WEBVTT - Weekend Law: Prosecuting ICE, Social Media Addiction & Kid Rock Testifies

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<v Speaker 1>This is Bloomberg Law with June Grosso from Bloomberg Radio.

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<v Speaker 2>Temperatures dipped into negative numbers Friday morning in Minneapolis, but

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<v Speaker 2>crowds of demonstrators still turned out at the Federal Building

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<v Speaker 2>to protest ICE operations in the state that led to

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<v Speaker 2>the killing of two US citizens by federal immigration agents.

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<v Speaker 2>Also on Friday, in a significant reversal, Deputy Attorney General

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<v Speaker 2>Todd Blanche announced that the Justice Department has opened a

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<v Speaker 2>civil rights investigation into the shooting of alex Pretty by

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<v Speaker 2>two Border patrol agents.

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<v Speaker 3>We're looking at everything that would get shed light on

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<v Speaker 3>what happened that day and in the days and weeks

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<v Speaker 3>leading up to what happened. And that's like any investigation

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<v Speaker 3>that the Department of Justice and the FBI does every day.

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<v Speaker 3>It means we're looking at videos, talking to witnesses, trying

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<v Speaker 3>to understand what happened. I mean, you're talking about an

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<v Speaker 3>incredibly tragic morning.

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<v Speaker 2>Previously, ICE's Homeland Security Investigations Branch had been leading the investigation,

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<v Speaker 2>and investigating law enforcement shootings is not something they're usually

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<v Speaker 2>tasked with. Joining me is former Palm Beach County State

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<v Speaker 2>Attorney Dave Ehrenberg.

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<v Speaker 1>Dave.

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<v Speaker 2>Let's look at the potential legal repercussions for the agents

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<v Speaker 2>involved in these shootings. So the federal government could prosecute

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<v Speaker 2>these agents, but under what circumstances.

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<v Speaker 4>Yes, the federal government has the power to prosecute those

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<v Speaker 4>who act unreasonably in the circumstances if they were reckless

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<v Speaker 4>in discharging their duties. Yes, but the federal government has

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<v Speaker 4>said that they will not even investigate.

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<v Speaker 5>They were in a good shooting.

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<v Speaker 4>Now, when it comes to the Alex Pretty shooting, President

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<v Speaker 4>Trump said that they will have an investigation. So it's

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<v Speaker 4>unsure at this point whether they would move ahead for

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<v Speaker 4>the Pretty shooting, which, by the way, I think has

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<v Speaker 4>a stronger case of a prosecution there. I think that

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<v Speaker 4>the agent's actions there multiple agents are more likely to

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<v Speaker 4>be open to criminal liability than the shooting death of

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<v Speaker 4>Renee Good.

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<v Speaker 2>Explain why the Pretty case is stronger.

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<v Speaker 4>The Renee Good shooting. You had an agent who could

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<v Speaker 4>argue he was in reasonable fear of his life because

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<v Speaker 4>the card did lurch towards him, even though it was

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<v Speaker 4>clear that she was trying to avoid the agent. She

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<v Speaker 4>was pulling her card to the right, the steering wheel

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<v Speaker 4>to the right. But the card did lurch forward. You

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<v Speaker 4>could hear him say WHOA. And because of that, I

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<v Speaker 4>can see how a jury would say, yeah, he was

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<v Speaker 4>in reasonable fear of his life and that's why he shot. Now,

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<v Speaker 4>the problem in that case is that he shot a

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<v Speaker 4>second and third time when he was not in any danger.

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<v Speaker 4>But oftentimes they will look at all the shots together,

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<v Speaker 4>like if you can shoot once, they'll say you can

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<v Speaker 4>continue shooting until the threat is neutralized. Prosecutors in that

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<v Speaker 4>case will slow down the video to make each shot

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<v Speaker 4>unique on its own, as opposed to one quick decision. Now,

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<v Speaker 4>when it comes to Alex Preddy, you had situation where

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<v Speaker 4>he was not engaging in any criminal behavior. He was

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<v Speaker 4>trying to help a woman who had been pushed down

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<v Speaker 4>by an over aggressive border control agent. And then he

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<v Speaker 4>got pepper spray for his troubles, and then he was

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<v Speaker 4>thrown to the ground, and then he had seven different

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<v Speaker 4>agents on top of him. They saw him with a

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<v Speaker 4>phone the entire time, and the gun he had was

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<v Speaker 4>concealed and he had a permit for it, and then

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<v Speaker 4>it was taken away. And after it was taken away,

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<v Speaker 4>then someone yelled that gun and perhaps that gun went off.

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<v Speaker 4>The one that was taken away and ten shots rang

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<v Speaker 4>out in five seconds. He was shot ten times at

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<v Speaker 4>five seconds, so I think that one is going to

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<v Speaker 4>be tougher to defend.

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<v Speaker 5>They may say was a.

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<v Speaker 4>Mistake of fact where they thought that the gun went off,

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<v Speaker 4>but I don't think it's reasonable, based on the videos

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<v Speaker 4>for them to believe that he had a gun in

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<v Speaker 4>his hand that was going off against them.

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<v Speaker 2>The top blow prosecutor in Minneapolis has opened homicide investigations

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<v Speaker 2>into both shootings, but federal officers are generally immune from

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<v Speaker 2>state prosecutions. Explain how the officers would raise that, how

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<v Speaker 2>it would work.

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<v Speaker 4>What's going to happen is that the federal government is

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<v Speaker 4>unlikely to prosecute the cases, and so the state of

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<v Speaker 4>Minnesota will seek a criminal indictment. They can undergo a separate,

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<v Speaker 4>independent investigation, which I think has already begun, and then

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<v Speaker 4>they can seek a grand jury indictment, which I think

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<v Speaker 4>they will. And when that happens, the federal agent, because

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<v Speaker 4>he's a federal agent, will ask to remove the case

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<v Speaker 4>of federal court. Now the case will still be a

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<v Speaker 4>state prosecution. You'll have state prosecutors, you'll have state law

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<v Speaker 4>enforce but the case would be in federal court with

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<v Speaker 4>a federal judge and a federal jury, which means that

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<v Speaker 4>the jury pool will consist of residents of Minnesota from

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<v Speaker 4>all over the state, so advantage to the defendant. But

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<v Speaker 4>when it comes to im unity, the federal judge would

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<v Speaker 4>make that call, and the question is did the agent

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<v Speaker 4>or agents act in furtherance of the duties in a

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<v Speaker 4>way that was necessary and proper to carry out their duties?

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<v Speaker 4>And if the answer is yes, then he gets immunity

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<v Speaker 4>and it's game over. There will be no prosecution. If

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<v Speaker 4>he says no, it'll be appealed, but then it'd be

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<v Speaker 4>game on for a state prosecution in front of that

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<v Speaker 4>federal jury.

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<v Speaker 2>The state's at a disadvantage here in its investigation because

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<v Speaker 2>the federal government is refusing to share the evidence that

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<v Speaker 2>it's collected.

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<v Speaker 4>This case is so unusual because when I was state

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<v Speaker 4>attorney in Palm Beach County for twelve years, we worked

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<v Speaker 4>with the Feds. The Feds would come in and sometimes

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<v Speaker 4>they would say they want to take the case, and

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<v Speaker 4>we would stand down. Normally, if the Feds say we're

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<v Speaker 4>not giving you the evidence, it's because they want to

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<v Speaker 4>preserve the integrity of the evidence so they can do

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<v Speaker 4>their own prosecution, not to prevent a suspect from ever

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<v Speaker 4>being prosecuted. So this is uncharted territory. So this is

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<v Speaker 4>what I think will happen. I think the state is

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<v Speaker 4>going to file a lawsuit in federal court to get

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<v Speaker 4>the federal government to turn over the evidence. I think

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<v Speaker 4>the state is going to ask a federal judge to

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<v Speaker 4>require the federal government to turn over the evidence they have.

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<v Speaker 4>And I think I'll have a good claim here because

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<v Speaker 4>the federal governments may clear that they're not going to

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<v Speaker 4>even investigate they were in a good shooting. And I

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<v Speaker 4>think the federal judge, whoever it is in this case,

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<v Speaker 4>will say, you can't conceal the evidence from state authorities

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<v Speaker 4>for the purpose of protecting a suspect. Only if you

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<v Speaker 4>really have a good faith basis for investigating yourself and

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<v Speaker 4>prosking the case yourself, can you withhold evidence from the state.

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<v Speaker 4>So I think that the federal judge will grant the

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<v Speaker 4>state's motion. But even if they don't, even if the

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<v Speaker 4>state does not get the evidence from the Feds, the

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<v Speaker 4>state prosecutors already started a web portal where they're seeking

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<v Speaker 4>and obtaining videos and witness testimony and other evidence pertain

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<v Speaker 4>to the case, and you could file charges. In this case,

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<v Speaker 4>you can get indictment based on the videos. Al you

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<v Speaker 4>don't need necessarily to have the car because the Feds

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<v Speaker 4>have the car when it comes to Rene Good and

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<v Speaker 4>that would be helpful, but the state doesn't need it

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<v Speaker 4>to seek charges because remember, when you get indictment, you

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<v Speaker 4>just need problem cause once someone's indicted, then discovery begins

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<v Speaker 4>and then you'll get more information and it doesn't do

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<v Speaker 4>the it would be defendants in this case. The agents

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<v Speaker 4>doesn't do them any favors by withholding the evidence from

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<v Speaker 4>the state because the evidence that the federal government has

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<v Speaker 4>can also be exculpatory, meaning it could be to the

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<v Speaker 4>defendant's benefit, especially because the FEDS are a favorable agency

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<v Speaker 4>for these ice and Border control agents. So that's why

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<v Speaker 4>I would think as defendants, they would want the federal

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<v Speaker 4>government to turn over all evidence they have to the

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<v Speaker 4>state or else the state is going to do their

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<v Speaker 4>own investigation, and I think it will result in an indictment.

