WEBVTT - Facebook Data Dump Likely to Bring Lawsuits

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<v Speaker 1>This is Bloomberg Law with June Brussel from Bloomberg Radio.

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<v Speaker 1>Facebook could be looking at scrutiny from federal and state regulators,

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<v Speaker 1>as well as lawsuits from consumers, after data on more

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<v Speaker 1>than half a billion users became widely available online. Information

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<v Speaker 1>said to be exposed includes phone numbers, Facebook I d s,

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<v Speaker 1>full names, locations, birth dates, bios, and in some cases

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<v Speaker 1>email addresses. Facebook says that the data which re emerged

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<v Speaker 1>online over the weekend is from an earlier flaw revealed

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<v Speaker 1>in which Facebook fixed. My guest is Andream, a twition professor,

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<v Speaker 1>an Associate Dean of Innovation and Technology at Penn State Law.

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<v Speaker 1>So was this a dump a redump? What exactly was it?

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<v Speaker 1>So that's an excellent question. And it's still early enough

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<v Speaker 1>in the investigations around the forensics that will explain to

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<v Speaker 1>us the events leading up to this most recent identification

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<v Speaker 1>of large numbers of user personal identifiable information being available

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<v Speaker 1>in hat performs. The forensics are really what we need

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<v Speaker 1>to acquire here because the extent to which this is

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<v Speaker 1>part of a prior problem, the extent to which this

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<v Speaker 1>is a new problem, whether things have in fact been

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<v Speaker 1>corrected at this point, but also to what extent users

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<v Speaker 1>were notified in accordance with data brenotification obligations. Those are

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<v Speaker 1>all questions that are going to the contingent um the

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<v Speaker 1>specifics of those forensics. Additionally, because we have a complicated

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<v Speaker 1>regulatory relationship between the FTC and Facebook, the date of

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<v Speaker 1>knowledge by Facebook, but also what exactly they disclosed to

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<v Speaker 1>the STC in ten at the point of the second

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<v Speaker 1>round of consent decrees will be operative in whether potentially

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<v Speaker 1>the data control law will give rise to basis for

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<v Speaker 1>a new FTC enforcement action under the twelve consent decree.

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<v Speaker 1>What will the FTC be investigating and I assume they're

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<v Speaker 1>going to investigate yes. So in twelve, the STC and

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<v Speaker 1>Facebook agreed to a set of terms that included ongoing

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<v Speaker 1>self supervision obligations and assessments going forward due to some

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<v Speaker 1>of facebook prior practices around privacy and data security. So

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<v Speaker 1>the extent to which those promises that were voluntarily agreed

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<v Speaker 1>to by Facebook in twelve has been broken for a

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<v Speaker 1>second time will be on the table for discussions I

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<v Speaker 1>expect between the FTC and Facebook when the forensics of

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<v Speaker 1>the particular incidents or maybe more than one incident we

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<v Speaker 1>don't even know exactly whether it was one set of

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<v Speaker 1>leagus or multiple scraping. And it's bound up with some

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<v Speaker 1>other questions, particularly around the phone numbers, because in Facebook

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<v Speaker 1>publicly acknowledged that they were using phone numbers that users

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<v Speaker 1>provided for two factor authentication purposes and security as a

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<v Speaker 1>functionality enhancement to allow for user look up of other users,

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<v Speaker 1>and so there was a profuscilist of time around that

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<v Speaker 1>choice by Facebook to repurpose information that for many users

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<v Speaker 1>would have been provided with an expectation of a narrow

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<v Speaker 1>security related use, but not necessarily a use repurposing for

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<v Speaker 1>helping other Facebook users find them. So there are a

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<v Speaker 1>bundle of various practices that will potentially be implicated in

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<v Speaker 1>these conversations, as well as the context of what was

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<v Speaker 1>disclosed by Facebook to the SEC at the time of

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<v Speaker 1>the June Does Facebook know what happened? I would hope so. Um,

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<v Speaker 1>but this is the first question. So the issue of

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<v Speaker 1>the extent of forensic analysis internally and what the company

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<v Speaker 1>knew when and how much of it was a design choice,

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<v Speaker 1>how much of it was a well executed incident response,

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<v Speaker 1>was the point at which they found out about it,

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<v Speaker 1>or how much of the conduct around this incident was

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<v Speaker 1>a response that some regulators, for example the EU or

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<v Speaker 1>Australian regulators may deem to not reflect the expectations that

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<v Speaker 1>they have for companies in possession of their residents information.

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<v Speaker 1>So the details and the forensics here are going to

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<v Speaker 1>be this positive. So that's a little bit of a

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<v Speaker 1>wait and see right now. But EU regulators have already

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<v Speaker 1>announced that they will be conducting further inquiries. I would

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<v Speaker 1>expect the FT set of fellow suits in the US,

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<v Speaker 1>and it's possible that the spec will take a look

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<v Speaker 1>depending on what the nature of the disclosures were by

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<v Speaker 1>the company and the relevant tent case statements, because there

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<v Speaker 1>are securities to exchange Commission guidance documents around disclosure of

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<v Speaker 1>security incidents and um. Obviously, public companies have reporting duties

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<v Speaker 1>around material risks to business and material litigation risks on

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<v Speaker 1>an ongoing basis under thirty four. Book has made privacy

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<v Speaker 1>settlements with the FTC twice once in and once in.

