discriminate against 157 00:10:51,080 --> 00:10:55,360 Speaker 4: any other religion, it can't favor one religion over others, 158 00:10:55,440 --> 00:11:00,480 Speaker 4: it can't intentionally discriminate against other religions. And the choice 159 00:11:00,600 --> 00:11:05,520 Speaker 4: of this particular version seems to be doing exactly that. 160 00:11:06,000 --> 00:11:10,400 Speaker 4: And it's particularly problematic because if you look at our 161 00:11:10,640 --> 00:11:15,000 Speaker 4: history and tradition, at one point to the extent there 162 00:11:15,280 --> 00:11:19,680 Speaker 4: was any religion in the schools, it was Protestant religion, 163 00:11:20,360 --> 00:11:25,839 Speaker 4: and it was explicitly meant to exclude Catholics. And the 164 00:11:26,000 --> 00:11:32,040 Speaker 4: Court has long expressed concern about anti Catholic sentiments in 165 00:11:32,080 --> 00:11:36,400 Speaker 4: our country's history, and this could be seen as the 166 00:11:36,640 --> 00:11:42,040 Speaker 4: remnant of that historical hostility the Catholics that they so 167 00:11:42,440 --> 00:11:48,520 Speaker 4: often complain about and revile. So it might be a 168 00:11:48,640 --> 00:11:53,160 Speaker 4: little more complicated for them than it would otherwise be 169 00:11:53,440 --> 00:11:58,200 Speaker 4: with another particular religious practice in the schools. But the 170 00:11:58,240 --> 00:12:01,760 Speaker 4: fact that this is a Protestant ten Commandments before a 171 00:12:01,840 --> 00:12:06,400 Speaker 4: court long characterized much of the history in the United 172 00:12:06,400 --> 00:12:10,160 Speaker 4: States as anti Catholic, maybe you would give them pause. 173 00:12:10,400 --> 00:12:12,960 Speaker 3: Well, the next stop is the Fifth Circuit. We'll see 174 00:12:12,960 --> 00:12:16,720 Speaker 3: what happens there first. Thanks so much, Caroline. That's Professor 175 00:12:16,760 --> 00:12:20,959 Speaker 3: Caroline Malikorbin of the University of Miami Law School. I'm 176 00:12:21,000 --> 00:12:24,640 Speaker 3: June Grosso and you're listening to Bloomberg. It's one of 177 00:12:24,760 --> 00:12:29,120 Speaker 3: two Supreme Court cases within a week over securities fraud 178 00:12:29,240 --> 00:12:34,200 Speaker 3: class actions against giant tech companies. Last Wednesday it was 179 00:12:34,280 --> 00:12:38,880 Speaker 3: Meta's Facebook. This Wednesday it was in Vidia. Investors are 180 00:12:38,960 --> 00:12:42,480 Speaker 3: suing in Vidia for misleading them about how much its 181 00:12:42,559 --> 00:12:46,600 Speaker 3: profits depended on the volatile crypto money market. But the 182 00:12:46,640 --> 00:12:51,080 Speaker 3: tech company says the lawsuit isn't supported by evidence like 183 00:12:51,160 --> 00:12:55,640 Speaker 3: company documents to back up its claims. Justice Kataji Brown 184 00:12:55,720 --> 00:12:59,480 Speaker 3: Jackson questioned how the investors could even get that kind 185 00:12:59,520 --> 00:13:02,520 Speaker 3: of evidence at this initial stage of the litigation. 186 00:13:02,920 --> 00:13:06,000 Speaker 5: I guess my concern is that you appear to be 187 00:13:07,280 --> 00:13:11,880 Speaker 5: requiring for plaintiffs to actually have the evidence in order 188 00:13:11,960 --> 00:13:16,800 Speaker 5: to plead their case. And I didn't understand the pleading standards, 189 00:13:16,880 --> 00:13:20,719 Speaker 5: even with particularity, to require that they have the documents. 190 00:13:20,800 --> 00:13:23,760 Speaker 5: Nor do I understand how they could have the documents 191 00:13:23,800 --> 00:13:26,400 Speaker 5: when discovery hasn't occurred yet. 192 00:13:27,040 --> 00:13:30,960 Speaker 3: And several of the justices seem to have buyer's remorse 193 00:13:31,040 --> 00:13:34,080 Speaker 3: about granting review in the case, saying it was two 194 00:13:34,120 --> 00:13:37,880 Speaker 3: facts specific and didn't present the kind of broad legal 195 00:13:37,960 --> 00:13:42,320 Speaker 3: issues that normally prompt Supreme Court review. Here are Justices 196 00:13:42,400 --> 00:13:46,400 Speaker 3: Sonya so To, Mayor Elena Kagan, and Samuel Alito. 197 00:13:46,880 --> 00:13:52,120 Speaker 6: We often don't grant sir to error correct? Is this 198 00:13:52,720 --> 00:13:57,080 Speaker 6: entire case just an error? Correction? Oh, these particular documents 199 00:13:57,120 --> 00:14:00,200 Speaker 6: are not precise enough. It becomes less and less us 200 00:14:00,280 --> 00:14:03,920 Speaker 6: clear why we took this case number one as just 201 00:14:03,920 --> 00:14:06,959 Speaker 6: as sodam your suggested, and number two why you should 202 00:14:06,960 --> 00:14:07,319 Speaker 6: win it. 203 00:14:07,920 --> 00:14:11,320 Speaker 7: This is a highly technical subject and I just don't 204 00:14:11,400 --> 00:14:17,360 Speaker 7: understand how a court is supposed to evaluate that at 205 00:14:17,400 --> 00:14:18,559 Speaker 7: the pleading stage. 206 00:14:19,080 --> 00:14:22,119 Speaker 3: Joining me is Gregory gar a partner at Latham and Watkins, 207 00:14:22,240 --> 00:14:25,400 Speaker 3: and the former Solicitor General of the United States, Greg 208 00:14:25,440 --> 00:14:27,479 Speaker 3: tell Us about the issue before the court. 