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<v Speaker 2>And besides the immunity defense, what other defenses could the

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<v Speaker 2>agents raise if they are prosecuted.

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<v Speaker 4>Well, immunity is not even raised a trial. Immunity comes

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<v Speaker 4>before and now would shut it down. That prevents a

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<v Speaker 4>trial to happen in the first place. So if it

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<v Speaker 4>does go to trial, they would say that we acted

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<v Speaker 4>reasonably under the circumstances that their lives were at risk,

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<v Speaker 4>where they had an imminent threat against their lives, and

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<v Speaker 4>the imminent threat in the first case would be the

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<v Speaker 4>car lurching towards the ice agent. In the second case,

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<v Speaker 4>Alex Pretty, they would say mistake of fact, that they

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<v Speaker 4>were in reasonable fear of their life, even though it

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<v Speaker 4>was a mistake, but that mistake was reasonable because this

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<v Speaker 4>guy had a gun and they didn't know it was

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<v Speaker 4>taken away. It was all happening so quickly. And this

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<v Speaker 4>is their defense. I'm putting myself in their shoes. And

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<v Speaker 4>they would say that when someone yelled out gun and

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<v Speaker 4>then they heard a gun shot, they reacted the way

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<v Speaker 4>they were taught to neutralize the threat.

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<v Speaker 5>Now they'll say that whether it's.

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<v Speaker 4>One shot or ten, you shoot to kill, you shoot

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<v Speaker 4>to neutralize the threat. So that's going to be their defense.

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<v Speaker 4>I think it's a tougher defense in the Pretty case

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<v Speaker 4>and in the Renee Good case.

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<v Speaker 2>Does the defense have an advantage if the case is

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<v Speaker 2>tried in federal court even under state law.

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<v Speaker 4>The defendants will certainly remove the case of federal court

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<v Speaker 4>to get a jury pool from the entire state of Minnesota,

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<v Speaker 4>because in federal court, there's one judicial district, and that's

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<v Speaker 4>the entire state. Residents of Minnesota from all over the state, conservative, liberal,

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<v Speaker 4>not just from blue Hennepin County. So instead of getting

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<v Speaker 4>people who are angry about what's happening in Hennepin County,

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<v Speaker 4>you'll get a cross section of the entire state, including Republicans.

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<v Speaker 4>And that's why, even if this does go to trial

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<v Speaker 4>and immunity is rejected, it is still an uphill battle

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<v Speaker 4>for prosecutors because you've got to prove beyond a reasonable

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<v Speaker 4>doubt in front of a unanimous jury that these agents

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<v Speaker 4>committed crimes. And you have a natural inclination of people

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<v Speaker 4>to believe law enforcement, to trust law enforcement, to give

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<v Speaker 4>them the benefit of the doubt. And you have politics

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<v Speaker 4>at play where people can see the same video and

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<v Speaker 4>it's like a warshock test where they interpret it differently,

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<v Speaker 4>And so how are you going to get twelve jurors

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<v Speaker 4>to all agree one way? That's the challenge that prosecutors face, Dave.

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<v Speaker 2>There are so many video already of the pretty shooting

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<v Speaker 2>from different angles. Does that make it easier for the

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<v Speaker 2>prosecutors or perhaps not just more confusing.

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<v Speaker 4>I think the more videos the better, the more transparency,

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<v Speaker 4>the more angles the better, because if you don't have

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<v Speaker 4>the full picture, you're gonna have reasonable doubt.

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<v Speaker 5>So there you go.

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<v Speaker 4>If you're the government, you want to have enough proof

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<v Speaker 4>that you can prove the unreasonable doubt that these officers

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<v Speaker 4>were not in imminent danger and it was not reasonable

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<v Speaker 4>for them to think.

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<v Speaker 5>That their lives were at risk.

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<v Speaker 4>But that's what good lawyering is about, is about deciding

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<v Speaker 4>how to present the videos. For example, in the Rodney

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<v Speaker 4>King case, you remember that the prosecution showed the video

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<v Speaker 4>and I was appalling a horrific video, but the defense

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<v Speaker 4>slowed it down, frame by frame and they showed see

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<v Speaker 4>the officer reacted here because Rodney King was resisting, and

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<v Speaker 4>they showed that in slow motion and he was acquitted

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<v Speaker 4>at the state level. Well, in this case, they're going

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<v Speaker 4>to slow the video down to try to convict the officers.

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<v Speaker 4>It's like the opposite, it's like the reverse Rodney King

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<v Speaker 4>where the government is going to say slow it down,

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<v Speaker 4>and you see that there are a good shooting shots

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<v Speaker 4>two and three were inappropriate, unreasonable, and also they're going

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<v Speaker 4>to slow it down.

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<v Speaker 5>In the Alex Peretty cases.

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<v Speaker 4>See look the gun was removed, it was walked away,

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<v Speaker 4>and then the shots began, even though it happened really quickly.

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<v Speaker 2>A long way to go and many many motions ahead

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<v Speaker 2>before any trial. Thanks so much, Dave. That's Dave Ehrenberg,

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<v Speaker 2>former Palm Beach County State Attorney. Coming up next on

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<v Speaker 2>the Bloomberg Laws Show. A landmark trial on social media

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<v Speaker 2>addiction starts in Los Angeles. I'm June Grosso. When you're

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<v Speaker 2>listening to Bloomberg.

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<v Speaker 6>Mister Zuckerberg, you and the companies before us, I know

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<v Speaker 6>you don't mean it to be so, but you have

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<v Speaker 6>blood on your hands. You have a product, you have

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<v Speaker 6>a product that's killing people.

0:11:59.360 --> 0:12:02.600
<v Speaker 2>That was book and Senator Lindsey Graham during a Senate

0:12:02.679 --> 0:12:07.040
<v Speaker 2>Judiciary Committee hearing two years ago, a rare instance where

0:12:07.080 --> 0:12:12.080
<v Speaker 2>Democrats and Republicans were united in their criticism of social

0:12:12.120 --> 0:12:16.960
<v Speaker 2>media CEOs like Mark Zuckerberg for not protecting kids online.

0:12:17.480 --> 0:12:21.679
<v Speaker 2>The Meta ceo pushed back on some studies that suggested

0:12:21.880 --> 0:12:25.160
<v Speaker 2>social media use is a detriment to the mental health

0:12:25.200 --> 0:12:26.080
<v Speaker 2>of teenagers.

0:12:26.679 --> 0:12:29.960
<v Speaker 7>Mental health is a complex issue, and the existing body

0:12:29.960 --> 0:12:33.000
<v Speaker 7>of scientific work has not shown a cause a link

0:12:33.040 --> 0:12:36.199
<v Speaker 7>between using social media and young people having worse mental

0:12:36.200 --> 0:12:36.920
<v Speaker 7>health outcomes.

0:12:37.280 --> 0:12:41.160
<v Speaker 2>Zuckerberg may make that same claim when he testifies to

0:12:41.280 --> 0:12:44.679
<v Speaker 2>a jury in a landmark trial over claims that the

0:12:44.679 --> 0:12:49.680
<v Speaker 2>top social media companies have deliberately gotten teenagers addicted through

0:12:49.720 --> 0:12:53.320
<v Speaker 2>their design choices. On trial are Meta, the owner of

0:12:53.360 --> 0:12:57.800
<v Speaker 2>Facebook and Instagram, and Google, the owner of YouTube. They

0:12:57.840 --> 0:13:02.040
<v Speaker 2>dispute the claims that their platforms deliberately harmed children and

0:13:02.120 --> 0:13:06.120
<v Speaker 2>cite the safeguards they've added over the years. Snap settled

0:13:06.120 --> 0:13:09.559
<v Speaker 2>the case last week and TikTok settled on the eve

0:13:09.600 --> 0:13:13.200
<v Speaker 2>of trial. Joining me is an expert in cybersecurity and

0:13:13.320 --> 0:13:17.880
<v Speaker 2>data privacy, Colin Walkee, a partner at Holestel. Colin, the

0:13:17.880 --> 0:13:20.640
<v Speaker 2>plaintiff in this case is a California woman who is

0:13:20.720 --> 0:13:23.880
<v Speaker 2>now twenty years old. Tell us about our allegations in

0:13:23.920 --> 0:13:24.719
<v Speaker 2>this lawsuit.

0:13:25.320 --> 0:13:27.520
<v Speaker 8>This is really the first one that's going to trial.

0:13:27.720 --> 0:13:31.240
<v Speaker 8>There are dozens, if not hundreds, of similar lawsuits out there,

0:13:31.320 --> 0:13:33.400
<v Speaker 8>and the basic allegation in this case, in all of

0:13:33.400 --> 0:13:37.160
<v Speaker 8>the cases, is that the algorithms that have been put

0:13:37.200 --> 0:13:39.840
<v Speaker 8>out there by the social media companies, as well as

0:13:39.920 --> 0:13:42.199
<v Speaker 8>all the bells and whistles they put on their social

0:13:42.240 --> 0:13:46.760
<v Speaker 8>media platforms, have made their products addictive. So this is

0:13:46.920 --> 0:13:50.960
<v Speaker 8>very much akin to the tobacco litigation in the nineteen nineties.