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<v Speaker 1>In light of that, how much credibility do they have

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<v Speaker 1>when they say they want to protect users privacy? Critics

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<v Speaker 1>of Facebook have certainly raised that point. UH that in

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<v Speaker 1>UH this point in the history of the company. Critics

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<v Speaker 1>would argue there has been so many sequential problems that

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<v Speaker 1>there is a broader story potentially being told of a

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<v Speaker 1>company that is very interested in public face and statements,

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<v Speaker 1>but not necessarily interested in creating a culture of data

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<v Speaker 1>protection and stewardship. And critics haven't founding this alarms since

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<v Speaker 1>really the UH creation of the company, UH, particularly circa

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<v Speaker 1>two thousands seven two D they're started to be material

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<v Speaker 1>modifications and the privacy default and Facebook um, and so

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<v Speaker 1>there's been a constant UH set of concerns raised by

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<v Speaker 1>privacy advocates, m consumers as well UM, dating back to

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<v Speaker 1>the early days of the company. So your point is

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<v Speaker 1>well taken. Well state attorneys general look into this, It's

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<v Speaker 1>entirely possible that state attorneys general will also inquire as

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<v Speaker 1>to the specifics of these incidents. State attorneys general would

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<v Speaker 1>have authority to potentially engage in state love enforcement action

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<v Speaker 1>under the Mini FTC Acts, meaning the state specific Unfair

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<v Speaker 1>and Deceptive Trade Practices statutes that are a matter of

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<v Speaker 1>state law and generally tend to parallel the structure of

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<v Speaker 1>the FTC Act Section five on the federal level, So

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<v Speaker 1>it would be entirely unsurprising if some state regulators who

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<v Speaker 1>already have Facebook in their cross hairs from previous incidents

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<v Speaker 1>of data stewardships, UM suboptimal incidents, and the concerns over

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<v Speaker 1>tech concentration and competition hindrance that are in the ether

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<v Speaker 1>now both on the state and the federal level, as

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<v Speaker 1>well as UH formal legal proceedings in some cases against

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<v Speaker 1>large technology companies. That environment is one of greater regulatory

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<v Speaker 1>and state attorneys general scrutiny. So I would not at

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<v Speaker 1>all be surprised if the more tech savvy tech engage

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<v Speaker 1>to state attorneys general do indeed have some tough questions

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<v Speaker 1>on this point. What about class action lawsuits? What kind

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<v Speaker 1>of class action lawsuits could we see? So depending on

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<v Speaker 1>the extent to which data Breach no Applications statutes were

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<v Speaker 1>UH complied with or potentially not fully UH followed, there

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<v Speaker 1>may be an individual level positive action in the state

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<v Speaker 1>with more aggressively drafted data breach notifications statutes and Massachusetes

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<v Speaker 1>being one of the UM California potentially giving rise to

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<v Speaker 1>individual level suits. At least some of these cases may

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<v Speaker 1>end up being class actions, and the jurisdictions that are

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<v Speaker 1>more friendly to class actions. In particular, the nature of

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<v Speaker 1>the data that was released will be relevant because some

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<v Speaker 1>of those data breach notification statutes are contingent in the

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<v Speaker 1>rights that they grant based on the nature of the

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<v Speaker 1>information that was disclosed about consumers residing in their states.

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<v Speaker 1>So this is another situation where the specifics of the

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<v Speaker 1>Facebook response at the time that they found out whenever

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<v Speaker 1>that was, and the extent of the data loss of

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<v Speaker 1>control and the extent of response, forensic analysis and overall

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<v Speaker 1>conduct around the incident response will be in play. So

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<v Speaker 1>I would not be surprised to see class actions UM

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<v Speaker 1>they are becoming increasingly frequent in parallel situations to this one.

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<v Speaker 1>It is also possible that, depending on the nature of

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<v Speaker 1>the disclosure in the ten K annual reports that I

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<v Speaker 1>mentioned previously, where Facebook has an obligation under the thirty

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<v Speaker 1>four Acts file periodic reports with the SEC, if the

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<v Speaker 1>disclosure did not extend with um adequate specificity and notice

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<v Speaker 1>in the opinion of securities litigators UH, there is an

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<v Speaker 1>active securities class action bar. It is possible that we

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<v Speaker 1>may see class action attempted based on the tent K

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<v Speaker 1>disclosures or lack thereof. Particularly if this does result in

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<v Speaker 1>a new fine from the FTC, the EU or another

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<v Speaker 1>national regulator. Do the fines effect Facebook at all? Their

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<v Speaker 1>massive fines but there are just a drop in the