209 00:14:27,640 --> 00:14:31,640 Speaker 8: So, this case involves the pleading requirements under the Private 210 00:14:31,680 --> 00:14:37,600 Speaker 8: Securities Litigation Reform Act, and specifically what a planiff has 211 00:14:37,640 --> 00:14:42,680 Speaker 8: to show to plead with the requisite particularity when the 212 00:14:42,720 --> 00:14:47,640 Speaker 8: claim is that a company misled investors based on internal 213 00:14:47,680 --> 00:14:50,080 Speaker 8: information that it knew, and the question is, does a 214 00:14:50,160 --> 00:14:53,640 Speaker 8: planiff in that situation have to actually produce or describe 215 00:14:53,680 --> 00:14:57,840 Speaker 8: in detail the internal company documents that the planiff says 216 00:14:57,880 --> 00:15:02,200 Speaker 8: represents the company's knowledge, or can you prove that knowledge 217 00:15:02,280 --> 00:15:05,640 Speaker 8: through inferences by relying on expert reports and the like? 218 00:15:05,960 --> 00:15:10,320 Speaker 3: And so Justice Katanji Brown Jackson said that in video 219 00:15:10,560 --> 00:15:15,240 Speaker 3: was basically asking the plaintiffs to have the evidence at 220 00:15:15,280 --> 00:15:19,160 Speaker 3: the pleating stage before they get discovery. 221 00:15:18,840 --> 00:15:22,440 Speaker 8: Right, And that's the pushback that the more liberal justices 222 00:15:22,760 --> 00:15:27,000 Speaker 8: had for the company's lawyer. The reason for these lawsuits 223 00:15:27,040 --> 00:15:29,960 Speaker 8: is you typically get into federal court by passing the 224 00:15:29,960 --> 00:15:34,000 Speaker 8: pleating requirements, and then you get discovery and potentially access 225 00:15:34,040 --> 00:15:38,040 Speaker 8: to the company's documents. So Justice Jackson sort of said 226 00:15:38,040 --> 00:15:40,680 Speaker 8: that the company was trying to put the planets in 227 00:15:40,800 --> 00:15:46,160 Speaker 8: an impossible bind to produce the documents before discovery had ensued. 228 00:15:46,560 --> 00:15:49,040 Speaker 8: And the company's response to that was that they weren't 229 00:15:49,080 --> 00:15:53,120 Speaker 8: actually requiring the documents themselves, or that they described the 230 00:15:53,160 --> 00:15:57,480 Speaker 8: documents in every detail, but they simply had to describe 231 00:15:57,480 --> 00:16:01,760 Speaker 8: the documents with some particularity. That was really the crux 232 00:16:01,880 --> 00:16:04,320 Speaker 8: of the case that the company put before the court. 233 00:16:04,440 --> 00:16:06,440 Speaker 3: What did you see as the concerns of some of 234 00:16:06,480 --> 00:16:07,480 Speaker 3: the other justices. 235 00:16:07,720 --> 00:16:09,680 Speaker 8: Well, I think that there was a frustration on the 236 00:16:09,720 --> 00:16:13,120 Speaker 8: court that they really weren't presented with a clear legal 237 00:16:13,240 --> 00:16:16,440 Speaker 8: rule on either side of the case, and that ultimately 238 00:16:16,520 --> 00:16:19,760 Speaker 8: the case seemed to boil down to the application of 239 00:16:19,840 --> 00:16:23,720 Speaker 8: existing law to a really long complaint, which is something 240 00:16:23,760 --> 00:16:26,360 Speaker 8: that district courts do all the time, but the Supreme 241 00:16:26,400 --> 00:16:30,160 Speaker 8: Court justices don't do, and particularly don't like to do. 242 00:16:30,320 --> 00:16:32,280 Speaker 8: And so you could see throughout the argument that there 243 00:16:32,320 --> 00:16:34,560 Speaker 8: was a frustration on the part of the justices that 244 00:16:34,600 --> 00:16:37,360 Speaker 8: they were being asked to undertake a task that they 245 00:16:37,400 --> 00:16:40,520 Speaker 8: typically don't do in engaging in a sort of error 246 00:16:40,600 --> 00:16:43,520 Speaker 8: correction based on their own reading of the complaint. 247 00:16:43,600 --> 00:16:47,640 Speaker 3: Yeah, it seems like justices across the ideological spectrum were 248 00:16:47,720 --> 00:16:50,520 Speaker 3: concerned about that and showed a little bit of perhaps 249 00:16:50,720 --> 00:16:53,920 Speaker 3: buyer's remorse. Do you think they were questioning whether they 250 00:16:53,920 --> 00:16:56,120 Speaker 3: should have granted cert in this case? 251 00:16:56,600 --> 00:16:59,480 Speaker 8: I think they were. And of course, the Supreme Court 252 00:16:59,720 --> 00:17:03,960 Speaker 8: gets to decide which cases it hears every year, and 253 00:17:04,000 --> 00:17:07,240 Speaker 8: so it can pick the cases it likes. And here 254 00:17:07,400 --> 00:17:09,840 Speaker 8: I think you're right that there were some buyers remorse 255 00:17:09,880 --> 00:17:12,760 Speaker 8: that the case, once it was fully briefed and presented 256 00:17:12,840 --> 00:17:15,159 Speaker 8: to the court at argument, wasn't necessarily the case that 257 00:17:15,160 --> 00:17:17,879 Speaker 8: they thought they were buying when they agreed to hear it. 258 00:17:17,960 --> 00:17:21,040 Speaker 8: And so one possible outcome is that the court would 259 00:17:21,040 --> 00:17:24,200 Speaker 8: simply decline to decide the case at all and to 260 00:17:24,720 --> 00:17:27,240 Speaker 8: dig it, which means that they would dismiss the writ 261 00:17:27,280 --> 00:17:30,120 Speaker 8: of Cercherai. The rit agreed to hear the case as 262 00:17:30,160 --> 00:17:32,920 Speaker 8: improvidently granted, so the case could simply go away. 263 00:17:33,440 --> 00:17:37,080 Speaker 3: The shareholders claim that in twenty seventeen and twenty eighteen, 264 00:17:37,680 --> 00:17:41,679 Speaker 3: the CEO hid the fact that record revenue growth was 265 00:17:41,720 --> 00:17:45,400 Speaker 3: being driven by mining related sales of the company's graphic 266 00:17:45,560 --> 00:17:49,359 Speaker 3: processing units rather than buy sales for gaming. And it 267 00:17:49,400 --> 00:17:52,239 Speaker 3: was just as Neil Gorzich who really got into that. 268 00:17:53,040 --> 00:17:56,560 Speaker 