0:13:51.360 --> 0:13:53.280
<v Speaker 8>One is it addictive? And then two are there harms

0:13:53.320 --> 0:13:55.160
<v Speaker 8>that flow from it? The jury is ultimately going to

0:13:55.160 --> 0:13:55.839
<v Speaker 8>decide that in this.

0:13:55.880 --> 0:13:59.439
<v Speaker 2>Case, and the plaintiff's theory is a novel one that

0:13:59.520 --> 0:14:03.239
<v Speaker 2>compares social media sites to defective products.

0:14:03.920 --> 0:14:05.960
<v Speaker 8>Yes, and in fact, some of the claims even relate

0:14:06.040 --> 0:14:09.120
<v Speaker 8>back to like a nuisance type claim. But long story

0:14:09.160 --> 0:14:12.199
<v Speaker 8>short is that the way these algorithms operate is they

0:14:12.240 --> 0:14:16.199
<v Speaker 8>get you addicted through casino style techniques. So casinos know,

0:14:16.280 --> 0:14:18.320
<v Speaker 8>for example, that every time that you put a quarter

0:14:18.360 --> 0:14:20.240
<v Speaker 8>in you shouldn't get a reward because then you won't

0:14:20.240 --> 0:14:23.000
<v Speaker 8>come back. So it's the timing with which you see

0:14:23.000 --> 0:14:25.760
<v Speaker 8>and the content that you see it in and then

0:14:25.840 --> 0:14:28.400
<v Speaker 8>what are the consequences that flow from that, So for example,

0:14:28.840 --> 0:14:31.720
<v Speaker 8>mental health harms as a result of that. You could

0:14:31.720 --> 0:14:34.640
<v Speaker 8>think about children in school and the distractions that's some

0:14:34.720 --> 0:14:37.000
<v Speaker 8>of the allegations that have come out in these cases is,

0:14:37.520 --> 0:14:40.920
<v Speaker 8>you know, Instagram started losing teenagers and they were sitting

0:14:40.960 --> 0:14:43.200
<v Speaker 8>there going how do we get back more teenagers? Well,

0:14:43.280 --> 0:14:45.960
<v Speaker 8>let's figure out a way to get our platforms in schools, right,

0:14:46.360 --> 0:14:48.680
<v Speaker 8>And so the harms that flow from this are unique

0:14:48.720 --> 0:14:51.240
<v Speaker 8>to each individual, but you can see how they compound.

0:14:51.520 --> 0:14:53.560
<v Speaker 2>So they're going to try to show that the social

0:14:53.640 --> 0:14:58.840
<v Speaker 2>media companies deliberately made these addictive design choices.

0:14:58.920 --> 0:15:02.280
<v Speaker 8>Correct that that they have done this. And I think

0:15:02.320 --> 0:15:04.880
<v Speaker 8>that there's plenty of testimony out there that probably supports

0:15:04.920 --> 0:15:09.680
<v Speaker 8>the goal of making individuals remain on platforms as long

0:15:09.720 --> 0:15:12.440
<v Speaker 8>as possible, keeping their attention there so that they can

0:15:12.520 --> 0:15:15.480
<v Speaker 8>increase the number of viewers and thereby increase the number

0:15:15.560 --> 0:15:18.600
<v Speaker 8>of advertisements. So I don't think there's really anything new

0:15:18.640 --> 0:15:21.640
<v Speaker 8>about that. But the tech companies are coming in and saying, whoa, whoa.

0:15:22.160 --> 0:15:24.800
<v Speaker 8>We already know based off of the Spring Courts ruling

0:15:24.800 --> 0:15:30.040
<v Speaker 8>on section two thirty that the algorithms themselves are protected speech.

0:15:30.400 --> 0:15:33.240
<v Speaker 8>And so the unique claim in this particular case is, yes,

0:15:33.280 --> 0:15:36.520
<v Speaker 8>that may be speech, but the other bells and whistles

0:15:36.520 --> 0:15:38.640
<v Speaker 8>that you're putting onto this and what you're doing within

0:15:38.720 --> 0:15:41.680
<v Speaker 8>it is not speech, and rather it's conduct that it's

0:15:41.720 --> 0:15:43.880
<v Speaker 8>getting us addicted to your platform.

0:15:44.000 --> 0:15:47.520
<v Speaker 2>The tech companies are also arguing that they're not legally

0:15:47.600 --> 0:15:51.560
<v Speaker 2>responsible for the effect of the content made by users,

0:15:51.600 --> 0:15:53.640
<v Speaker 2>So explain what they're out is here what they're trying

0:15:53.640 --> 0:15:54.320
<v Speaker 2>to get.

0:15:54.120 --> 0:15:56.880
<v Speaker 8>To, right, So, in short, the fact that you're being

0:15:57.000 --> 0:16:00.160
<v Speaker 8>shown what you want to see is your own choice.

0:16:00.360 --> 0:16:03.600
<v Speaker 8>You could choose to see and view different things based

0:16:03.640 --> 0:16:06.240
<v Speaker 8>off of the likes, and you're viewing habits and all

0:16:06.240 --> 0:16:08.680
<v Speaker 8>of that. So they're essentially saying, all we're doing is

0:16:08.680 --> 0:16:11.360
<v Speaker 8>giving you what you want. We're not doing anything to

0:16:11.400 --> 0:16:14.120
<v Speaker 8>make it more enticing than it already is. And you know,

0:16:14.280 --> 0:16:17.240
<v Speaker 8>part of the argument too is how much is your

0:16:17.320 --> 0:16:22.840
<v Speaker 8>cell phone itself addictive versus the platforms themselves. Right, So

0:16:23.000 --> 0:16:25.640
<v Speaker 8>every time you get an iPhone update, for example, it

0:16:25.680 --> 0:16:28.960
<v Speaker 8>becomes a little bit brighter. Why the brighter the screen,

0:16:29.000 --> 0:16:31.320
<v Speaker 8>the more dopamine in the brain. The more dopamine the brain,

0:16:31.360 --> 0:16:33.000
<v Speaker 8>the more you want to look on your screen. That's

0:16:33.000 --> 0:16:35.080
<v Speaker 8>why it's hard for you to figure out without going

0:16:35.080 --> 0:16:37.040
<v Speaker 8>to Google how to set your screen to black and white.

0:16:37.080 --> 0:16:38.760
<v Speaker 8>They don't want you to know that, so part of

0:16:38.800 --> 0:16:41.240
<v Speaker 8>their argument here, too, is is how do you distinguish

0:16:41.280 --> 0:16:43.240
<v Speaker 8>which component of this is addictive.

0:16:43.480 --> 0:16:46.200
<v Speaker 2>The plaintiff in the case, a twenty year old woman

0:16:46.240 --> 0:16:50.800
<v Speaker 2>identified only by the initials KGM, claims that more than

0:16:50.840 --> 0:16:55.160
<v Speaker 2>a decade of social media use left her addicted and depressed.

0:16:55.520 --> 0:17:00.560
<v Speaker 2>The defendants are challenging that narrative, saying she experienced difficult

0:17:00.560 --> 0:17:05.480
<v Speaker 2>family relationships, abuse in bullying at school and that played

0:17:05.480 --> 0:17:08.440
<v Speaker 2>a role in her mental health struggles. I mean, how

0:17:08.480 --> 0:17:12.159
<v Speaker 2>difficult is causation going to be here for her to

0:17:12.280 --> 0:17:16.080
<v Speaker 2>prove that, you know, it was her addiction to the

0:17:16.119 --> 0:17:19.840
<v Speaker 2>platform rather than all the other things happening in her life.

0:17:20.160 --> 0:17:21.879
<v Speaker 8>Well, it's one of the sayings that we have in

0:17:21.880 --> 0:17:24.640
<v Speaker 8>personal injury cases, which is you find your planiffs as

0:17:24.680 --> 0:17:27.600
<v Speaker 8>they are. And so in this particular case, yes, they

0:17:27.600 --> 0:17:30.440
<v Speaker 8>have some pretty good arguments that the mental health harms

0:17:30.480 --> 0:17:33.359
<v Speaker 8>are a result of her history. But the question then

0:17:33.400 --> 0:17:38.840
<v Speaker 8>becomes were they exacerbated by virtue of the negligent conduct?

0:17:39.160 --> 0:17:42.000
<v Speaker 8>And if that's the case, then the approximate cause is

0:17:42.040 --> 0:17:45.159
<v Speaker 8>in fact the social media platform and not the historical

0:17:45.200 --> 0:17:47.879
<v Speaker 8>trauma that she experienced. It is going to be an

0:17:47.880 --> 0:17:50.560
<v Speaker 8>issue for the jury to determine about the mental health harms,

0:17:50.640 --> 0:17:53.440
<v Speaker 8>what was the ultimate cause, what are those damages? And

0:17:53.560 --> 0:17:55.359
<v Speaker 8>on top of that, are punitive damage is something that.

0:17:55.359 --> 0:17:56.040
<v Speaker 9>Could be afforded.

0:17:56.520 --> 0:17:59.920
<v Speaker 2>There is a debate within the mental health field about

0:18:00.160 --> 0:18:05.960
<v Speaker 2>the connection between social media and increasing teenage rates of depression, anxiety,

0:18:06.280 --> 0:18:10.000
<v Speaker 2>suicide ideation. Is that debate going to enter the courtroom

0:18:10.000 --> 0:18:12.960
<v Speaker 2>where we're going to see experts on both sides of

0:18:13.000 --> 0:18:13.600
<v Speaker 2>the issue.

0:18:14.119 --> 0:18:17.200
<v Speaker 8>Absolutely, you will, just like you saw with its Abacko litigation.