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<v Speaker 1>bucket compared to what Facebook is worth it makes. This

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<v Speaker 1>is a critique that has been the topic of discussion,

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<v Speaker 1>certainly the STCs last fine, which was in the neighborhood

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<v Speaker 1>of five billion dollars. The approach that the US regulators

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<v Speaker 1>take is a more constrained one than European regulators. The

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<v Speaker 1>amounts of any subsequent finds may be more aggressive under

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<v Speaker 1>a g d PR based approach because g d p

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<v Speaker 1>R authorizes sign that are contingent on corporate earnings. So

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<v Speaker 1>this question of the proper construction of signs in a

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<v Speaker 1>way to send a message companies is one that that

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<v Speaker 1>has been definitely discussed. It's a fair critique if you can,

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<v Speaker 1>in essence plan and to your business model the amount

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<v Speaker 1>of the fine and the fine is maturely less than

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<v Speaker 1>the revenue generated in UH, say a single quarter, then

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<v Speaker 1>the business incentives UH, some whould argue, are to simply

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<v Speaker 1>view that fine as the cost of doing business, particularly

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<v Speaker 1>when you have waivers by enforcers of finding any personal

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<v Speaker 1>responsibility on the part of officers and directors for oversight failures,

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<v Speaker 1>you set up potentially a situation where that kind of

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<v Speaker 1>cost benefit calculation is more likely, and particularly if a

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<v Speaker 1>company does tend to have a history of repeating kinds

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<v Speaker 1>of problems, you may not be some whould argue creating

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<v Speaker 1>the incentive for an ethical internal self evaluation as to

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<v Speaker 1>whether the current management structures are optimally calibrated to identify

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<v Speaker 1>these kinds of problems early enough in the process and

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<v Speaker 1>correct them quickly enough. Some of the data sharing decisions

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<v Speaker 1>that were made internally may have facilitated the aggregation and

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<v Speaker 1>availability of data that then create a more attractive target

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<v Speaker 1>for attackers. So, assuming that there was a malicious intrusion,

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<v Speaker 1>which we don't know, then the way that you build

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<v Speaker 1>and design your products makes them more or less attractive targets.

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<v Speaker 1>And if there was no intrusion, but instead this was

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<v Speaker 1>the aggressive use of an API or or an interface

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<v Speaker 1>of other sorts that's designed to share information, for example,

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<v Speaker 1>allowing for data scraping, then the question again comes back

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<v Speaker 1>to products design and whether the threat modeling was done

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<v Speaker 1>in a way that accurately legally modeled the risk down

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<v Speaker 1>the road in terms of regulatory action and loss of

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<v Speaker 1>consumer truck arising from problems that may happen because of

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<v Speaker 1>the design choices in the way that the products works.

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<v Speaker 1>And is this data breach particularly problematic in that in

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<v Speaker 1>the amount of information that was given out on person

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<v Speaker 1>you know, for example, you mentioned the phone number that's

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<v Speaker 1>related to two fact authentication. In particular, could that disclosure

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<v Speaker 1>of the phone number be problematic for consumers depending on

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<v Speaker 1>whether the consumer volunteers the phone number or limited purpose,

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<v Speaker 1>or whether it was a generally shared phone number. Those

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<v Speaker 1>specifics I think are relevant to regulators determinations business conduct.

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<v Speaker 1>The question of, say a phone number being published, some

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<v Speaker 1>consumers would certainly view it as at least a material

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<v Speaker 1>inconvenience that their phone numbers are now available for public use,

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<v Speaker 1>potentially leading some consumers to want to change their phone number.

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<v Speaker 1>The consequences of sharing a phone number are potentially less

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<v Speaker 1>direct in some ways than sharing, say birthday or other

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<v Speaker 1>put a personally and unifiable information that can't be changed.

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<v Speaker 1>You can change your phone number, but you can't change

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<v Speaker 1>your birthday. So the nature of the information that is

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<v Speaker 1>included in these exposed databases will be relevant. The way

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<v Speaker 1>that the information was shared originally by consumers will be

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<v Speaker 1>relevant as a matter of privacy. The extent of security practices,

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<v Speaker 1>the product design and data stewardship choices as a matter

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<v Speaker 1>of security will be relevant to the security increase that

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<v Speaker 1>regulators will undertake. Uh So, you know, again, the specifics

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<v Speaker 1>here of what exactly happens and which ss of data

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<v Speaker 1>and how they're integrated will become very relevant. Thanks Andrea.

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<v Speaker 1>That's Professor Andrea ma Tuition, Associate Dean of Innovation and

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<v Speaker 1>Technology at Penn State Law. This week, the Supreme Court

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<v Speaker 1>denied the US Solicitor General's request to argue in an

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<v Speaker 1>upcoming case, something the Court has done just three times

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<v Speaker 1>in the past two decades, but twice now in under

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<v Speaker 1>a year. Joining me is Bloomberg Law. Supreme Court reporter

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<v Speaker 1>Kimberly Strawbridge Robinson explain the Solicitor General's role and how

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<v Speaker 1>this listener general requests to argue in cases where the

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<v Speaker 1>government is not a party. Well, the Solicitor General is

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<v Speaker 1>the federal government's top lawyer at the U s. Supreme Court,

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<v Speaker 1>and while they do some work in the lower appellate

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<v Speaker 1>courts as well, really their focus is on the Supreme Court,

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<v Speaker 1>and they have a really unique place as a litigant.