8: So he pressed the lawyers on both sides really about 269 00:17:56,600 --> 00:17:59,479 Speaker 8: what inferences could be drawn about what the CEO knew, 270 00:17:59,640 --> 00:18:03,560 Speaker 8: and of question whether or not it was plausible that 271 00:18:03,640 --> 00:18:08,159 Speaker 8: a CEO wouldn't know about potential downtick in sales and 272 00:18:08,200 --> 00:18:11,800 Speaker 8: the magnitude alleged here billions of dollars, And so he 273 00:18:11,840 --> 00:18:15,400 Speaker 8: had tough questions and he clearly was, you know, I think, 274 00:18:15,440 --> 00:18:17,560 Speaker 8: prepared to get into the weeds of this case to 275 00:18:17,600 --> 00:18:18,520 Speaker 8: resolve it, just. 276 00:18:18,480 --> 00:18:22,600 Speaker 3: As Kavanaugh expressed a concern that outside groups and in 277 00:18:22,800 --> 00:18:26,800 Speaker 3: Vidia's lawyer had raised that the Ninth Circuit decision being 278 00:18:26,840 --> 00:18:31,800 Speaker 3: appealed here created a sort of blueprint or roadmap for 279 00:18:31,960 --> 00:18:36,960 Speaker 3: plaintiffs to use to get around the heightened pleading requirements 280 00:18:37,240 --> 00:18:40,000 Speaker 3: in the private securities that EGAY should reform. 281 00:18:39,680 --> 00:18:43,520 Speaker 8: Act right and just Kavanaugh was probably the most outspoken 282 00:18:43,960 --> 00:18:46,680 Speaker 8: justice on the side of the company at the World Argument, 283 00:18:46,800 --> 00:18:49,680 Speaker 8: and his concern was that if the Ninth Circuit decision 284 00:18:49,840 --> 00:18:52,919 Speaker 8: in this case is allowed, then it just creates a 285 00:18:52,920 --> 00:18:56,480 Speaker 8: blueprint or recipe for points to file where anytime you 286 00:18:56,560 --> 00:18:59,040 Speaker 8: have a stop drop, you can just go out and 287 00:18:59,080 --> 00:19:02,760 Speaker 8: find an expert that would put together numbers that would 288 00:19:02,760 --> 00:19:06,760 Speaker 8: contradict a company's public statements and then ledge in a 289 00:19:06,840 --> 00:19:10,760 Speaker 8: lawsuit that the company keeps records that its executives look 290 00:19:10,840 --> 00:19:13,560 Speaker 8: at and argued that those records would have matched their 291 00:19:13,600 --> 00:19:18,040 Speaker 8: own experts numbers, And so there you have it. Presto 292 00:19:18,200 --> 00:19:21,720 Speaker 8: a securities action that would proceed past the motion to 293 00:19:21,760 --> 00:19:25,320 Speaker 8: dismiss stage. And in these sorts of cases, particularly with 294 00:19:25,359 --> 00:19:28,719 Speaker 8: class actions, that's really the ballgame. 295 00:19:28,520 --> 00:19:30,919 Speaker 3: Because the pressure on the company is then to settle. 296 00:19:31,160 --> 00:19:34,320 Speaker 8: There's enormous pressure on the companies to settle in that 297 00:19:34,440 --> 00:19:39,679 Speaker 8: context given the potential damages. Although here Justice Kavanaugh actually 298 00:19:39,720 --> 00:19:43,159 Speaker 8: pressed the planoff's lawyer on what the magnitude of the 299 00:19:43,240 --> 00:19:46,400 Speaker 8: damages would be, and the planiff's lawyer was a little 300 00:19:46,400 --> 00:19:48,480 Speaker 8: bit coy and ultimately said he did not know the 301 00:19:48,520 --> 00:19:51,200 Speaker 8: answer to that question, you know, perhaps because the amount 302 00:19:51,280 --> 00:19:52,760 Speaker 8: was potentially quite large. 303 00:19:53,000 --> 00:19:57,200 Speaker 3: Yeah, that was a really interesting exchange as Justice Kavanaugh 304 00:19:57,359 --> 00:20:02,000 Speaker 3: kept pressing the attorney for the plane Tives Deepak Gupta. 305 00:20:02,080 --> 00:20:03,720 Speaker 3: Here's a part of that exchange. 306 00:20:04,280 --> 00:20:07,080 Speaker 8: How much money is at stake in this case? The 307 00:20:07,200 --> 00:20:10,840 Speaker 8: words the few are to prevail ultimately in the. 308 00:20:10,760 --> 00:20:15,879 Speaker 9: Class, not as much as it might seem, because I 309 00:20:15,880 --> 00:20:17,800 Speaker 9: don't want the court to get the impression that this 310 00:20:18,400 --> 00:20:22,360 Speaker 9: enormous delta of sales is what's at issue. It would 311 00:20:22,440 --> 00:20:24,600 Speaker 9: be an issue would be you would have to show 312 00:20:24,640 --> 00:20:27,360 Speaker 9: lost causation and materiality. What are you seeking, like if 313 00:20:27,359 --> 00:20:30,600 Speaker 9: you ran the table, what are you seeking? Roughly, I 314 00:20:30,640 --> 00:20:32,639 Speaker 9: don't know what the numbers are. You're on her. 315 00:20:33,400 --> 00:20:36,720 Speaker 3: Several of the justices seem to be saying too. In 316 00:20:36,800 --> 00:20:40,639 Speaker 3: Nvidia's lawyer, well you want a bright line test, and 317 00:20:40,680 --> 00:20:42,920 Speaker 3: we can't give you a bright line test. And the 318 00:20:43,000 --> 00:20:46,439 Speaker 3: Chief Justice didn't seem to be happy with either side's position. 319 00:20:46,800 --> 00:20:48,840 Speaker 8: He wasn't, as he put it, I think, you know, 320 00:20:48,880 --> 00:20:51,359 Speaker 8: both sides want to present this in black and white terms, 321 00:20:51,440 --> 00:20:53,920 Speaker 8: but there really wasn't a clear rule on either side 322 00:20:54,080 --> 00:20:56,400 Speaker 8: that the court was likely to adopt, and so they 323 00:20:56,400 --> 00:20:59,800 Speaker 8: were left in this middle ground that again probably would 324 00:21:00,000 --> 00:21:02,720 Speaker 8: it is a very narrow ruling that would require the 325 00:21:02,880 --> 00:21:07,040 Speaker 8: justices to roll up their sleeves and apply the pleading 326 00:21:07,080 --> 00:21:11,720 Speaker 8: standard to the particular allegations here in this extensive complaint, 327 00:21:11,760 --> 00:21:14,880 Speaker 8: which is something that the Supreme Court Justices probably don't 328 00:21:14,880 --> 00:21:16,040 Speaker 8: want to spend their time doing. 