0:18:17.320 --> 0:18:19.760
<v Speaker 8>I mean, that's the reality is you're going to find

0:18:19.800 --> 0:18:22.280
<v Speaker 8>experts on both sides of this issue. But at the

0:18:22.359 --> 0:18:24.240
<v Speaker 8>end of the day, the reason why the jury trial

0:18:24.280 --> 0:18:27.159
<v Speaker 8>system is so good here in the United States is

0:18:27.200 --> 0:18:31.320
<v Speaker 8>because our jurors really are good at detecting bs, and

0:18:31.400 --> 0:18:34.280
<v Speaker 8>so they'll be able to figure out pretty quickly not

0:18:34.359 --> 0:18:37.080
<v Speaker 8>just from what the testimony is, but from their own

0:18:37.240 --> 0:18:41.080
<v Speaker 8>personal experiences. I don't think that anyone can ultimately hear

0:18:41.080 --> 0:18:45.280
<v Speaker 8>the testimony of these executives and former executives and decide

0:18:45.280 --> 0:18:48.520
<v Speaker 8>that they didn't at least try to make it more addictive.

0:18:48.720 --> 0:18:51.359
<v Speaker 8>Whether they accomplish that goal maybe a different story, but

0:18:51.400 --> 0:18:54.200
<v Speaker 8>it's pretty clear they at least tried explain.

0:18:53.840 --> 0:18:57.399
<v Speaker 2>What a Bellweather trial is and is this a Bellweather trial.

0:18:58.000 --> 0:19:01.040
<v Speaker 8>This is absolutely a Bellweather trial. It's very similar. Recently,

0:19:01.080 --> 0:19:03.600
<v Speaker 8>for example, you saw a Tesla I actually went to

0:19:03.640 --> 0:19:06.360
<v Speaker 8>trial and won on one of the cases where they're

0:19:06.359 --> 0:19:10.560
<v Speaker 8>automatic driving vehicle injured somebody, and so that is going

0:19:10.600 --> 0:19:13.439
<v Speaker 8>to embolden Tesla into the future. So if you imagine

0:19:13.440 --> 0:19:16.119
<v Speaker 8>a scenario in which the social media companies do win

0:19:16.200 --> 0:19:19.000
<v Speaker 8>this case, they're going to feel emboldened to continue to

0:19:19.000 --> 0:19:21.080
<v Speaker 8>pursue it. On the flip side of that coin, if

0:19:21.119 --> 0:19:22.960
<v Speaker 8>the plaintiffs win this case, then at the end of

0:19:22.960 --> 0:19:25.120
<v Speaker 8>the day, you're going to start seeing a lot more settlements.

0:19:25.640 --> 0:19:30.800
<v Speaker 2>And speaking of settlements, the fact that Snap and TikTok

0:19:31.040 --> 0:19:35.840
<v Speaker 2>settled TikTok on the eve of trial, both for undisclosed sums,

0:19:36.200 --> 0:19:38.560
<v Speaker 2>what does that tell you about how the social media

0:19:38.640 --> 0:19:42.679
<v Speaker 2>companies are evaluating the risk of going to trial.

0:19:43.200 --> 0:19:46.040
<v Speaker 8>I think what most people don't realize is that lawyer's

0:19:46.119 --> 0:19:48.439
<v Speaker 8>jobs are to manage risk. We are risk managers, that

0:19:48.560 --> 0:19:51.200
<v Speaker 8>is it. And so for the plaintiffs in this case,

0:19:51.680 --> 0:19:53.960
<v Speaker 8>if they settled, the reason why is because they know

0:19:54.000 --> 0:19:55.040
<v Speaker 8>that this is going to be taken all the way

0:19:55.040 --> 0:19:56.639
<v Speaker 8>to the Supreme Court, and that's going to take another

0:19:56.680 --> 0:19:59.480
<v Speaker 8>five years, whereas they can get some money today and

0:19:59.520 --> 0:20:01.840
<v Speaker 8>avoid that risk. Right, So there's an incentive for the

0:20:01.840 --> 0:20:04.680
<v Speaker 8>plaintiffs to settle from that regard, and there's an incentive

0:20:04.720 --> 0:20:07.040
<v Speaker 8>for the defendant to settle because they don't want this

0:20:07.119 --> 0:20:09.639
<v Speaker 8>information to get out there in the real world about

0:20:09.680 --> 0:20:12.280
<v Speaker 8>how much you know your privacy is being pilfered for profit.

0:20:12.359 --> 0:20:14.639
<v Speaker 8>They don't want their dirty laundry aired. And so this

0:20:14.760 --> 0:20:17.920
<v Speaker 8>is why settlements happen, is because both sides are incentivized

0:20:18.240 --> 0:20:21.159
<v Speaker 8>to not continue on with the case whether they're right

0:20:21.240 --> 0:20:21.560
<v Speaker 8>or wrong.

0:20:22.160 --> 0:20:25.960
<v Speaker 2>Zuckerberg is expected to be among the first witnesses called.

0:20:26.400 --> 0:20:30.679
<v Speaker 2>He has testified before Congress, But explain how different it

0:20:30.800 --> 0:20:34.720
<v Speaker 2>is to be testifying in a courtroom before a jury

0:20:35.000 --> 0:20:36.960
<v Speaker 2>where you're subject to cross examination.

0:20:37.840 --> 0:20:40.680
<v Speaker 8>Well, it's wildly different, because if you remember back when

0:20:40.680 --> 0:20:43.880
<v Speaker 8>Mark Zuckerberg came and testified in front of Congress, one

0:20:43.920 --> 0:20:47.000
<v Speaker 8>of the congressmen actually thought the reference to a cookie

0:20:47.119 --> 0:20:49.560
<v Speaker 8>was an edible item and not a pixel contained on

0:20:49.600 --> 0:20:52.920
<v Speaker 8>your computer screen. Okay, So the difference is that these

0:20:53.000 --> 0:20:57.640
<v Speaker 8>attorneys in the courtroom know the technology, they know the facts,

0:20:57.640 --> 0:21:00.000
<v Speaker 8>and they're going to be able to effectively cross exams

0:21:00.119 --> 0:21:02.720
<v Speaker 8>and someone about what a cookie is and how they're

0:21:02.800 --> 0:21:06.040
<v Speaker 8>tracking your data from one website to another, and then

0:21:06.119 --> 0:21:08.879
<v Speaker 8>it begs the question, why are you tracking my information

0:21:08.960 --> 0:21:11.720
<v Speaker 8>from my insurance carrier? Oh, well so we can show

0:21:11.720 --> 0:21:13.840
<v Speaker 8>you more ads? Okay, why are you showing more ads? Well,

0:21:13.840 --> 0:21:15.639
<v Speaker 8>so we can get you addicted. So that's how the

0:21:15.680 --> 0:21:17.320
<v Speaker 8>cross examination is going to work that you would have

0:21:17.320 --> 0:21:18.200
<v Speaker 8>never seen in Congress.

0:21:18.359 --> 0:21:21.639
<v Speaker 2>I think Zuckerberg as a tendency to sometimes appear a

0:21:21.640 --> 0:21:25.119
<v Speaker 2>little bit wooden when he talks. How much depends on

0:21:25.280 --> 0:21:27.520
<v Speaker 2>how the jurors view him.

0:21:27.920 --> 0:21:29.720
<v Speaker 8>Well, it goes back to the old saying that you

0:21:29.760 --> 0:21:32.399
<v Speaker 8>know a jury, if they like you, they like your cause.

0:21:32.840 --> 0:21:35.000
<v Speaker 8>And so that's a hurdle that the tech companies are

0:21:35.040 --> 0:21:37.280
<v Speaker 8>going to have to overcome at the start of this trial,

0:21:37.320 --> 0:21:39.840
<v Speaker 8>because they've had enough black eyes already that the jury's

0:21:39.840 --> 0:21:40.920
<v Speaker 8>not going to like them out the.

0:21:40.880 --> 0:21:43.760
<v Speaker 2>Gate and the plaintif here will have to take the stand.

0:21:44.240 --> 0:21:46.040
<v Speaker 8>Yes, the Planoff will have to take the stand. And

0:21:46.440 --> 0:21:48.840
<v Speaker 8>I have no doubt that her mental health history will

0:21:48.840 --> 0:21:50.720
<v Speaker 8>come up and the trauma that she has suffered, and

0:21:50.800 --> 0:21:54.360
<v Speaker 8>all of that is fodder for cross examination. As painful

0:21:54.400 --> 0:21:56.760
<v Speaker 8>as it may be for someone to go through that process,

0:21:57.119 --> 0:21:59.320
<v Speaker 8>it has to occur in order for the jury to

0:21:59.359 --> 0:22:02.200
<v Speaker 8>have a full under standing an appreciation of whether or

0:22:02.240 --> 0:22:05.120
<v Speaker 8>not the trauma in this case was related to addiction

0:22:05.240 --> 0:22:07.480
<v Speaker 8>from social media or prior experiences.

0:22:07.920 --> 0:22:11.040
<v Speaker 2>Jury selections started this week tell us the kind of

0:22:11.119 --> 0:22:14.239
<v Speaker 2>jurors that the plaintiff's lawyer will be looking for and

0:22:14.280 --> 0:22:16.800
<v Speaker 2>the kind of jurors that the defendant's lawyer will be

0:22:16.840 --> 0:22:17.440
<v Speaker 2>looking for.