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<v Speaker 1>They're they're not only the most frequent litigant in the

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<v Speaker 1>Supreme Court by far, but they also hold a special

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<v Speaker 1>place of trust within the Supreme Court. And the office

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<v Speaker 1>is sometimes known as the tenth Justice because of that

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<v Speaker 1>special role. And so we can see that play out

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<v Speaker 1>in many different ways that the Solicitor General interact with

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<v Speaker 1>the justices. But one that we noticed recently is when

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<v Speaker 1>the Solicitor General requests to argue in the case and

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<v Speaker 1>which is not really a party, but in which there's

0:18:08.800 --> 0:18:10.960
<v Speaker 1>some kind of federal interests. So this is what it

0:18:11.160 --> 0:18:13.440
<v Speaker 1>requests argue as a friend of the court rather than

0:18:13.520 --> 0:18:17.239
<v Speaker 1>as a party. And do the justices always honor this

0:18:17.359 --> 0:18:21.120
<v Speaker 1>listener general's request to argue? Well in modern history, yes,

0:18:21.400 --> 0:18:24.520
<v Speaker 1>there's a forthcoming law review article out that looked at

0:18:24.720 --> 0:18:27.600
<v Speaker 1>a period of ten years starting in uh, you know,

0:18:27.720 --> 0:18:30.760
<v Speaker 1>the two thousand and tents that said that when other

0:18:31.080 --> 0:18:35.040
<v Speaker 1>organizations requested argument time as a friend of the court,

0:18:35.359 --> 0:18:37.840
<v Speaker 1>the court only granted it, uh, you know, less than

0:18:37.880 --> 0:18:40.480
<v Speaker 1>half of the time, fourteen out of forty one time.

0:18:40.920 --> 0:18:43.760
<v Speaker 1>But when it was the federal government asking they granted

0:18:43.800 --> 0:18:46.840
<v Speaker 1>it three hundred and eleven, three hundred and twelve times,

0:18:46.840 --> 0:18:51.680
<v Speaker 1>so basically every time. But that's you know, something that's

0:18:51.800 --> 0:18:54.359
<v Speaker 1>very small when they deny it, and so it really

0:18:54.720 --> 0:18:58.320
<v Speaker 1>makes court watchers notice when the justices actually rebuffs a

0:18:58.440 --> 0:19:02.639
<v Speaker 1>solicitor general in this way. So the solicitor General was

0:19:02.720 --> 0:19:08.359
<v Speaker 1>delta rejection recently tell us about that, Well, recently the

0:19:08.520 --> 0:19:11.680
<v Speaker 1>Justices did just that. They told the Solicitor General, no,

0:19:11.840 --> 0:19:14.800
<v Speaker 1>thank you, we don't uh want to give you precious

0:19:14.880 --> 0:19:18.919
<v Speaker 1>argument time in a case about a pellet cost. And

0:19:18.960 --> 0:19:21.520
<v Speaker 1>it's notable because it is one of these rare times

0:19:22.040 --> 0:19:25.160
<v Speaker 1>where they were turned away, but also because it's happened

0:19:25.160 --> 0:19:28.560
<v Speaker 1>twice now in just under a year or something that

0:19:28.840 --> 0:19:31.080
<v Speaker 1>you know, if you look over three hundred and eleven

0:19:31.080 --> 0:19:34.320
<v Speaker 1>out of three hundred and twelve time versus something happening

0:19:34.480 --> 0:19:37.080
<v Speaker 1>twice in one year, you know, that's that's a noticeable

0:19:37.240 --> 0:19:40.400
<v Speaker 1>up chick. Of course, it's too small of a sample

0:19:40.480 --> 0:19:43.639
<v Speaker 1>size to really say that, you know, it's an increasing trend,

0:19:43.960 --> 0:19:47.199
<v Speaker 1>but it's something to watch for sure. Is there something

0:19:47.400 --> 0:19:51.560
<v Speaker 1>similar in the two cases that were denied, Well, you know,

0:19:51.640 --> 0:19:54.439
<v Speaker 1>all we can really do is speculate I've said before

0:19:54.760 --> 0:19:57.439
<v Speaker 1>um on the show that the Supreme Court, you know,

0:19:57.520 --> 0:19:59.879
<v Speaker 1>doesn't really explain a lot. It's a very kind of

0:20:00.000 --> 0:20:03.199
<v Speaker 1>secretive institution. And so it didn't tell us why it

0:20:03.320 --> 0:20:06.760
<v Speaker 1>turned away the solicitor general here, but we can guess that.

