court – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sat, 06 Sep 2025 05:17:53 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 court – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 XRP Army Credited for Court Win in Ripple’s SEC Battle https://earlybirdsinvest.com/xrp-army-credited-for-court-win-in-ripples-sec-battle/ https://earlybirdsinvest.com/xrp-army-credited-for-court-win-in-ripples-sec-battle/#respond Sat, 06 Sep 2025 05:17:53 +0000 https://earlybirdsinvest.com/xrp-army-credited-for-court-win-in-ripples-sec-battle/

John Deaton, an attorney who represented XRP
XRP


$2.81

holders during Ripple’s legal dispute with the US Securities and Exchange Commission (SEC), shared in a post on X that community participation helped shape the outcome of the case.

He noted that the thousands of statements submitted by XRP users led the judge to recognize that the token, in some cases, was not sold as a security.

The legal fight began in 2020, when the SEC accused Ripple and two executives of selling XRP without proper registration.

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Over the next few years, XRP buyers formed an online community, often referred to as the “XRP Army“. Deaton said they organized around the case and submitted affidavits to the court to explain how they used the token.

These statements described XRP as a digital asset purchased through exchanges, without direct involvement from Ripple. Many participants argued that their decisions were not based on the company’s actions, and they did not expect to profit from Ripple’s business activities.

Deaton pointed to that reference as proof that community members made a difference. According to him, had the judge not mentioned the affidavits, it would be fair to question their relevance.

However, since they were included, he argued that their efforts had a clear role in shaping the court’s understanding.

Supporters had spent months gathering and submitting their statements. Each affidavit served as a formal declaration, which offered insight into how retail investors approached XRP.

Deaton said these filings showed that many users did not view XRP as an investment in Ripple’s success, which helped the court separate everyday users from institutional buyers.

On August 7, the SEC and Ripple jointly requested that the US Court of Appeals for the Second Circuit dismiss their cases. What did they say? Read the full story.


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US Court Grants Stay In Coinbase Biometric Data Lawsuit — Details https://earlybirdsinvest.com/us-court-grants-stay-in-coinbase-biometric-data-lawsuit-details/ https://earlybirdsinvest.com/us-court-grants-stay-in-coinbase-biometric-data-lawsuit-details/#respond Sat, 23 Aug 2025 18:37:53 +0000 https://earlybirdsinvest.com/us-court-grants-stay-in-coinbase-biometric-data-lawsuit-details/

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In the latest development, an Illinois judge has granted a motion to pause proceedings in a lawsuit against US-based cryptocurrency exchange Coinbase. This decision would suspend further actions in the crypto company’s court case involving alleged violations of the state’s Biometric Information Privacy Act (BIPA).

How Another Case Could Decide The Outcome Of Coinbase Lawsuit

According to an August 21 filing in the US District Court for the Northern District of Illinois Eastern Division, Judge Sharon Johnson Coleman approved a motion submitted by Coinbase to stay a lawsuit accusing the exchange of violating the state’s Biometric Information Privacy Act. The motion asked the court to wait for a ruling from the US Court of Appeals for the Seventh Circuit on a similar case.

The Court of Appeals case involves Nuance Communications and Charles Schwab, with the intricacies around supplying voice identification technology forming the foundation of the legal battle. The decision from this particular lawsuit could set precedent for how BIPA affects financial service providers, including cryptocurrency exchanges.

The court document read:

[T]he Court finds that the stay would simplify the issues and streamline the trial […] reduce the burden of litigation on the Court and the parties […] [and] would not unduly prejudice or tactically disadvantage Plaintiffs.

The lawsuit, filed in May 2025 by a group of users, accused Coinbase of the “wholesale collection” of biometric data for its Know Your Customer (KYC) requirements without notifying the users, thereby violating the Illinois law. The plaintiffs also alleged that the crypto company inappropriately shared the faceprints with third-party verification providers. 

Under Illinois’ Biometric Information Privacy Act, private firms or organizations can face damages of up to $5,000 for each instance of reckless or intentional violation of the law and $1,000 per negligent violation of the BIPA. The plaintiffs also sought relief to cover their legal costs.

Coinbase Under Pressure From Data Security Breach

Due to a separate incident, Coinbase has been under scrutiny over the security of customer data. The crypto company revealed in May that a group of customer support contractors in India accessed account data for users in exchange for bribes.