329 00:21:16,320 --> 00:21:19,040 Speaker 3: In twenty twenty two, in Vidia agreed to pay five 330 00:21:19,080 --> 00:21:22,960 Speaker 3: and a half million dollars to settle related allegations by 331 00:21:23,040 --> 00:21:27,200 Speaker 3: the Securities and Exchange Commission that it didn't properly disclose 332 00:21:27,280 --> 00:21:31,919 Speaker 3: the impact of cryptomining on its gaming business as usual 333 00:21:31,920 --> 00:21:36,159 Speaker 3: without admitting or denying the findings. Does that have any 334 00:21:36,359 --> 00:21:37,720 Speaker 3: impact here? 335 00:21:38,280 --> 00:21:38,359 Speaker 6: Not? 336 00:21:38,520 --> 00:21:38,840 Speaker 9: Really. 337 00:21:38,960 --> 00:21:42,600 Speaker 8: It came up in oral argument the government was participating 338 00:21:42,880 --> 00:21:45,720 Speaker 8: in the case, and the Biden administration came in on 339 00:21:45,800 --> 00:21:49,040 Speaker 8: the side of the plaintiffs here and argued that the 340 00:21:49,119 --> 00:21:52,040 Speaker 8: Ninth Circuit had gotten it right. And the Justices did 341 00:21:52,080 --> 00:21:55,960 Speaker 8: ask about that sec action. But this case is really 342 00:21:55,960 --> 00:21:59,639 Speaker 8: going to rise or fall on its own allegations under 343 00:21:59,680 --> 00:22:01,959 Speaker 8: the demands of the PSLRA. 344 00:22:02,800 --> 00:22:06,679 Speaker 3: Just last week, the Justices were considering whether to shut 345 00:22:06,720 --> 00:22:11,320 Speaker 3: down another class action investors lawsuit against Facebook stemming from 346 00:22:11,359 --> 00:22:16,600 Speaker 3: the privacy scandal, involving the Cambridge Analytical Political consulting firm. 347 00:22:16,920 --> 00:22:20,000 Speaker 3: Is there a reason why they took two similar cases 348 00:22:20,080 --> 00:22:22,360 Speaker 3: this term, is this a real problem? 349 00:22:22,680 --> 00:22:26,560 Speaker 8: I think it's probably fortuitous that the two cases happened 350 00:22:26,560 --> 00:22:29,560 Speaker 8: to come to the Court at the same time. That said, 351 00:22:29,600 --> 00:22:32,000 Speaker 8: both cases came out of the Ninth Circuit, and the 352 00:22:32,080 --> 00:22:34,159 Speaker 8: Ninth Circuit has been sort of a hotbed for this 353 00:22:34,359 --> 00:22:37,800 Speaker 8: kind of litigation, and so it's not surprising in that 354 00:22:37,920 --> 00:22:40,119 Speaker 8: sense that some of these cases has gotten to the 355 00:22:40,119 --> 00:22:42,840 Speaker 8: Supreme Court. But having taken two of these cases and 356 00:22:42,880 --> 00:22:44,800 Speaker 8: heard them in the same week, and I think it's 357 00:22:44,840 --> 00:22:47,160 Speaker 8: sort to say that in most cases the justices were 358 00:22:47,200 --> 00:22:50,440 Speaker 8: grappling for answers. It may be a while before the 359 00:22:50,520 --> 00:22:52,879 Speaker 8: Justices decide to wade back into this area. 360 00:22:54,400 --> 00:22:56,920 Speaker 3: So what's your take. Do you think that there needs 361 00:22:56,920 --> 00:23:01,080 Speaker 3: to be more specificity and pleading in the kinds of cases? 362 00:23:01,440 --> 00:23:04,439 Speaker 8: I think, you know, Congress was wise to pass the 363 00:23:04,480 --> 00:23:08,679 Speaker 8: Private Securities Litigation Reform Act, and those pleading standards you know, 364 00:23:09,119 --> 00:23:12,560 Speaker 8: have and should have teeth. I think in this area 365 00:23:13,000 --> 00:23:15,879 Speaker 8: usually the pleting standard at the motion to the Smiths 366 00:23:15,880 --> 00:23:19,520 Speaker 8: stage is you know, the critical test in the litigation, 367 00:23:19,680 --> 00:23:22,879 Speaker 8: because once you get past that pleting stage, then you 368 00:23:22,960 --> 00:23:26,879 Speaker 8: get discovery. The cost of litigation rise greatly and you 369 00:23:26,920 --> 00:23:30,560 Speaker 8: have a threat of enormous damages that often push defendants 370 00:23:30,560 --> 00:23:33,760 Speaker 8: into settlement even when they strongly believe that there was 371 00:23:33,800 --> 00:23:36,440 Speaker 8: no securities fraud in the first place. So I think 372 00:23:36,480 --> 00:23:39,879 Speaker 8: courts you have to police these requirements carefully. So in 373 00:23:39,880 --> 00:23:42,440 Speaker 8: that sense, it's not surprising that the Supreme Court with 374 00:23:42,640 --> 00:23:45,680 Speaker 8: intervene where it fears that a court has either veered 375 00:23:45,720 --> 00:23:49,280 Speaker 8: from the law or where courts have taken conflicting positions 376 00:23:49,320 --> 00:23:50,760 Speaker 8: on what these standards require. 377 00:23:51,000 --> 00:23:53,760 Speaker 3: Always great to get your insights, Greg, Thanks so much. 378 00:23:54,240 --> 00:23:58,480 Speaker 3: That's Gregorgar of Latham and Watkins, the former US Solicitor General. 379 00:23:58,760 --> 00:24:01,000 Speaker 3: I'm June Grosso on your list, listening to Bloomberg. 380 00:24:01,400 --> 00:24:04,280 Speaker 2: One day one of my new administration, we will begin 381 00:24:04,400 --> 00:24:08,159 Speaker 2: the largest deportation operation in American history. 382 00:24:08,200 --> 00:24:09,200 Speaker 8: We have no choice. 