0:22:17.960 --> 0:22:20.240
<v Speaker 8>So, if I'm the planiff's lawyer, I am looking for

0:22:20.400 --> 0:22:25.040
<v Speaker 8>individuals who are going to be used to using social

0:22:25.160 --> 0:22:29.120
<v Speaker 8>media and find it problematic for themselves or their family members. Right,

0:22:29.160 --> 0:22:31.120
<v Speaker 8>So we all have the uncle or the dad who

0:22:31.119 --> 0:22:33.800
<v Speaker 8>spends all day long on Twitter, and you're rolling your

0:22:33.800 --> 0:22:36.760
<v Speaker 8>eyes like sitting there, going do you not have anything

0:22:36.760 --> 0:22:39.880
<v Speaker 8>else to do? You want somebody who is frustrated about

0:22:39.920 --> 0:22:42.680
<v Speaker 8>the system on there. From the plantiff's perspective and from

0:22:42.680 --> 0:22:46.560
<v Speaker 8>the defendants perspective, you're looking for someone who is willing

0:22:46.600 --> 0:22:49.200
<v Speaker 8>to say, you know what, we live in a capitalistic

0:22:49.280 --> 0:22:53.760
<v Speaker 8>society in which individuals have freedom of choice, and these

0:22:53.800 --> 0:22:58.040
<v Speaker 8>people are choosing to download this app and spend time

0:22:58.119 --> 0:23:00.600
<v Speaker 8>on it. That is a choice that they are making,

0:23:01.040 --> 0:23:03.720
<v Speaker 8>and so you're gonna want someone who is very libertarian

0:23:04.160 --> 0:23:05.720
<v Speaker 8>in their perspectives on life.

0:23:06.320 --> 0:23:09.199
<v Speaker 2>Would you say it's more or less likely that the

0:23:09.200 --> 0:23:11.720
<v Speaker 2>trial is actually going to start after jury selection.

0:23:12.400 --> 0:23:14.840
<v Speaker 8>So, first of all, ninety three percent of all cases

0:23:14.840 --> 0:23:17.600
<v Speaker 8>settle before trial, so only some percent of cases actually

0:23:17.600 --> 0:23:20.160
<v Speaker 8>go to trial. And in that regard, many cases settle

0:23:20.200 --> 0:23:22.520
<v Speaker 8>midway through trial. You get pick your jury, and you

0:23:22.520 --> 0:23:24.199
<v Speaker 8>sit there and you go, I don't really like this,

0:23:24.280 --> 0:23:26.439
<v Speaker 8>let's go talk. So there is still a chance for

0:23:26.560 --> 0:23:29.040
<v Speaker 8>to settle. Although I was recently involved in a case

0:23:29.040 --> 0:23:30.480
<v Speaker 8>where the other side made it to clear this is

0:23:30.480 --> 0:23:33.080
<v Speaker 8>a test case for them. And so if that's the

0:23:33.080 --> 0:23:36.160
<v Speaker 8>position of either the social media company or the plaintiffs,

0:23:36.240 --> 0:23:38.280
<v Speaker 8>and I've got to imagine the plaintiffs have invested enough

0:23:38.280 --> 0:23:39.960
<v Speaker 8>money at this stage they don't have a choice but

0:23:40.000 --> 0:23:43.400
<v Speaker 8>to keep going. Then this is their bell Weather case

0:23:43.400 --> 0:23:44.919
<v Speaker 8>and they're going to figure out the answer a.

0:23:44.960 --> 0:23:48.360
<v Speaker 2>Bell Weather for the more than sixteen hundred other similar

0:23:48.440 --> 0:23:52.320
<v Speaker 2>cases against the tech companies. Thanks so much, Colin. That's

0:23:52.400 --> 0:23:55.480
<v Speaker 2>Colin Walkee of hall Estel coming up next on The

0:23:55.480 --> 0:23:59.639
<v Speaker 2>Bloomberg Law Show. Kid Rock testifies to Congress about ticket

0:23:59.680 --> 0:24:04.720
<v Speaker 2>scale helpers, price gouging, and the skyrocketing costs of concert tickets.

0:24:05.080 --> 0:24:08.879
<v Speaker 2>But the Justice Department and the FTC have already sued

0:24:08.960 --> 0:24:13.119
<v Speaker 2>Ticketmaster and Live Nation. So what's the solution? Remember you

0:24:13.160 --> 0:24:15.639
<v Speaker 2>can always get the latest legal news by listening to

0:24:15.680 --> 0:24:19.760
<v Speaker 2>our Bloomberg Law podcast wherever you get your favorite podcasts.

0:24:20.080 --> 0:24:22.840
<v Speaker 2>I'm June Grosso and you're listening to Bloomberg.

0:24:25.560 --> 0:24:29.199
<v Speaker 10>Secondary ticketing is driving up prices for the fans with

0:24:29.400 --> 0:24:31.840
<v Speaker 10>absolutely no benefit to the artist.

0:24:32.280 --> 0:24:36.000
<v Speaker 2>Not many fans or artists would dispute that testimony from

0:24:36.160 --> 0:24:40.920
<v Speaker 2>Kid Rock about the skyrocketing costs of concert tickets, whether

0:24:40.960 --> 0:24:44.720
<v Speaker 2>it's BTS, Beyonce or Bruno Mars. If you've tried to

0:24:44.720 --> 0:24:48.720
<v Speaker 2>buy tickets to the concerts of any major artists, you've

0:24:48.760 --> 0:24:54.320
<v Speaker 2>seen not only the astronomical prices, but probably also experience

0:24:54.480 --> 0:24:58.840
<v Speaker 2>the nightmare of trying to buy tickets online, waiting patiently

0:24:59.000 --> 0:25:02.199
<v Speaker 2>in a queue, and then watching the tickets vanish in

0:25:02.320 --> 0:25:06.200
<v Speaker 2>seconds before your eyes, sometimes even after they're in your

0:25:06.320 --> 0:25:10.280
<v Speaker 2>cart for purchase, and then seeing those tickets at three

0:25:10.400 --> 0:25:14.680
<v Speaker 2>or four times the price in the secondary markets. Kid Rock,

0:25:14.760 --> 0:25:18.479
<v Speaker 2>whose real name is Robert James Ritchie, didn't mince words

0:25:18.520 --> 0:25:22.439
<v Speaker 2>when describing the live concert and entertainment industry to the

0:25:22.480 --> 0:25:24.240
<v Speaker 2>Senate Commerce Subcommittee.

0:25:24.320 --> 0:25:27.560
<v Speaker 10>It's no secret none that this industry is full of greedy,

0:25:27.600 --> 0:25:31.320
<v Speaker 10>snakes and scoundrels. Too many suits lining their pockets off

0:25:31.359 --> 0:25:35.280
<v Speaker 10>talent they never had, and fans they mislead. The truth

0:25:35.359 --> 0:25:38.400
<v Speaker 10>is much of this could have been, or still could

0:25:38.480 --> 0:25:43.280
<v Speaker 10>be solved through technology, especially proof of humanity tools. It

0:25:43.320 --> 0:25:45.879
<v Speaker 10>hasn't happened yet because there's just too much money in

0:25:45.920 --> 0:25:47.280
<v Speaker 10>the secondary ticket market.

0:25:47.480 --> 0:25:50.480
<v Speaker 2>But the hearing seemed to raise as many questions as

0:25:50.480 --> 0:25:53.440
<v Speaker 2>it answered. Joining me is an entertainment lawyer in the

0:25:53.520 --> 0:25:58.440
<v Speaker 2>music industry. Ron Beanstock, a partner at Fox Rothschild. Ron

0:25:58.560 --> 0:26:02.480
<v Speaker 2>kid Rock, started out his testimony by reminding the committee

0:26:02.560 --> 0:26:07.360
<v Speaker 2>that Pearl Jam sat before Congress thirty years ago testifying

0:26:07.400 --> 0:26:10.399
<v Speaker 2>against Ticketmaster. I mean, in thirty years, are we in

0:26:10.440 --> 0:26:11.720
<v Speaker 2>the same spot.

0:26:11.960 --> 0:26:15.359
<v Speaker 11>Yes, and no, we are probably not exactly the same spot,

0:26:15.480 --> 0:26:20.200
<v Speaker 11>because there's appearances, there's litigation, there's investigation, But the truth

0:26:20.280 --> 0:26:23.800
<v Speaker 11>is overall, what has not changed and has probably only

0:26:23.960 --> 0:26:26.760
<v Speaker 11>sort of manifestly become more difficult, is that we're talking

0:26:26.800 --> 0:26:30.080
<v Speaker 11>about Live Nation and ticket Master. They're a monopoly. Ticketmasters

0:26:30.160 --> 0:26:34.480
<v Speaker 11>sells what five hundred million tickets in thirty countries, and

0:26:34.520 --> 0:26:36.960
<v Speaker 11>they have eighty percent of the US market. That's where

0:26:37.000 --> 0:26:39.600
<v Speaker 11>your problem lies, is right, you have no competition on this.