While the customer contractors were eventually dismissed, the individuals behind the data breach tried to extort $20 million in Bitcoin from Coinbase. Ultimately, this incident has put Coinbase under pressure and called into question its process of handling personal user data.

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Second Circuit Court officially dismisses Ripple-SEC appeals, ending four-year legal battle https://earlybirdsinvest.com/second-circuit-court-officially-dismisses-ripple-sec-appeals-ending-four-year-legal-battle/ https://earlybirdsinvest.com/second-circuit-court-officially-dismisses-ripple-sec-appeals-ending-four-year-legal-battle/#respond Fri, 22 Aug 2025 20:04:05 +0000 https://earlybirdsinvest.com/second-circuit-court-officially-dismisses-ripple-sec-appeals-ending-four-year-legal-battle/

The US Court of Appeals for the Second Circuit issued a mandate on Aug. 22 approving the dismissal of the appeals in the case between Ripple and the Securities and Exchange Commission (SEC).

The court order, shared by lawyer James Filan on X, officially ends one of crypto’s most consequential legal battles. 

Despite the news, XRP’s price increased less than 1% within one hour, trading at $3.0694 as of press time.

The dismissal follows a joint filing on Aug. 7, in which Ripple and the SEC agreed to end their appeals after a formal Commission vote. 

The agreement marks the conclusion of a dispute that began in December 2020 when the SEC sued Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen for allegedly conducting an unregistered securities offering through XRP sales.

Legal battle concludes, ETF odds remain high

Under the settlement terms, XRP will not be classified as a security, representing a major victory for Ripple. Each side will cover its own legal costs, according to the court filing. 

Ripple’s Chief Legal Officer Stuart Alderoty previously described the agreement as closing a chapter that has overshadowed the crypto industry for nearly four years. 

The outcome places Ripple alongside other crypto firms like Coinbase that have successfully resolved enforcement actions with the SEC. Further, it removes regulatory uncertainty around XRP’s status, keeping the odds of approval of XRP exchange-traded funds (ETFs) high.

In February, Bloomberg ETF analysts Eric Balchunas and James Seyffart predicted 65% odds of approval for spot XRP ETFs in the US. 

Polymarket bettors placed their odds of such an approval happening this year at 98% in early June, followed by a 10% slide after the SEC delayed decisions on multiple filings the same month.

Despite the sliding odds on the crypto-based prediction market, Balchunas and Seyffart raised their odds to “90% or higher” on June 20.

Polymarket traders continued to oppose the analysts, taking the odds to 62% in early August after the news that Commissioner Caroline Crenshaw opposed the approval.

However, Balchunas reiterated the high odds of approval of XRP ETFs:

“Interesting, trades reporting how Polymarket odds of XRP ETF approval went down to 62% after the votes were disclosed showing Crenshaw voting no, but a) she’s gonna vote no on EVERYTHING and b) it’s meaningless, she’s outnumbered = we haven’t changed our odds, still at 95%.”

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The Supreme Court hands down incomprehensible gobbledygook about federal grants https://earlybirdsinvest.com/the-supreme-court-hands-down-incomprehensible-gobbledygook-about-federal-grants/ https://earlybirdsinvest.com/the-supreme-court-hands-down-incomprehensible-gobbledygook-about-federal-grants/#respond Fri, 22 Aug 2025 05:36:00 +0000 https://earlybirdsinvest.com/the-supreme-court-hands-down-incomprehensible-gobbledygook-about-federal-grants/

Late Thursday afternoon, the Supreme Court handed down an incomprehensible order concerning the Trump administration’s decision to cancel numerous public health grants. The array of six opinions in National Institutes of Health v. American Public Health Association is so labyrinthine that any judge who attempts to parse it risks being devoured by a minotaur.

As Justice Ketanji Brown Jackson writes in a partial dissent, the decision is “Calvinball jurisprudence,” which appears to be designed to ensure that “this Administration always wins.”

The case involves thousands of NIH grants that the Trump administration abruptly canceled which, according to Jackson, involve “research into suicide risk and prevention, HIV transmission, Alzheimer’s, and cardiovascular disease,” among other things. The grants were canceled in response to executive orders prohibiting grants relating to DEI, gender identity, or Covid-19.