0:20:07.160 --> 0:20:11.000
<v Speaker 1>You know, normally the cases where the Solicitor General is

0:20:11.000 --> 0:20:13.800
<v Speaker 1>seeking to argue as a friend of the court, there's

0:20:13.800 --> 0:20:16.280
<v Speaker 1>a pretty strong federal interest. And so there was a

0:20:16.320 --> 0:20:20.320
<v Speaker 1>case earlier this term where we saw a regulated party

0:20:20.440 --> 0:20:23.920
<v Speaker 1>challenging a state law that's that it was preempted by

0:20:24.000 --> 0:20:26.680
<v Speaker 1>another federal law. And you can see, you know, the

0:20:27.080 --> 0:20:31.120
<v Speaker 1>federal interests there and sending, uh, what the federal law means.

0:20:31.160 --> 0:20:33.800
<v Speaker 1>It is pretty strong, and so the Solicitor General was

0:20:33.840 --> 0:20:37.200
<v Speaker 1>allowed to argue in that case. In these other cases,

0:20:37.280 --> 0:20:40.760
<v Speaker 1>the solicitor general stated interest is is really one as

0:20:40.800 --> 0:20:43.399
<v Speaker 1>kind of like a general litigant. Um. So one was

0:20:43.400 --> 0:20:47.160
<v Speaker 1>about jurisdiction and state courts, and this current latest one

0:20:47.200 --> 0:20:51.120
<v Speaker 1>is about appellate cost and so there really isn't an

0:20:51.119 --> 0:20:55.800
<v Speaker 1>explanation about how the United States is situated any differently,

0:20:56.200 --> 0:20:59.320
<v Speaker 1>um than any other litigant would be. So you talked

0:20:59.320 --> 0:21:02.480
<v Speaker 1>to several experts, what did they say about this. Do

0:21:02.560 --> 0:21:05.080
<v Speaker 1>they see it as the courts sending a message to

0:21:05.160 --> 0:21:10.000
<v Speaker 1>the s G. Well, again, it's too few instances right

0:21:10.040 --> 0:21:13.080
<v Speaker 1>now to make any generalized terms. I think, you know,

0:21:14.040 --> 0:21:18.399
<v Speaker 1>with just this, before we had this latest rebuff, you know,

0:21:18.480 --> 0:21:21.080
<v Speaker 1>there was some speculation that the justices are just going

0:21:21.119 --> 0:21:23.240
<v Speaker 1>to do this every once in a while. It's a

0:21:23.320 --> 0:21:26.680
<v Speaker 1>token measure to remind the Solicitor generals that they don't

0:21:26.720 --> 0:21:30.000
<v Speaker 1>get to argue as of course, but you know, there

0:21:30.160 --> 0:21:34.359
<v Speaker 1>is some idea um that perhaps the justices are picking

0:21:34.400 --> 0:21:37.960
<v Speaker 1>up this practice because the Solicitor General has is really

0:21:38.000 --> 0:21:41.440
<v Speaker 1>asking to argue in more cases, uh than it ever

0:21:41.560 --> 0:21:44.720
<v Speaker 1>has before. And so we see them, I think it

0:21:44.800 --> 0:21:47.520
<v Speaker 1>was last term they were in you know, something like

0:21:47.600 --> 0:21:51.800
<v Speaker 1>eighty of the cases. And you know that can really

0:21:51.840 --> 0:21:55.720
<v Speaker 1>skew the you know, the policy arguments that are put

0:21:55.760 --> 0:21:58.240
<v Speaker 1>in front of the justices and ultimately the way that

0:21:58.280 --> 0:22:01.080
<v Speaker 1>they come out. So that's right now a lot of

0:22:01.080 --> 0:22:03.639
<v Speaker 1>speculation and something to watch. But it could be a

0:22:03.720 --> 0:22:07.040
<v Speaker 1>signal that the justices are sending to the Solicitor General

0:22:07.119 --> 0:22:10.240
<v Speaker 1>to kind of be more cautious about when you asked

0:22:10.240 --> 0:22:14.600
<v Speaker 1>for time. Does giving the Solicitor General time cut into

0:22:14.640 --> 0:22:18.400
<v Speaker 1>the time of the other parties who are arguing. It can,

0:22:18.560 --> 0:22:21.240
<v Speaker 1>but it really depends on a case by case basis.

0:22:21.600 --> 0:22:25.119
<v Speaker 1>And and so you know, we saw sometimes the solicitor

0:22:25.160 --> 0:22:28.040
<v Speaker 1>General will be given uh, you know, ten of the

0:22:28.119 --> 0:22:31.560
<v Speaker 1>thirty minutes that decides that they're arguing on it has

0:22:31.640 --> 0:22:34.800
<v Speaker 1>to make their argument. In in a case, the same

0:22:34.880 --> 0:22:37.080
<v Speaker 1>day that they turned away the solicitor general in that

0:22:37.119 --> 0:22:40.680
<v Speaker 1>appellate cost case, they actually granted the solicitor general ten

0:22:40.880 --> 0:22:43.679
<v Speaker 1>extra minutes on top of us thirty minutes that the

0:22:43.720 --> 0:22:47.520
<v Speaker 1>party who they're supporting has. So it really depends. But yes,

0:22:47.640 --> 0:22:51.040
<v Speaker 1>typically it does actually take away from the party's time.