0:26:39.960 --> 0:26:42.520
<v Speaker 11>I think where this problem starts is that there's a

0:26:42.640 --> 0:26:46.000
<v Speaker 11>misconception about ticket pricing and bands and artists and how

0:26:46.000 --> 0:26:49.560
<v Speaker 11>this all works. So my clients, yes, they'll set the

0:26:49.560 --> 0:26:51.560
<v Speaker 11>ticket price, but here's how it works. Let's say you've

0:26:51.600 --> 0:26:53.760
<v Speaker 11>set a ticket price, and you want to be reasonable

0:26:53.840 --> 0:26:56.840
<v Speaker 11>and have fans have accessibility to the show, and so

0:26:56.880 --> 0:26:59.239
<v Speaker 11>your ticket price, let's say, is one hundred dollars, and

0:26:59.280 --> 0:27:02.280
<v Speaker 11>we also have to talk about the incredible increase in

0:27:02.400 --> 0:27:05.199
<v Speaker 11>production costs to get an artist on the road. But

0:27:05.400 --> 0:27:07.760
<v Speaker 11>let's say it's one hundred dollars ticket it goes through

0:27:07.840 --> 0:27:10.160
<v Speaker 11>sale through ticket Master. Now it's one hundred and seventy

0:27:10.200 --> 0:27:12.720
<v Speaker 11>with all the tack on items. As many manager as

0:27:12.720 --> 0:27:14.800
<v Speaker 11>I spoke to, I called a few people to get

0:27:14.920 --> 0:27:17.400
<v Speaker 11>some background. Man, there are a lot of epithets being

0:27:17.480 --> 0:27:21.760
<v Speaker 11>tossed around by management. But effectively, when you want to

0:27:21.800 --> 0:27:24.640
<v Speaker 11>offer the artist price at one hundred out to the

0:27:24.680 --> 0:27:27.520
<v Speaker 11>marketplace your fan group, and it comes one hundred and

0:27:27.520 --> 0:27:30.320
<v Speaker 11>seventy when they order with all the tack on stuff,

0:27:30.480 --> 0:27:33.280
<v Speaker 11>your ticket price is up by forty percent. I think

0:27:33.320 --> 0:27:36.520
<v Speaker 11>the problem there is that every artist wants to make

0:27:36.560 --> 0:27:39.399
<v Speaker 11>it accessible to the fan, and they get blamed for

0:27:39.480 --> 0:27:42.960
<v Speaker 11>the extra costs that are tacked on by ticket Master,

0:27:43.560 --> 0:27:46.760
<v Speaker 11>and it's not the artist that's doing that. The artist

0:27:46.880 --> 0:27:50.359
<v Speaker 11>wants their fans to be there. There's a secondary market

0:27:50.400 --> 0:27:53.520
<v Speaker 11>problem where tickets that go on sale and the fans

0:27:53.560 --> 0:27:55.639
<v Speaker 11>are able to gobble up the good tickets, then the

0:27:55.680 --> 0:27:57.600
<v Speaker 11>back of the hall tickets come up, and you know

0:27:57.640 --> 0:27:59.800
<v Speaker 11>what I mean, all the way the back tickets come

0:27:59.880 --> 0:28:02.160
<v Speaker 11>up and people will say, I can still get into

0:28:02.200 --> 0:28:04.600
<v Speaker 11>the show, and those tickets are still at one hundred

0:28:04.640 --> 0:28:07.399
<v Speaker 11>and seventy total or more when they really shouldn't be.

0:28:07.440 --> 0:28:10.640
<v Speaker 11>They're not the primary seats. So the secondary issue comes up.

0:28:10.840 --> 0:28:15.240
<v Speaker 11>There's just so many factors in offering your fans a

0:28:15.280 --> 0:28:19.639
<v Speaker 11>fair price for a ticket, and technically you're supposed to

0:28:19.720 --> 0:28:23.320
<v Speaker 11>have under the face value exchange. Now you're supposed to

0:28:23.400 --> 0:28:26.000
<v Speaker 11>know exactly what you're paying for. But again I don't

0:28:26.000 --> 0:28:29.080
<v Speaker 11>think that's worked out because the monopolistic.

0:28:28.440 --> 0:28:31.800
<v Speaker 2>Situation you talk about, you know, the markup the artists

0:28:31.840 --> 0:28:33.520
<v Speaker 2>won one hundred dollars a ticket and then it goes

0:28:33.560 --> 0:28:36.200
<v Speaker 2>to one hundred and seventy. Who's getting those seventy dollars?

0:28:36.800 --> 0:28:39.360
<v Speaker 11>Those markups are going to ticket Master and other similar

0:28:39.400 --> 0:28:41.640
<v Speaker 11>companies that work with them, Right, you're going to get

0:28:41.640 --> 0:28:44.800
<v Speaker 11>ticket Master and Live Nation are going to because they're

0:28:44.920 --> 0:28:47.680
<v Speaker 11>the same company. They're going to be taking those additional

0:28:47.720 --> 0:28:50.719
<v Speaker 11>cost home with them. That's their profit. While the band

0:28:50.840 --> 0:28:53.760
<v Speaker 11>has more of a difficulty here because they have I

0:28:53.760 --> 0:28:55.560
<v Speaker 11>mean band, it's irrespective of genre.

0:28:55.560 --> 0:28:57.240
<v Speaker 9>I'll just refer to as artists and bands.

0:28:57.600 --> 0:29:01.240
<v Speaker 11>They have the difficulty in trying to get a ticket

0:29:01.280 --> 0:29:04.000
<v Speaker 11>price that allows a fan to get a good seat

0:29:04.000 --> 0:29:06.840
<v Speaker 11>to see them at the same time that they're balancing

0:29:07.040 --> 0:29:10.120
<v Speaker 11>all the additional costs it takes to travel to get

0:29:10.160 --> 0:29:14.360
<v Speaker 11>there to present that show. And that conundrum is faced

0:29:14.400 --> 0:29:18.080
<v Speaker 11>every day by artists. I want to add one little thing.

0:29:18.440 --> 0:29:21.920
<v Speaker 11>I think there's something that everybody's overlooking that increases the costs,

0:29:22.240 --> 0:29:26.360
<v Speaker 11>and that is most artists make up the differential even

0:29:26.400 --> 0:29:28.600
<v Speaker 11>if they ask for a lower ticket price, they make

0:29:28.680 --> 0:29:32.800
<v Speaker 11>up the differential with merchandise sales. Well, that's problematic because

0:29:32.840 --> 0:29:36.840
<v Speaker 11>merchandise sales are fixed. You're paying somebody to go sell.

0:29:36.880 --> 0:29:40.720
<v Speaker 11>You may have a merchandise deal and there'll be a booth, window, table,

0:29:40.760 --> 0:29:43.680
<v Speaker 11>whatever it is, and you're selling your hats, your T shirts,

0:29:43.680 --> 0:29:47.040
<v Speaker 11>your hoodies, whatever it may be. And the fan walks

0:29:47.120 --> 0:29:50.920
<v Speaker 11>up and doesn't understand that when they buy that sweatshirt,

0:29:51.520 --> 0:29:55.200
<v Speaker 11>the venue that the artist is playing in is taking

0:29:55.280 --> 0:29:58.000
<v Speaker 11>twenty five to thirty five percent of that for doing

0:29:58.040 --> 0:29:58.800
<v Speaker 11>literally nothing.

0:29:59.160 --> 0:30:02.120
<v Speaker 2>And those prices have gone up and up. I mean

0:30:02.120 --> 0:30:04.240
<v Speaker 2>you look at a T shirt sometimes it's like forty

0:30:04.240 --> 0:30:06.640
<v Speaker 2>to fifty bucks. It's crazy, the prices.

0:30:06.880 --> 0:30:11.000
<v Speaker 11>Because the hall, the venue what we used to refer

0:30:11.080 --> 0:30:13.320
<v Speaker 11>to as a hall fee, that name is morphed a

0:30:13.320 --> 0:30:15.600
<v Speaker 11>little bit to make it more palatable, but it's still

0:30:15.760 --> 0:30:19.000
<v Speaker 11>money for nothing. To quote Mark Knopflin, it is twenty

0:30:19.000 --> 0:30:22.160
<v Speaker 11>five to thirty five percent additional tack on to the

0:30:22.200 --> 0:30:25.959
<v Speaker 11>merch costs. And you buying that T shirt see that

0:30:26.160 --> 0:30:29.640
<v Speaker 11>and say the band merch is so expensive, But the

0:30:29.720 --> 0:30:32.640
<v Speaker 11>band has to raise the price to make up for

0:30:32.720 --> 0:30:36.000
<v Speaker 11>this hall fee. And that would have taken care of

0:30:36.400 --> 0:30:40.240
<v Speaker 11>any deficit more minor deficit of playing the show for

0:30:40.280 --> 0:30:42.520
<v Speaker 11>a lower ticket price just to have the fans come.

0:30:42.720 --> 0:30:45.120
<v Speaker 11>They make it back on merch but if you're paying

0:30:45.160 --> 0:30:47.800
<v Speaker 11>twenty five to thirty five percent, I've seen forty percent,

0:30:48.240 --> 0:30:50.840
<v Speaker 11>then you ratchet up your merch fees, which is nothing

0:30:50.880 --> 0:30:52.840
<v Speaker 11>to do a ticket master. But you can see how

0:30:52.840 --> 0:30:55.720
<v Speaker 11>it starts with ticket Master, how it starts with the

0:30:55.760 --> 0:30:58.480
<v Speaker 11>expensive ticket prices and you want the fans to come

0:30:58.520 --> 0:31:01.720
<v Speaker 11>out and see you, but now you have this additional cost.

0:31:01.760 --> 0:31:03.200
<v Speaker 11>And I think this is kind of like one of

0:31:03.200 --> 0:31:05.680
<v Speaker 11>these little I don't want to say dirty little secrets,

0:31:05.680 --> 0:31:08.680
<v Speaker 11>but just one of these unknown issues that people don't

0:31:08.720 --> 0:31:12.000
<v Speaker 11>talk about. And you know, I spoke to several managers,

0:31:12.000 --> 0:31:15.600
<v Speaker 11>particularly one client's manager I've worked with for thirty five years,

0:31:15.640 --> 0:31:17.680
<v Speaker 11>and I valued his input, and he had said, you know,

0:31:18.120 --> 0:31:21.240
<v Speaker 11>what I'd really love to have would be the power

0:31:21.320 --> 0:31:24.520
<v Speaker 11>to organize all of the acts together, almost in a

0:31:24.640 --> 0:31:27.680
<v Speaker 11>union fashion, to say to all the venues, we won't

0:31:27.720 --> 0:31:31.000
<v Speaker 11>sell merch here just because you're going to take that cut.