383 00:24:09,400 --> 00:24:13,760 Speaker 3: The centerpiece of Donald Trump's re election campaign was avowed 384 00:24:13,760 --> 00:24:18,119 Speaker 3: to carry out the largest mass deportations of illegal immigrants 385 00:24:18,240 --> 00:24:21,880 Speaker 3: in the country's history, and the President elect has already 386 00:24:21,880 --> 00:24:24,840 Speaker 3: decided on the person to carry out his plan as 387 00:24:24,920 --> 00:24:28,000 Speaker 3: borders are former ICE Director Tom Homan. 388 00:24:28,359 --> 00:24:30,359 Speaker 1: We're going to take the handcuffs off Ice that the 389 00:24:30,359 --> 00:24:31,760 Speaker 1: Biden administration put on him. 390 00:24:31,760 --> 00:24:34,399 Speaker 3: Trump has even decided on the two hundred and twenty 391 00:24:34,400 --> 00:24:36,400 Speaker 3: five year old law he'll use. 392 00:24:36,720 --> 00:24:41,200 Speaker 2: I will invoke the Alien Enemies Act of seventeen ninety eight. 393 00:24:42,280 --> 00:24:46,880 Speaker 3: But there are about eleven million undocumented immigrants in the country, 394 00:24:47,080 --> 00:24:51,359 Speaker 3: and there are laws protecting them, logistical problems sending them home, 395 00:24:51,720 --> 00:24:55,520 Speaker 3: and although Trump says there's no price tag, the cost 396 00:24:55,640 --> 00:24:59,000 Speaker 3: of deporting them is estimated at three hundred and fifty 397 00:24:59,040 --> 00:25:03,000 Speaker 3: billion dollars. Joining me is an expert in immigration law, 398 00:25:03,200 --> 00:25:05,879 Speaker 3: Leon Fresco, a partner at Holland and Knight and the 399 00:25:05,960 --> 00:25:09,040 Speaker 3: former head of the Office of Immigration Litigation at the 400 00:25:09,040 --> 00:25:13,280 Speaker 3: Department of Justice. Join the Obama administration. Leon tell us 401 00:25:13,320 --> 00:25:17,640 Speaker 3: what it would take to carry out these nasty portations 402 00:25:17,680 --> 00:25:19,600 Speaker 3: and some of the obstacles. 403 00:25:19,960 --> 00:25:23,360 Speaker 1: It's going to be a multi stage process, and it's 404 00:25:23,400 --> 00:25:27,240 Speaker 1: going to require an all hands on that governmental approach, 405 00:25:27,359 --> 00:25:30,600 Speaker 1: because this is not just a matter of the Department 406 00:25:30,640 --> 00:25:33,639 Speaker 1: of Homeland Security or ICE or the border. It's going 407 00:25:33,680 --> 00:25:36,520 Speaker 1: to require the State Department. It's going to require the 408 00:25:36,680 --> 00:25:40,760 Speaker 1: entire diplomatic corps negotiating with all of the countries in 409 00:25:40,920 --> 00:25:43,960 Speaker 1: South America, in the Middle East, and in China that 410 00:25:44,040 --> 00:25:47,560 Speaker 1: we're trying to actually deport people too. And so this 411 00:25:47,720 --> 00:25:49,920 Speaker 1: is not going to be a very simple first step. 412 00:25:50,080 --> 00:25:54,000 Speaker 1: You've heard Tom Holman say in various contexts that this 413 00:25:54,080 --> 00:25:57,840 Speaker 1: isn't going to just be a grab bag where individuals 414 00:25:58,200 --> 00:26:01,639 Speaker 1: are simply apprehended for no reason, but that there's going 415 00:26:01,720 --> 00:26:04,400 Speaker 1: to be a targeted effort here. So the first targeted 416 00:26:04,440 --> 00:26:09,199 Speaker 1: effort would obviously be criminal non citizens. So anybody with 417 00:26:09,240 --> 00:26:11,640 Speaker 1: a criminal record is going to be the number one 418 00:26:11,720 --> 00:26:15,480 Speaker 1: top priority for removal. So the question is, well, when 419 00:26:15,520 --> 00:26:19,360 Speaker 1: you apprehend those individuals, where do you put them? There's 420 00:26:19,400 --> 00:26:22,880 Speaker 1: about forty to forty five thousand beds that are available 421 00:26:22,960 --> 00:26:27,240 Speaker 1: right now. Obviously, if you're doing the largest deportation program 422 00:26:27,240 --> 00:26:29,520 Speaker 1: in history, you're going to need a lot more beds. 423 00:26:29,680 --> 00:26:32,800 Speaker 1: Where are those beds coming from. We've heard the idea 424 00:26:32,880 --> 00:26:35,400 Speaker 1: that that could be a military basis, that there would 425 00:26:35,440 --> 00:26:40,200 Speaker 1: be barrack for that purpose. So fine, you place people 426 00:26:40,240 --> 00:26:43,760 Speaker 1: in those military barracks, you have them in detention, you 427 00:26:43,840 --> 00:26:48,360 Speaker 1: put them in detention proceeding, And the question is will 428 00:26:48,400 --> 00:26:50,840 Speaker 1: there be a place to actually deport those people to 429 00:26:50,960 --> 00:26:53,080 Speaker 1: when this is all said and done, will there be 430 00:26:53,160 --> 00:26:56,600 Speaker 1: countries that are willing to actually accept these individuals. So 431 00:26:56,720 --> 00:26:59,439 Speaker 1: that's where again the State Department is going to have 432 00:26:59,520 --> 00:27:01,600 Speaker 1: to play in What kind of. 433 00:27:01,680 --> 00:27:06,480 Speaker 3: Due process would the immigrants be entitled to before being deported? 434 00:27:07,080 --> 00:27:09,080 Speaker 1: The question is, are you going to need to do 435 00:27:09,119 --> 00:27:12,919 Speaker 1: a whole due process deportation hearing where these hearings are 436 00:27:12,920 --> 00:27:15,840 Speaker 1: currently backed up by seven years in the immigration court, 437 00:27:16,359 --> 00:27:18,280 Speaker 1: or will Trump be able to get away with using 438 00:27:18,320 --> 00:27:21,280 Speaker 1: what's called the Alien Enemies Act, which is a law 439 00:27:21,680 --> 00:27:25,480 Speaker 1: that's been around since the late seventeen hundred, which allows 440 00:27:25,680 --> 00:27:28,960 Speaker 1: deportation without due process. But you have to show that 441 00:27:29,080 --> 00:27:34,640 Speaker 1: a country is specifically trying to infiltrate the United States 442 00:27:34,640 --> 00:27:38,560 Speaker 1: with people designed to destabilize the United States. So will 443 00:27:38,840 --> 00:27:41,920 Speaker 1: that be reviewable in a court of law? Because courts 444 00:27:41,960 --> 00:27:44,280 Speaker 1: have said that things like that in the past are 445 00:27:44,280 --> 00:27:47,919 Speaker 1: political questions that are not reviewable. Will they be reviewable? 