0:22:51.520 --> 0:22:54.400
<v Speaker 1>And you know that's pretty significant when you consider that

0:22:55.080 --> 0:22:58.080
<v Speaker 1>often the solicitor General they're coming down on the side

0:22:58.080 --> 0:23:01.040
<v Speaker 1>of that party, but they're making for an argument and

0:23:01.080 --> 0:23:04.400
<v Speaker 1>putting forth different ways that the justices should decide the case.

0:23:04.800 --> 0:23:08.680
<v Speaker 1>In your story, you talk about a case involving California's

0:23:08.760 --> 0:23:12.959
<v Speaker 1>rule requiring charities to disclose the biggest donors, and in

0:23:13.000 --> 0:23:16.800
<v Speaker 1>that case, the court is refusing to divide the argument

0:23:16.840 --> 0:23:21.480
<v Speaker 1>time among the petitioners. So these are actually two cases

0:23:21.600 --> 0:23:25.440
<v Speaker 1>that have the same issue, but they involved different parties. UH.

0:23:25.520 --> 0:23:29.359
<v Speaker 1>And the Supreme Court has consolidated those cases for just

0:23:29.480 --> 0:23:32.320
<v Speaker 1>one hour of argument since they involved you know, the

0:23:32.400 --> 0:23:35.920
<v Speaker 1>same legal issues, and the parties had asked if they

0:23:35.920 --> 0:23:39.320
<v Speaker 1>could divide the time between you know, both sets of

0:23:39.400 --> 0:23:43.919
<v Speaker 1>petitioners and then give you know, additional time to the respondent,

0:23:44.400 --> 0:23:48.359
<v Speaker 1>but the Supreme Court notably said no, YouTube petitioners have

0:23:48.440 --> 0:23:52.760
<v Speaker 1>to decide one attorney to represent both of your arguments.

0:23:52.960 --> 0:23:55.720
<v Speaker 1>And at the same time it allowed the Solicitor General

0:23:55.840 --> 0:23:58.280
<v Speaker 1>to step in as a friend of the court um.

0:23:58.400 --> 0:24:00.280
<v Speaker 1>So you can see how, you know, there are really

0:24:00.400 --> 0:24:04.879
<v Speaker 1>small differences between the arguments that the petitioners are making,

0:24:05.240 --> 0:24:08.639
<v Speaker 1>but that's pretty significant that the justices told them no,

0:24:09.160 --> 0:24:11.600
<v Speaker 1>they can't have separate time, but at the same time

0:24:11.680 --> 0:24:14.679
<v Speaker 1>gave extra time to the Solicitor General and has the

0:24:14.840 --> 0:24:19.040
<v Speaker 1>SGS record in arguments last term, well, the Solicitor General

0:24:19.080 --> 0:24:21.920
<v Speaker 1>has a pretty good record as a friend of the court.

0:24:21.960 --> 0:24:24.760
<v Speaker 1>That was a pretty good record um in general, even

0:24:24.760 --> 0:24:27.480
<v Speaker 1>including cases whereas a party, you know, the Supreme Court

0:24:27.640 --> 0:24:31.480
<v Speaker 1>usually takes cases to reverse them, so you don't see

0:24:31.480 --> 0:24:34.000
<v Speaker 1>a lot of repeat players coming up with a lot

0:24:34.080 --> 0:24:37.120
<v Speaker 1>of winning streaks at the court. But the Sluicitor General's

0:24:37.160 --> 0:24:41.679
<v Speaker 1>office did prevail in, you know, more than the cases

0:24:41.720 --> 0:24:43.840
<v Speaker 1>in which it was a party, But when you look

0:24:43.840 --> 0:24:45.840
<v Speaker 1>at when it's a friend of the court, those numbers

0:24:45.880 --> 0:24:49.080
<v Speaker 1>are really skewed. Last term, it won twenty two of

0:24:49.160 --> 0:24:52.280
<v Speaker 1>the cases where it weighed in as a friend of

0:24:52.280 --> 0:24:55.280
<v Speaker 1>the court as opposed to a party, saying, so, you know,

0:24:55.440 --> 0:24:58.240
<v Speaker 1>that's pretty significant given that you know, they're not really

0:24:58.240 --> 0:25:02.000
<v Speaker 1>officially a party in the case. Had the justices really

0:25:02.080 --> 0:25:05.399
<v Speaker 1>lean on what they have to say? There's an acting

0:25:05.440 --> 0:25:10.280
<v Speaker 1>solicitor general right now, Is there any word about when

0:25:10.720 --> 0:25:14.600
<v Speaker 1>or who Joe Biden my name as the next listener general.

