Business Highlights: Ruling protects Sacklers from lawsuits; AI extinction risk warning
Ruling clears way for Purdue Pharma to settle opioid claims, protect Sacklers from lawsuits
A federal court ruling has cleared the way for OxyContin maker Purdue Pharma to settle thousands of legal claims over the toll of opioids. A three-judge panel of the 2nd U.S. Circuit Court of Appeals in New York on Tuesday overturned a lower court’s 2021 ruling that found bankruptcy courts did not have the authority to protect members of the Sackler family who own the company and who have not filed for bankruptcy protection from lawsuits. The concept is at the heart of Purdue’s plan to settle thousands of lawsuits in a deal that would include $5.5 billion to $6 billion from Sackler family members.
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The easiest way to get a $7,500 tax credit for an electric vehicle? Consider leasing.
DETROIT (AP) — Thanks to a boost from the government, leasing — not buying — is becoming the most affordable way to get your hands on an electric vehicle. Last year’s Inflation Reduction Act provided a federal tax credit of up to $7,500 to use toward an EV. A dealer can apply that credit to any leased electric vehicle, no matter where it’s made, to reduce a customer’s monthly payment. Not so for people who buy an EV. For buyers, only EVs made in North America qualify for the full tax credit. And only 10 of the 49 electric vehicles for sale in the United States this year meet that requirement.
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Artificial intelligence raises risk of extinction, experts say in new warning
Scientists and tech industry leaders, including executives at Microsoft and Google, have issued a new warning about the perils that artificial intelligence poses to humankind. The statement posted online Tuesday says that “mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.” Sam Altman, the CEO of ChatGPT maker OpenAI, and Geoffrey Hinton, a computer scientist known as the godfather of artificial intelligence, are among the hundreds of leading figures who signed the statement. Worries about artificial intelligence systems outsmarting humans and running wild have intensified with the rise of a new generation of highly capable AI chatbots such as ChatGPT.
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Elizabeth Holmes enters Texas prison to begin 11-year sentence for notorious blood-testing hoax
BRYAN, Texas (AP) — Theranos founder Elizabeth Holmes is in custody at the Texas prison where she will spend the next 11 years serving her sentence for overseeing an infamous blood-testing hoax. Holmes entered the minimum-security, federal women’s prison camp located in Bryan, Texas, on Tuesday. The arrival comes more than a year after a jury convicted Holmes on four felony counts of fraud and conspiracy in January 2022. She was sentenced to prison time in November.
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Facing GOP backlash, McCarthy labors to shore up votes for debt deal in time to prevent US default
WASHINGTON (AP) — Under fire from conservatives, House Speaker Kevin McCarthy is hunting votes from fellow Republicans for the debt ceiling deal. The Republican speaker urged GOP skeptics Tuesday to look at “the victories” in the package he negotiated with President Joe Biden. The White House and congressional leaders are working to ensure passage, in time to lift the nation’s borrowing limit and prevent a U.S. default. Hard-right conservatives are criticizing the deal, while liberals decry new work requirements for older Americans in the food aid program. A key test was coming Tuesday when the House Rules Committee was to consider the package. The full House is expected to vote Wednesday. Officials say the U.S. risks default June 5.
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LGBTQ+ activists call for new strategies to promote equality after Target backlash
RICHMOND, Va. (AP) — Activists in the LGBTQ+ community are calling for new ways to mobilize against threats to their long fight for equality. This comes after Target announced last week that it removed some products and relocated its Pride displays to the back of certain stores in the South after protestors confronted workers in stores. Activists have said new campaigns are needed to convince corporate leaders not to cave to anti-LGBTQ+ groups. Target is the latest company to face backlash over its support for the community. Nearly 500 anti-LGBTQ+ bills have been introduced in state legislatures around the country this year and at least 18 states have enacted laws restricting or banning gender-affirming care for transgender minors.
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Delta Air Lines hit with lawsuit over claims of carbon neutrality
A consumer class action lawsuit filed Tuesday claims Delta Air Lines inaccurately billed itself as the world’s “first carbon-neutral airline” and should pay damages. The complaint in federal court in California alleges the airline relied on carbon offsets that were largely bogus. Polluting companies often buy carbon credits to cancel out their emissions with projects that promise to absorb carbon dioxide out of the air, or prevent pollution. They’ve been under increasing scrutiny amid claims that benefits are exaggerated. The California resident who filed the lawsuit says she would not have flown Delta had she known more about the credits on which the airline relied.
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Consumer confidence declines again in May, 4th time in 5 months, particularly for older Americans
Consumer confidence fell in May as Americans, particularly older ones, became more pessimistic about the labor market, on top of elevated anxiety over inflation. The Conference Board reported Tuesday that its consumer confidence index fell to 102.3 in May from 103.7 in April. It’s the fourth time in five months that overall U.S. consumer confidence has declined. The business research group’s present situation index — which measures consumers’ assessment of current business and labor market conditions — fell to 148.6 from 151.8 last month. The board’s expectations index — a measure of consumers’ six-month outlook — ticked down slightly.
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Prosecutors say Sam Bankman-Fried’s arguments to dismiss cryptocurrency charges are meritless
NEW YORK (AP) — New York prosecutors say Sam Bankman-Fried’s lawyers made meritless arguments in a bid to convince a judge to toss out criminal charges alleging that the FTX founder stole from investors in his multibillion dollar cryptocurrency fund. Prosecutors filed papers late Monday in Manhattan federal court. Their arguments responded to early-May filings in which Bankman-Fried’s lawyers insisted that the federal government overreached in its case against Bankman-Fried, making federal crimes out of regulatory issues. Bankman-Fried has been living with his parents in Palo Alto, California after posting a $250 million personal recognizance bond after his December extradition from the Bahamas.
___ The S&P 500 rose 0.07 points, less than 0.1%, to 4,205.52. The Dow Jones Industrial Average fell 50.56 points, or 0.2%, to 33,042.78. The Nasdaq composite rose 41.74 points, or 0.3% to 13,017.43. The Russell 2000 index of smaller companies fell 5.73 points, or 1%, to 1,767.29.