446 00:27:48,000 --> 00:27:51,200 Speaker 1: And if they are reviewable, will courts say that any 447 00:27:51,320 --> 00:27:54,560 Speaker 1: country people are from is actually doing this on purpose, 448 00:27:54,680 --> 00:27:58,920 Speaker 1: is actually sending criminal foreign nationals into the United States 449 00:27:58,920 --> 00:28:01,720 Speaker 1: for the purpose of the states the country. So all 450 00:28:01,760 --> 00:28:03,879 Speaker 1: of those are questions that are going to have to 451 00:28:03,920 --> 00:28:08,040 Speaker 1: be grappled with pretty early on in order to determine 452 00:28:08,040 --> 00:28:11,160 Speaker 1: whether such an operation could be successful. 453 00:28:11,720 --> 00:28:13,960 Speaker 3: Will it be difficult for ice to even find the 454 00:28:14,000 --> 00:28:15,800 Speaker 3: people it wants to deport. 455 00:28:16,040 --> 00:28:18,520 Speaker 1: Well, believe it or not, that's actually the easy part. 456 00:28:18,600 --> 00:28:21,919 Speaker 1: These days. With all of the artificial intelligence that is 457 00:28:22,080 --> 00:28:26,880 Speaker 1: has procured in the last several years and databases and documents, 458 00:28:27,000 --> 00:28:30,560 Speaker 1: pretty much anyone who's left any kind of digital footprint, 459 00:28:30,880 --> 00:28:33,399 Speaker 1: ICE knows where they are, either from their cells, phone, 460 00:28:33,480 --> 00:28:37,679 Speaker 1: their car, whether they ordered a pizza, anything of this nature. 461 00:28:37,880 --> 00:28:40,080 Speaker 1: So unless you've been living in the middle of the 462 00:28:40,120 --> 00:28:42,880 Speaker 1: woods as a hermit, ice will be able to find 463 00:28:42,920 --> 00:28:45,760 Speaker 1: you if it wants to find you, relatively quickly. So 464 00:28:45,920 --> 00:28:49,200 Speaker 1: that's sort of a twentieth century concern at this point. 465 00:28:49,560 --> 00:28:52,120 Speaker 1: The finding is the easy part. The question is what 466 00:28:52,200 --> 00:28:53,960 Speaker 1: do you do when you find the person? Where do 467 00:28:54,000 --> 00:28:58,280 Speaker 1: you literally detain the person? And where do you actually 468 00:28:58,400 --> 00:29:01,960 Speaker 1: deport the person? And that where the Trump administration is 469 00:29:02,000 --> 00:29:03,600 Speaker 1: going to have their work cut out for them. 470 00:29:03,920 --> 00:29:09,160 Speaker 3: Which countries have not agreed to receive deportation flights, So 471 00:29:09,320 --> 00:29:10,120 Speaker 3: right now. 472 00:29:09,960 --> 00:29:13,160 Speaker 1: It's almost impossible to deport anyone to China, which is 473 00:29:13,200 --> 00:29:15,840 Speaker 1: a big source of our removal orders. We have tens 474 00:29:15,840 --> 00:29:18,880 Speaker 1: of thousands of not over one hundred thousand removal orders 475 00:29:18,920 --> 00:29:21,600 Speaker 1: for people who can be deported to China, but China 476 00:29:21,640 --> 00:29:25,360 Speaker 1: won't accept those individuals. Cuba is another big one. Cuba. 477 00:29:25,400 --> 00:29:28,160 Speaker 1: There's probably hundreds of thousands of Cubans who can be 478 00:29:28,240 --> 00:29:31,720 Speaker 1: deported to Cuba, but Cuba has not and probably will 479 00:29:31,720 --> 00:29:35,000 Speaker 1: not accept people. Given the country is almost in complete 480 00:29:35,120 --> 00:29:39,000 Speaker 1: ruins and there's another hurricane potentially coming there and so 481 00:29:39,080 --> 00:29:42,760 Speaker 1: the country is still destabilized. Accepting hundreds of thousands of 482 00:29:42,760 --> 00:29:46,440 Speaker 1: people is likely not an option there. Venezuela has not 483 00:29:46,560 --> 00:29:51,520 Speaker 1: accepted recently people to be deported back to Venezuela. Haiti 484 00:29:51,960 --> 00:29:55,440 Speaker 1: basically has no government. They fired their prime minister. How 485 00:29:55,480 --> 00:29:59,280 Speaker 1: do you deport people there? Nicaragua is another country that 486 00:29:59,520 --> 00:30:02,680 Speaker 1: doesn't let people get deported back to Nicaragua from the 487 00:30:02,760 --> 00:30:07,640 Speaker 1: United States. And so those are just some examples, but 488 00:30:08,040 --> 00:30:10,720 Speaker 1: pretty much any country, if you're going to start doing 489 00:30:10,920 --> 00:30:15,320 Speaker 1: large numbers of people may start objecting to that as saying, look, 490 00:30:15,320 --> 00:30:18,680 Speaker 1: you're going to destabilize our country. Because the United States 491 00:30:18,720 --> 00:30:21,360 Speaker 1: is a big country with three hundred and fifty million people, 492 00:30:21,800 --> 00:30:24,920 Speaker 1: but countries with a million people, if you suddenly put 493 00:30:24,920 --> 00:30:29,360 Speaker 1: in fifty thousand deportees who are all criminals, that could 494 00:30:29,440 --> 00:30:32,680 Speaker 1: lead to quite the destabilization in those countries, and so 495 00:30:32,760 --> 00:30:37,000 Speaker 1: they may do everything possible to try to thwart these deportations. 