0:25:15.040 --> 0:25:18.920
<v Speaker 1>I have been paying sources and I haven't heard any

0:25:19.000 --> 0:25:22.960
<v Speaker 1>word on who may be the next solicitor general. The

0:25:23.000 --> 0:25:25.720
<v Speaker 1>only thing that I really heard from the people that

0:25:25.760 --> 0:25:28.480
<v Speaker 1>I've talked to is that they think that the acting

0:25:28.640 --> 0:25:32.800
<v Speaker 1>Solicitor General Solicita's prologar and is doing a great job,

0:25:32.920 --> 0:25:35.960
<v Speaker 1>and they hope that the Biden administration might actually nominate

0:25:36.040 --> 0:25:38.840
<v Speaker 1>her to the top spot, something that's not really unheard of.

0:25:39.160 --> 0:25:42.680
<v Speaker 1>Um that happened with Trump's acting solicitor general. But no,

0:25:42.840 --> 0:25:47.200
<v Speaker 1>that's just I think speculationist point and the Biden administrations

0:25:47.320 --> 0:25:50.480
<v Speaker 1>keeping that s G position. Um, pretty quiet, right. Now,

0:25:51.040 --> 0:25:55.240
<v Speaker 1>let's turn to a Texas judge who has gotten a

0:25:55.280 --> 0:25:58.680
<v Speaker 1>lot of attention over the years. Judge Reid O'Connor. First

0:25:58.680 --> 0:26:01.680
<v Speaker 1>of all, tell us a little bit about him. So,

0:26:02.000 --> 0:26:06.719
<v Speaker 1>Judge O'Connor is really the go to Republican appointed judge

0:26:07.200 --> 0:26:13.000
<v Speaker 1>um for states who want to challenge Democratic administration policies. Um.

0:26:13.080 --> 0:26:17.320
<v Speaker 1>He's based in Texas, and you know, we've seen Texas

0:26:17.480 --> 0:26:21.000
<v Speaker 1>really lead a lot of red states, uh, red state

0:26:21.040 --> 0:26:26.400
<v Speaker 1>coalitions challenging things like Obamacare, challenging immigration policies under Obama

0:26:26.480 --> 0:26:30.200
<v Speaker 1>and now under Biden. Um. And he's really the judge

0:26:30.520 --> 0:26:33.800
<v Speaker 1>and his court is really the court where Texas has

0:26:33.800 --> 0:26:37.200
<v Speaker 1>filed those cases. Now, I want to be clear that

0:26:37.240 --> 0:26:40.399
<v Speaker 1>this is not something that only red states do. Of course,

0:26:40.400 --> 0:26:43.600
<v Speaker 1>blue states do it. Um. It's not just uh, you know,

0:26:44.080 --> 0:26:47.600
<v Speaker 1>political groups that do it. We see even international plaintiffs

0:26:47.920 --> 0:26:51.520
<v Speaker 1>seeking to you know, find a plaintiff friendly judge here

0:26:51.520 --> 0:26:54.080
<v Speaker 1>in the United States. So this idea, what we call

0:26:54.160 --> 0:26:57.720
<v Speaker 1>form shopping, is not anything specific to this judge. Um,

0:26:57.920 --> 0:27:00.720
<v Speaker 1>But this is the judge that's really the to judge

0:27:00.720 --> 0:27:05.320
<v Speaker 1>for challenging democratic policies. And tell us about some a

0:27:05.400 --> 0:27:09.120
<v Speaker 1>few of the cases that um, he drew a lot

0:27:09.160 --> 0:27:13.560
<v Speaker 1>of attention for, particularly the Obamacare decision. That's right. So

0:27:13.680 --> 0:27:17.240
<v Speaker 1>the Obamacare case, which I'm sure your listeners are familiar with,

0:27:17.480 --> 0:27:19.879
<v Speaker 1>is one that's actually in front of the Supreme Court

0:27:20.440 --> 0:27:22.800
<v Speaker 1>right now. It's the case that looks at, you know,

0:27:22.880 --> 0:27:27.399
<v Speaker 1>kind of a tweak that the Republican led Congress made

0:27:27.440 --> 0:27:30.760
<v Speaker 1>to the Affordable Care Act, and the argument is that

0:27:30.960 --> 0:27:34.240
<v Speaker 1>with that tweak, it kind of makes the whole Affordable

0:27:34.280 --> 0:27:38.520
<v Speaker 1>Care Acts fall apart. And this judge actually agreed with

0:27:38.560 --> 0:27:42.239
<v Speaker 1>that argument, struck down the entire Affordable Care Act. And

0:27:42.320 --> 0:27:47.080
<v Speaker 1>that's the decision that the justices are considering right now. Really,

0:27:47.320 --> 0:27:50.000
<v Speaker 1>that decision has got a lot of criticism, not just

0:27:50.040 --> 0:27:52.679
<v Speaker 1>from those on the left, but also those on the right.