0:31:31.120 --> 0:31:32.000
<v Speaker 9>Now, that's a.

0:31:31.920 --> 0:31:36.040
<v Speaker 11>Bit of you know, spitefulness to the venues, and we

0:31:36.120 --> 0:31:39.080
<v Speaker 11>lose the money as the artist. But you can understand

0:31:39.120 --> 0:31:41.520
<v Speaker 11>the sentiment there, and that is I don't want to

0:31:41.680 --> 0:31:43.840
<v Speaker 11>pay you for doing nothing. I'd rather not bring my

0:31:43.920 --> 0:31:46.960
<v Speaker 11>merch into the room rather just sell it online or

0:31:46.960 --> 0:31:48.000
<v Speaker 11>another methodology.

0:31:48.960 --> 0:31:52.120
<v Speaker 2>The Federal Trade Commission and a bypart is in group

0:31:52.160 --> 0:31:57.080
<v Speaker 2>of state attorneys general did sue Ticketmaster and its parent company,

0:31:57.160 --> 0:32:01.120
<v Speaker 2>Live Nation in September, saying they're I'm for seeing consumers

0:32:01.160 --> 0:32:04.160
<v Speaker 2>to pay more to see live events through a variety

0:32:04.320 --> 0:32:07.800
<v Speaker 2>of illegal tactics. But this month the company's asked a

0:32:07.840 --> 0:32:11.719
<v Speaker 2>federal judge to throw out the case. What's their argument?

0:32:12.440 --> 0:32:15.240
<v Speaker 11>So the defense here is that you have the wrong parties.

0:32:15.240 --> 0:32:18.560
<v Speaker 11>We are not responsible for the resellers. They're blaming the

0:32:18.600 --> 0:32:21.160
<v Speaker 11>bot buyers and the resellers, even though we've had the

0:32:21.200 --> 0:32:25.040
<v Speaker 11>Bock Buyers Act in twenty sixteen. They're saying, don't look

0:32:25.080 --> 0:32:28.760
<v Speaker 11>at us. You know, you're blaming us as being monopolistic here,

0:32:29.320 --> 0:32:32.360
<v Speaker 11>But it's really the bot buyers and resellers who are

0:32:32.360 --> 0:32:34.200
<v Speaker 11>causing the problem, not us.

0:32:34.480 --> 0:32:34.719
<v Speaker 9>You know.

0:32:34.840 --> 0:32:36.760
<v Speaker 11>I want to make one sort of comment here. It's

0:32:36.800 --> 0:32:40.080
<v Speaker 11>a little performative for Kid Rock because he has a

0:32:40.080 --> 0:32:42.880
<v Speaker 11>close relationship with this administration, and I want to take

0:32:43.080 --> 0:32:45.240
<v Speaker 11>slight umbrage to one thing he said when he said,

0:32:45.360 --> 0:32:47.560
<v Speaker 11>you know, I'm a maverick. I don't have to answer

0:32:47.560 --> 0:32:49.760
<v Speaker 11>to anybody. You know, I don't have to answer with

0:32:49.840 --> 0:32:52.360
<v Speaker 11>to a label or anything like this. Let's draw back

0:32:52.400 --> 0:32:54.960
<v Speaker 11>and have an overview about that. Labels have nothing to

0:32:55.000 --> 0:32:57.240
<v Speaker 11>do with this. That's not just red herring, that's just

0:32:57.320 --> 0:33:00.000
<v Speaker 11>not applicable. Labels have nothing to do with ticket prices.

0:33:00.160 --> 0:33:03.240
<v Speaker 11>Nobody at the labels is demanding that the artists set

0:33:03.280 --> 0:33:05.560
<v Speaker 11>ticket prices. They just want them to tour because they

0:33:05.600 --> 0:33:07.600
<v Speaker 11>want to sell product. They want to sell some vinyl

0:33:07.640 --> 0:33:10.200
<v Speaker 11>and hopefully get some downloads out of this. Of course

0:33:10.360 --> 0:33:13.719
<v Speaker 11>why wouldn't they, But it really is Ticketmaster that is

0:33:13.760 --> 0:33:17.280
<v Speaker 11>the problem in terms of monopolistic behavior, nothing to do

0:33:17.320 --> 0:33:19.040
<v Speaker 11>with labels. And I want to throw one more thing,

0:33:19.080 --> 0:33:22.040
<v Speaker 11>and while I'm on my soapbox, is that very few

0:33:22.120 --> 0:33:25.680
<v Speaker 11>artists are really with major labels. Now, so again this

0:33:26.040 --> 0:33:27.520
<v Speaker 11>you know, I'm a rock, I'm an island.

0:33:27.640 --> 0:33:28.040
<v Speaker 9>Look at me.

0:33:28.160 --> 0:33:30.400
<v Speaker 11>I don't answer to anybody, you know. I know that

0:33:30.480 --> 0:33:34.360
<v Speaker 11>fits his self proclaimed position in the industry. But everybody's

0:33:34.400 --> 0:33:37.040
<v Speaker 11>in the same position. Very few people are working with

0:33:37.160 --> 0:33:39.720
<v Speaker 11>major labels, which again nothing to do with ticket prices.

0:33:40.000 --> 0:33:42.680
<v Speaker 11>So almost everybody is in the same world, putting out

0:33:42.680 --> 0:33:46.160
<v Speaker 11>their own material through their own labels and going back

0:33:46.160 --> 0:33:48.880
<v Speaker 11>to their fans and trying to just you know, twice

0:33:48.920 --> 0:33:51.440
<v Speaker 11>a year, get on the road and stay relevant to

0:33:51.480 --> 0:33:54.920
<v Speaker 11>their fans and bring new materials sometimes new material to them.

0:33:55.080 --> 0:33:57.440
<v Speaker 9>But no, he's not the only one speaking up.

0:33:57.600 --> 0:34:00.000
<v Speaker 11>He gets an automatic vibe because he has that relationship

0:34:00.120 --> 0:34:01.560
<v Speaker 11>ship with this president administration.

0:34:02.000 --> 0:34:06.080
<v Speaker 2>If Ticketmaster really is the problem. The Justice Department filed

0:34:06.120 --> 0:34:10.720
<v Speaker 2>a sweeping antitrust lawsuit against ticket Master and Live Nation

0:34:11.440 --> 0:34:14.239
<v Speaker 2>in May of twenty twenty four. It accuses them of

0:34:14.320 --> 0:34:18.239
<v Speaker 2>running an illegal monopoly over live events and ask the

0:34:18.239 --> 0:34:21.360
<v Speaker 2>court to break them up. Trial is schedule for March.

0:34:21.640 --> 0:34:26.240
<v Speaker 2>So if the Justice Department wins, and if the judge

0:34:26.280 --> 0:34:29.520
<v Speaker 2>agrees to a breakup, will that solve some of the

0:34:29.600 --> 0:34:32.440
<v Speaker 2>problems We've been discussing the AT.

0:34:32.280 --> 0:34:34.920
<v Speaker 9>And T breakup. How did that work? Right?

0:34:35.680 --> 0:34:36.919
<v Speaker 2>Oh, don't go back in time.

0:34:37.320 --> 0:34:38.279
<v Speaker 9>I think the AT and.

0:34:38.320 --> 0:34:41.360
<v Speaker 11>T anti monopolistic filings I think are analogous to this,

0:34:41.520 --> 0:34:45.799
<v Speaker 11>because you know, everybody eventually got some choice, and you know,

0:34:45.840 --> 0:34:48.600
<v Speaker 11>the competition in the marketplace for tickets and ticket sales

0:34:48.640 --> 0:34:51.960
<v Speaker 11>is important, and if one company controls that, then they

0:34:51.960 --> 0:34:54.920
<v Speaker 11>get to control the narrative on cost. And you know,

0:34:55.080 --> 0:34:57.799
<v Speaker 11>don't look at us, it's someone else's fault. Right, they

0:34:57.840 --> 0:35:00.480
<v Speaker 11>blame everybody else. But what I don't don't want to

0:35:00.480 --> 0:35:03.200
<v Speaker 11>have happened here, And I think it's really important to

0:35:03.239 --> 0:35:05.080
<v Speaker 11>emphasize it's not the artist.

0:35:05.719 --> 0:35:06.640
<v Speaker 9>I hear it all the time.

0:35:06.680 --> 0:35:09.440
<v Speaker 11>I don't want the artists taking the wrap here for

0:35:09.960 --> 0:35:12.520
<v Speaker 11>and that's upon I suppose, but taking the wrap for Oh,

0:35:12.640 --> 0:35:15.680
<v Speaker 11>these guys are being greedy. They're not selling records anymore,

0:35:15.920 --> 0:35:19.160
<v Speaker 11>so they're raising their ticket prices. That is not entirely

0:35:19.280 --> 0:35:22.440
<v Speaker 11>the case. The ticket prices, which I demonstrated when we

0:35:22.480 --> 0:35:25.280
<v Speaker 11>first started speaking, from one hundred to one hundred and seventy.

0:35:25.680 --> 0:35:28.160
<v Speaker 11>The band's only getting a portion of the one hundred.

0:35:28.800 --> 0:35:31.479
<v Speaker 11>They're not getting that seventy dollars overage. That's all going

0:35:31.520 --> 0:35:34.640
<v Speaker 11>to the ticket sellers and to some extent the venues.