496 00:30:37,040 --> 00:30:40,080 Speaker 3: Trump said on NBC. I think that there's no price 497 00:30:40,120 --> 00:30:43,600 Speaker 3: tag on this, but I saw estimates that put the 498 00:30:43,640 --> 00:30:46,000 Speaker 3: cost at more than three hundred billion dollars. 499 00:30:46,560 --> 00:30:50,440 Speaker 1: Well, it depends what kinds of costs you're incorporating into this. 500 00:30:50,600 --> 00:30:53,560 Speaker 1: So first of all, there's the normal cost that everyone 501 00:30:53,600 --> 00:30:56,800 Speaker 1: would agree to include, which are the costs of detention, 502 00:30:57,360 --> 00:31:00,360 Speaker 1: which include obviously care and feeding and medicine and all 503 00:31:00,400 --> 00:31:02,680 Speaker 1: of that for the people while they're in custody. The 504 00:31:02,760 --> 00:31:05,920 Speaker 1: cost of the actual removal itself, the planes. Many times 505 00:31:05,960 --> 00:31:09,560 Speaker 1: ICE uses chartered planes to do this, all of that, 506 00:31:09,680 --> 00:31:12,640 Speaker 1: But then they talk about the cost of what happens 507 00:31:12,640 --> 00:31:17,840 Speaker 1: then to the economy because interestingly, an undocumented person when 508 00:31:17,840 --> 00:31:21,920 Speaker 1: they're working in the United States is a net positive 509 00:31:22,000 --> 00:31:24,920 Speaker 1: to the US federal budget because what's happening is they're 510 00:31:24,920 --> 00:31:28,360 Speaker 1: paying taxes and they're not getting any benefits because they 511 00:31:28,400 --> 00:31:31,640 Speaker 1: don't qualify for any benefits. And so this is actually 512 00:31:31,720 --> 00:31:34,760 Speaker 1: something that the Congressional Budget Office talks about all the time. 513 00:31:35,080 --> 00:31:38,120 Speaker 1: It's only when people get status and can get benefits 514 00:31:38,240 --> 00:31:41,400 Speaker 1: that they become potentially a net negative to the budget. 515 00:31:41,640 --> 00:31:45,440 Speaker 1: But when you remove all these undocumented workers from the economy, 516 00:31:45,680 --> 00:31:49,960 Speaker 1: you actually create a larger budget deficit hole, and so 517 00:31:50,080 --> 00:31:53,360 Speaker 1: that's also being counted toward those three hundred billion dollars. 518 00:31:53,640 --> 00:31:57,200 Speaker 3: There are some immigration policies that Trump wants to put 519 00:31:57,240 --> 00:32:00,800 Speaker 3: in place. Again, why does the remain in Mexico. How 520 00:32:00,840 --> 00:32:02,600 Speaker 3: difficult would it be to restore that? 521 00:32:03,000 --> 00:32:03,160 Speaker 5: Well? 522 00:32:03,240 --> 00:32:05,840 Speaker 1: Under the remain in Mexico policy, the way that would 523 00:32:05,880 --> 00:32:08,640 Speaker 1: work is that in an individual enters the United States 524 00:32:08,680 --> 00:32:12,280 Speaker 1: and asks for asylum, their asylum application is put into 525 00:32:12,280 --> 00:32:15,400 Speaker 1: the system and is put in line. But where you 526 00:32:15,520 --> 00:32:19,560 Speaker 1: wait is in Mexico. You don't wait in the United States. 527 00:32:19,600 --> 00:32:23,560 Speaker 1: And so that was finally allowed by the Supreme Court 528 00:32:23,600 --> 00:32:27,080 Speaker 1: as legal in twenty nineteen and was about to be 529 00:32:27,120 --> 00:32:31,360 Speaker 1: implemented in earnest by the Trump administration until COVID happened, 530 00:32:31,720 --> 00:32:34,400 Speaker 1: And then that didn't end up happening because what happened 531 00:32:34,440 --> 00:32:37,680 Speaker 1: was instead of putting the cases in the line, the 532 00:32:37,720 --> 00:32:42,400 Speaker 1: Trump administration simply just rejected people. And that actually continued 533 00:32:42,400 --> 00:32:45,560 Speaker 1: into the Biden administration, and, believe it or not, as 534 00:32:45,600 --> 00:32:49,720 Speaker 1: happening now. So the remain in Mexico policy will only 535 00:32:49,760 --> 00:32:53,280 Speaker 1: be needed if the band that is currently in place 536 00:32:53,360 --> 00:32:56,640 Speaker 1: which the Biden administration has in place at the moment, 537 00:32:57,160 --> 00:33:00,480 Speaker 1: is overturned by the court. Now it is likely to 538 00:33:00,520 --> 00:33:02,640 Speaker 1: be overturned by the courts. That case has sort of 539 00:33:02,640 --> 00:33:06,040 Speaker 1: been low walked because of the election. I don't think 540 00:33:06,080 --> 00:33:10,480 Speaker 1: that the people suing wanted to destabilize the border situation 541 00:33:10,640 --> 00:33:14,000 Speaker 1: right before the election. But now that the election has happened, 542 00:33:14,040 --> 00:33:18,280 Speaker 1: that case is back up in the forefront. And if 543 00:33:18,280 --> 00:33:22,840 Speaker 1: the Biden border policy is enjoined, which is essentially a ban, 544 00:33:23,000 --> 00:33:26,800 Speaker 1: nobody can apply for asylum right now who entered illegally 545 00:33:27,080 --> 00:33:30,760 Speaker 1: into the United States. If that ban is taken away 546 00:33:30,920 --> 00:33:33,240 Speaker 1: by the courts and said that that ban is illegal, 547 00:33:33,560 --> 00:33:36,600 Speaker 1: that's when the Trump administration will need to use remain 548 00:33:36,720 --> 00:33:41,280 Speaker 1: in Mexico. And the obstacle there is that Mexico has 549 00:33:41,280 --> 00:33:43,560 Speaker 1: to agree to do this, and a couple of things 550 00:33:43,560 --> 00:33:46,480 Speaker 1: have happened since the last Trump administration. The Supreme Court 551 00:33:46,760 --> 00:33:50,080 Speaker 1: of Mexico has said that that's not legal. But the 552 00:33:50,200 --> 00:33:53,840 Speaker 1: question will be what does that mean If Trump threatens 553 00:33:53,960 --> 00:33:57,760 Speaker 1: Mexico with fifty percent tariffs on their cars unless they 554 00:33:57,800 --> 00:34:01,520 Speaker 1: do this. Does the new president of Mexico, Miss Shinbaum, 555 00:34:01,960 --> 00:34:04,040 Speaker 1: then say, well, we're gonna have to figure something out 556 00:34:04,040 --> 00:34:06,440 Speaker 1: with our Supreme Court and everything else to make this 557 00:34:06,640 --> 00:34:09,480 Speaker 1: a possibility, because we don't want fifty percent tariffs on 558 00:34:09,520 --> 00:34:13,320 Speaker 1: our cars. So all of these levers are in play 559 00:34:13,520 --> 00:34:16,600 Speaker 1: to try to figure out whether remain in Mexico needs 560 00:34:16,600 --> 00:34:19,080 Speaker 1: to be placed back and can it be placed back? 561 00:34:19,360 --> 00:34:21,160 Speaker 3: And what do you think about the choice of Tom 562 00:34:21,200 --> 00:34:22,720 Speaker 3: Holman as borders. 563 00:34:22,239 --> 00:34:24,919 Speaker 1: Are Tom Holman, the thing I can say about him 564 00:34:25,000 --> 00:34:28,359 Speaker 1: is he has always been, under many different presidents, a 565 00:34:28,400 --> 00:34:32,120 Speaker 1: public servant who salutes the flag, and when people have 566 00:34:32,320 --> 00:34:35,640 Speaker 1: given him a lawful order, he has executed the lawful order. 567 00:34:35,800 --> 00:34:38,200 Speaker 1: And so this is what he's being charged to do now, 568 00:34:38,320 --> 00:34:42,399 Speaker 1: is to lead the largest deportation program in history. Now, 569 00:34:42,520 --> 00:34:46,360 Speaker 1: because he comes from Ice and because he has lived 570 00:34:46,360 --> 00:34:51,880 Speaker 1: this for several decades, he understands the actual challenges from 571 00:34:51,920 --> 00:34:55,640 Speaker 1: a legal and logistical standpoint in a way that appointing 572 00:34:55,800 --> 00:34:59,080 Speaker 1: somebody who's a more political person but less of a 573 00:34:59,160 --> 00:35:02,560 Speaker 1: detailed orient the person wouldn't know. And that's why I've 574 00:35:02,600 --> 00:35:04,759 Speaker 1: heard come home and say things like, look, we're gonna 575 00:35:04,800 --> 00:35:07,560 Speaker 1: have priorities, We're going to have certain people that we 576 00:35:07,719 --> 00:35:09,919 Speaker 1: look at first, because at the end of the day, 577 00:35:10,000 --> 00:35:12,640 Speaker 1: that's actually how you have to do this Leon. 578 00:35:12,719 --> 00:35:16,640 Speaker 3: We've talked a lot about the obstacles, but bottom line, 579 00:35:16,920 --> 00:35:19,320 Speaker 3: do you think Trump will be able to carry out 580 00:35:19,360 --> 00:35:21,800 Speaker 3: these nass deportations? 581 00:35:22,280 --> 00:35:26,120 Speaker 1: People don't remember what happened in two thousand and seven. 582 00:35:26,160 --> 00:35:28,799 Speaker 1: Two thousand and seven was the last time there was 583 00:35:28,880 --> 00:35:33,560 Speaker 1: actually any significant robust immigration enforcement in the middle of 584 00:35:33,600 --> 00:35:37,280 Speaker 1: the street, these sort of large scale raids of work fits. 585 00:35:37,680 --> 00:35:40,960 Speaker 1: When that last happened, that puts such fear in the 586 00:35:41,000 --> 00:35:45,000 Speaker 1: immigrant community that people stopped going to work, people were hiding. 587 00:35:45,200 --> 00:35:48,520 Speaker 1: So what I think they're actually trying to accomplish more 588 00:35:48,560 --> 00:35:51,439 Speaker 1: than anything, is like what you're seeing in all these 589 00:35:51,480 --> 00:35:54,440 Speaker 1: other areas with foreign policy and with tariffs and where 590 00:35:54,480 --> 00:35:57,840 Speaker 1: everything else, you sort of lay down a marker that 591 00:35:57,920 --> 00:35:59,840 Speaker 1: this is going to be the worst thing you've ever seen. 592 00:36:00,400 --> 00:36:03,480 Speaker 1: And what you're hoping it does is it incentivizes enough 593 00:36:03,520 --> 00:36:06,239 Speaker 1: people to self support you are going to see a 594 00:36:06,320 --> 00:36:10,279 Speaker 1: more robust effort to remove people. But I think at 595 00:36:10,280 --> 00:36:13,520 Speaker 1: the end of the day, if four hundred thousand people 596 00:36:13,600 --> 00:36:16,879 Speaker 1: end up getting removed in twenty twenty five, that might 597 00:36:16,960 --> 00:36:21,440 Speaker 1: be ambitious based on where the infrastructure is now, and 598 00:36:21,480 --> 00:36:24,520 Speaker 1: so we're not talking about ten millions but the hope 599 00:36:24,600 --> 00:36:27,400 Speaker 1: is that if it's done in a way that creates 600 00:36:27,520 --> 00:36:32,040 Speaker 1: enough nervousness in the community, that individuals will decide that 601 00:36:32,160 --> 00:36:34,880 Speaker 1: they can't live with this level of nervousness and they 602 00:36:34,920 --> 00:36:37,680 Speaker 1: would take matters into their own hands and leave the country. 603 00:36:38,120 --> 00:36:41,799 Speaker 3: Thanks Leon, always a pleasure. That's Leon Fresco of Honda Knight. 604 00:36:42,120 --> 00:36:44,560 Speaker 3: And that's it for this edition of the Bloomberg Law Show. 605 00:36:44,920 --> 00:36:47,200 Speaker 3: Remember you can always get the latest legal news by 606 00:36:47,200 --> 00:36:51,000 Speaker 3: subscribing to the Bloomberg Law Podcast or downloading this show 607 00:36:51,000 --> 00:36:55,040 Speaker 3: at Bloomberg dot com, slash podcast, slash Law. I'm joom 608 00:36:55,080 --> 00:36:56,880 Speaker 3: Bronco and you're listening to Bloomberg