0:27:52.840 --> 0:27:56.560
<v Speaker 1>We people who filed in the original Affordable Care Act

0:27:56.640 --> 0:27:59.919
<v Speaker 1>case on the side of those challenging UM that acts

0:28:00.040 --> 0:28:03.000
<v Speaker 1>saying that it was unconstitutional, saying that that ruling now

0:28:03.240 --> 0:28:06.960
<v Speaker 1>just really doesn't follow the law, and it's a really outlier. UM.

0:28:07.000 --> 0:28:10.080
<v Speaker 1>And I think most people expect after oral arguments that

0:28:10.160 --> 0:28:13.479
<v Speaker 1>the Supreme Court is going to reverse that decision. UM.

0:28:13.520 --> 0:28:15.640
<v Speaker 1>So it's decisions like that, you know, where we see

0:28:15.680 --> 0:28:17.359
<v Speaker 1>a lot of criticism on both the right and the

0:28:17.440 --> 0:28:22.040
<v Speaker 1>left that Judge O'Connor is known for. Explain this tweet,

0:28:22.359 --> 0:28:25.320
<v Speaker 1>and you know the whole context of this tweet, how

0:28:25.359 --> 0:28:28.960
<v Speaker 1>it came about. Well, you know, the administrative offices of

0:28:29.000 --> 0:28:31.400
<v Speaker 1>the U. S. Court, they are kind of the policy

0:28:31.440 --> 0:28:35.679
<v Speaker 1>making arm of the judiciary. They often put out, you know,

0:28:35.800 --> 0:28:39.920
<v Speaker 1>historical information on their tweets and social media sites. They

0:28:39.960 --> 0:28:43.000
<v Speaker 1>put out a lot of educational information, and they just

0:28:43.000 --> 0:28:47.080
<v Speaker 1>so fus small clips of Judge O'Connor saying that, you know,

0:28:47.480 --> 0:28:50.760
<v Speaker 1>a judge's role is simply to interpret the law and

0:28:50.800 --> 0:28:54.120
<v Speaker 1>if they have any disagreements with public policy, you know,

0:28:54.400 --> 0:28:57.680
<v Speaker 1>that's not for a judge to say. It's something pretty innocuous,

0:28:57.720 --> 0:29:01.959
<v Speaker 1>and I think it's something that most people learn about, um,

0:29:02.000 --> 0:29:05.480
<v Speaker 1>you know, an elementary of middle school, the role of judges. Um.

0:29:05.640 --> 0:29:08.480
<v Speaker 1>But it was not well received, given that it was

0:29:08.600 --> 0:29:12.520
<v Speaker 1>this particular judge making that statement. These tweets don't normally

0:29:12.600 --> 0:29:16.800
<v Speaker 1>get very many responses, but this did. It did, and

0:29:16.920 --> 0:29:20.880
<v Speaker 1>with a lot of mockery from academia and those who

0:29:20.960 --> 0:29:25.120
<v Speaker 1>practice in the federal courts saying, regardless of whether or

0:29:25.120 --> 0:29:30.400
<v Speaker 1>not that's true for some judges. That's not particularly credible

0:29:30.720 --> 0:29:33.680
<v Speaker 1>from Judge O'Connor, you know, whether that's fair or not,

0:29:34.080 --> 0:29:37.200
<v Speaker 1>or criticism that people can wield at other judges, I think,

0:29:37.560 --> 0:29:40.480
<v Speaker 1>you know, the point has taken that this particular judge

0:29:40.520 --> 0:29:43.960
<v Speaker 1>doesn't always follow that rule, and that's something we can

0:29:43.960 --> 0:29:46.880
<v Speaker 1>see not just in you know, our own personal opinions,

0:29:46.920 --> 0:29:49.680
<v Speaker 1>but also the times that he's been reversed by the

0:29:49.680 --> 0:29:53.760
<v Speaker 1>Supreme Court and higher appellate Court. That's Bloomberg Law Supreme

0:29:53.760 --> 0:29:57.200
<v Speaker 1>Court reporter Kimberly Strawbridge Robinson and that's it for the

0:29:57.320 --> 0:29:59.960
<v Speaker 1>edition of the Bloomberg Law Show. Remember you can always

0:30:00.080 --> 0:30:03.440
<v Speaker 1>the latest legal news by subscribing to our Bloomberg Law podcasts.

0:30:03.880 --> 0:30:06.640
<v Speaker 1>You can find them on Apple Podcasts, Spotify, and at

0:30:06.800 --> 0:30:11.880
<v Speaker 1>www dot Bloomberg dot com slash podcast Slash Law. I'm

0:30:12.000 --> 0:30:15.000
<v Speaker 1>June Grosso. Thanks so much for listening, and please tune

0:30:15.000 --> 0:30:17.800
<v Speaker 1>into The Bloomberg Law Show every weeknight at ten pm

0:30:17.840 --> 0:30:19.880
<v Speaker 1>Eastern right here on Bloomberg Radio.