0:35:34.920 --> 0:35:37.520
<v Speaker 11>And when we pile on now with the merch fees

0:35:37.560 --> 0:35:40.759
<v Speaker 11>at the hall, you can see the artist is it's

0:35:41.000 --> 0:35:43.919
<v Speaker 11>very difficult for them to get their ability to stay

0:35:43.960 --> 0:35:46.800
<v Speaker 11>out on the road and pay. You know, sometimes thirty

0:35:46.800 --> 0:35:48.640
<v Speaker 11>people are going to go out with a particular artists

0:35:48.719 --> 0:35:51.640
<v Speaker 11>or more right, we've got all kinds of texts and

0:35:51.920 --> 0:35:55.200
<v Speaker 11>crew and drivers, and you know, it's difficult to keep

0:35:55.239 --> 0:35:58.879
<v Speaker 11>this out there and everybody that I work with, it's

0:35:58.880 --> 0:36:01.400
<v Speaker 11>a bit of a struggle. Want to play for their fans.

0:36:01.440 --> 0:36:04.600
<v Speaker 11>That's the lifeblood of the industry. But if we have

0:36:04.920 --> 0:36:10.120
<v Speaker 11>constant ticket prices and constant raising of costs to get there,

0:36:10.560 --> 0:36:11.080
<v Speaker 11>people are going.

0:36:11.040 --> 0:36:11.600
<v Speaker 9>To stay home.

0:36:12.120 --> 0:36:16.280
<v Speaker 2>What about a law that limits the amount of overcharges

0:36:16.280 --> 0:36:17.760
<v Speaker 2>that you could put on a ticket.

0:36:18.000 --> 0:36:20.120
<v Speaker 11>We have that with credit cards, and I think we've

0:36:20.120 --> 0:36:23.120
<v Speaker 11>attempted that with ticket prices. I don't think it's been successful,

0:36:23.680 --> 0:36:27.080
<v Speaker 11>and I think that it's possible. And this isn't this administration.

0:36:27.160 --> 0:36:31.480
<v Speaker 11>This has been going on, you know since twenty fifteen,

0:36:31.880 --> 0:36:34.920
<v Speaker 11>twenty sixteen, We've got a solid ten years of people

0:36:35.000 --> 0:36:38.320
<v Speaker 11>trying to effectuate change here. It's going to take I think,

0:36:38.400 --> 0:36:41.880
<v Speaker 11>a true meaning of the minds between the ticket sellers,

0:36:42.000 --> 0:36:45.719
<v Speaker 11>ticket companies you know, ticket Master or Live Nation to

0:36:46.440 --> 0:36:48.920
<v Speaker 11>come to the table to say Remember, they're also going

0:36:48.960 --> 0:36:50.600
<v Speaker 11>to say, well, we have we have a right to

0:36:50.680 --> 0:36:53.160
<v Speaker 11>make a profit doing what we're doing. The problem is

0:36:53.560 --> 0:36:57.479
<v Speaker 11>it's like overage on credit card fees. When's the limit right?

0:36:57.920 --> 0:37:02.279
<v Speaker 11>How much is enough? Because eventually it'll strangle the live

0:37:02.480 --> 0:37:06.200
<v Speaker 11>entertainment business and pay per view never worked out. We

0:37:06.239 --> 0:37:08.680
<v Speaker 11>all know that so people still want to see bands

0:37:08.680 --> 0:37:12.400
<v Speaker 11>live and we have to do everything in the industry.

0:37:12.400 --> 0:37:14.520
<v Speaker 11>Everybody has to do everything they can to foster that

0:37:14.880 --> 0:37:17.279
<v Speaker 11>on a regular basis, and I think legislation is going

0:37:17.320 --> 0:37:18.759
<v Speaker 11>to have to be there, and maybe it's going to

0:37:18.800 --> 0:37:22.680
<v Speaker 11>have to be a breakup or culling down of the

0:37:22.719 --> 0:37:25.560
<v Speaker 11>actual cost factors. Maybe there is a cap that has

0:37:25.600 --> 0:37:26.319
<v Speaker 11>to come into being.

0:37:26.840 --> 0:37:30.799
<v Speaker 2>Of the things that Kid Rock suggested some of his solutions,

0:37:31.280 --> 0:37:34.359
<v Speaker 2>allowing artists to control who sells their tickets and how,

0:37:34.520 --> 0:37:39.120
<v Speaker 2>recapping resale ticket prices, enforcing the Bots Act to stop

0:37:39.200 --> 0:37:42.200
<v Speaker 2>brokers and bad actors. Do you see any of them

0:37:42.239 --> 0:37:43.720
<v Speaker 2>as being a real solution.

0:37:44.719 --> 0:37:47.520
<v Speaker 11>Well, no one's really enforced that Bots Act from twenty sixteen.

0:37:47.560 --> 0:37:50.520
<v Speaker 11>You've got ten years now, so he's not wrong. But

0:37:51.280 --> 0:37:54.400
<v Speaker 11>someone has to decide what their priorities are, and if

0:37:54.440 --> 0:37:58.520
<v Speaker 11>there's a prioritization to this, it may occur. But this

0:37:58.560 --> 0:38:01.000
<v Speaker 11>particular Department of Justice is that other priorities.

0:38:01.040 --> 0:38:02.239
<v Speaker 9>So you know this.

0:38:02.400 --> 0:38:04.040
<v Speaker 11>I think it's a lot of lip service to say

0:38:04.040 --> 0:38:06.400
<v Speaker 11>we support that, but I don't see the actions. The

0:38:06.440 --> 0:38:09.080
<v Speaker 11>actions were started long before this because they work their

0:38:09.080 --> 0:38:11.480
<v Speaker 11>way through the courts. If this administration truly wants to

0:38:11.520 --> 0:38:14.560
<v Speaker 11>see this take place. Then they can do that by

0:38:14.840 --> 0:38:17.040
<v Speaker 11>by having a bit of a summit, if you will,

0:38:17.239 --> 0:38:19.200
<v Speaker 11>and bringing people to the table to say we need

0:38:19.239 --> 0:38:20.319
<v Speaker 11>to do this, we need to cap this.

0:38:20.800 --> 0:38:21.759
<v Speaker 9>It's preferable for.

0:38:21.760 --> 0:38:26.799
<v Speaker 11>Business not to force this right, not to force the

0:38:26.840 --> 0:38:30.359
<v Speaker 11>anti monopolistic actions. But we're going to have to get

0:38:30.360 --> 0:38:32.439
<v Speaker 11>some cooperation. And by the way, I want to add

0:38:32.480 --> 0:38:34.520
<v Speaker 11>one thing. I don't know if the artist picking who

0:38:34.640 --> 0:38:38.120
<v Speaker 11>sells their tickets, because then we make it, get that

0:38:38.160 --> 0:38:41.120
<v Speaker 11>same behavior by the next group of people. You know,

0:38:41.560 --> 0:38:43.680
<v Speaker 11>I don't want to be pessimistic, but if the next

0:38:43.719 --> 0:38:46.879
<v Speaker 11>group says I'll handle all this for you people, same

0:38:46.880 --> 0:38:51.359
<v Speaker 11>thing occurs again. So there has to be some independence here,

0:38:51.800 --> 0:38:54.680
<v Speaker 11>non reliance on the same group of people. We don't

0:38:54.680 --> 0:38:56.960
<v Speaker 11>want to have the same thing. You know, I think

0:38:57.000 --> 0:39:00.960
<v Speaker 11>he quoted, you know, the who he did and his presentation.

0:39:01.280 --> 0:39:03.439
<v Speaker 11>Meet the new boss, same as the old boss. Meet

0:39:03.440 --> 0:39:05.480
<v Speaker 11>the new ticket seller, same as the old ticket seller.

0:39:05.600 --> 0:39:07.920
<v Speaker 11>And we really want to have change here, and that

0:39:08.040 --> 0:39:12.120
<v Speaker 11>change requires fortitude by either this administration or the DOJ

0:39:12.640 --> 0:39:16.320
<v Speaker 11>to dismantle an incredibly powerful monopoly.

0:39:16.760 --> 0:39:20.759
<v Speaker 9>You know, eighty percent, that's that's a monopoly.

0:39:21.120 --> 0:39:24.640
<v Speaker 2>I do think a lot depends on the antitrust trial

0:39:24.800 --> 0:39:27.600
<v Speaker 2>coming up in March, and we'll see what happens with

0:39:27.680 --> 0:39:30.839
<v Speaker 2>the FTC suit as well. Thanks for joining me, Ron.

0:39:31.160 --> 0:39:35.200
<v Speaker 2>That's Ron Beanstock, a partner at Fox Rothschild. And that's

0:39:35.239 --> 0:39:37.840
<v Speaker 2>it for this edition of The Bloomberg Law Show. Remember

0:39:37.880 --> 0:39:39.960
<v Speaker 2>you can always get the latest legal news on our

0:39:40.000 --> 0:39:44.160
<v Speaker 2>Bloomberg Law Podcast. You can find them on Apple Podcasts, Spotify,

0:39:44.360 --> 0:39:49.400
<v Speaker 2>and at www dot Bloomberg dot com slash podcast Slash Law,

0:39:49.800 --> 0:39:52.360
<v Speaker 2>and remember to tune into The Bloomberg Law Show every

0:39:52.440 --> 0:39:56.320
<v Speaker 2>weeknight at ten pm Wall Street Time. I'm June Grosso

0:39:56.480 --> 0:39:58.040
<v Speaker 2>and you're listening to Bloomberg