A federal district court ruled that this policy was unlawful — “arbitrary and capricious” in the language of federal administrative law — in part because the executive orders gave NIH officials no precise guidance on which grants should be canceled. As Jackson summarized the district court’s reasoning, “‘DEI’—the central concept the executive orders aimed to extirpate—was nowhere defined,” leaving NIH officials “to arrive at whatever conclusion [they] wishe[d]” regarding which grants should be terminated.

According to Jackson, “the court found, as a factual matter, ‘an unmistakable pattern of discrimination against women’s health issues’ and ‘pervasive racial discrimination’—indeed, ‘palpable’ racial discrimination of a sort the judge had ‘never seen’ in 40 years on the bench.”

The question of whether this judge was correct to deem the Trump administration’s policy arbitrary and capricious, however, was not before the Supreme Court. Instead, the case hinged on a jurisdictional dispute.

Which court is supposed to hear this case?

As a general rule, lawsuits alleging that a federal policy is illegal are heard by federal district courts, while suits alleging that the federal government breached a contract are heard by the Court of Federal Claims.

In NIH, the plaintiffs alleged that the broader policy that led to their grants being canceled was illegal, so that suggests that this case should have been brought in a district court (which is where it was actually brought). But the case also bears some superficial similarity to a breach of contract suit, because it involved the government’s decision not to pay money that it had previously agreed to pay.

Four justices — the three Democrats plus Chief Justice John Roberts — concluded that these plaintiffs were right to bring their suit in the district court. Four other justices — Clarence Thomas, Samuel Alito, Neil Gorsuch, and Brett Kavanaugh — concluded that the case must be brought in the Court of Claims. That would mean that these plaintiffs would have to start over again in the claims court, and possibly that they would have to bring individual suits seeking to reinstate individual grants, rather than seeking a broad order attacking the entire grant cancellation policy.

Justice Amy Coney Barrett, meanwhile, cast the deciding vote. She claims that this suit must be split between the two courts. In her view, the district court was the proper venue for the plaintiffs to argue that the overall policy is illegal, but the claims court is the proper venue for them to actually seek the money they would have received if the grants are not canceled.

If that sounds confusing, it gets worse. Barrett’s opinion states that federal law bars the claims court from hearing “claims pending in other courts when those claims arise from ‘substantially the same operative facts.’” So these plaintiffs likely must wait until after they have fully litigated the question of whether the Trump administration’s broad policy is illegal in district court, before they can actually try to get any money in the claims court.

That could take years, especially if the first question is heard by the justices again. Moreover, as Jackson warns in her opinion, by the time the first round of litigation is finished, the plaintiffs may be unable to seek relief in the claims court because the statute of limitations for doing so will have expired.

The bottom line is that, because there are five votes for the proposition that some parts of this case go to the district court, and also five votes for the proposition that other parts of it go to the claims court, Barrett’s opinion controls the case. By the time this mess gets sorted out, it is likely that most — if not all — of the research at issue in NIH will be lost, even if the plaintiffs do prevail.

As Jackson writes, without any money to fund their operations, the grant recipients will need to “euthanize animal subjects, terminate life-saving trials, and close community health clinics.”

There are actually even more complexities in this case, but rather than engage in the Sysiphean task of trying to list all of them, I will simply repeat Jackson’s summary of what appears to be going on here:

In a broader sense, however, today’s ruling is of a piece with this Court’s recent tendencies. “[R]ight when the Judiciary should be hunkering down to do all it can to preserve the law’s constraints,” the Court opts instead to make vindicating the rule of law and preventing manifestly injurious Government action as difficult as possible. This is Calvinball jurisprudence with a twist. Calvinball has only one rule: There are no fixed rules. We seem to have two: that one, and this Administration always wins.

Godspeed to the poor lawyers and judges who now have to untangle the mess this Court just created.

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WazirX Restructuring Plan Wins 95% Creditor Approval, Awaits Court Ruling https://earlybirdsinvest.com/wazirx-restructuring-plan-wins-95-creditor-approval-awaits-court-ruling/ https://earlybirdsinvest.com/wazirx-restructuring-plan-wins-95-creditor-approval-awaits-court-ruling/#respond Tue, 19 Aug 2025 14:11:45 +0000 https://earlybirdsinvest.com/wazirx-restructuring-plan-wins-95-creditor-approval-awaits-court-ruling/

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Indian crypto exchange WazirX has secured overwhelming creditor support, with more than 95% of voters backing its latest restructuring proposal, which now awaits regulatory approval from the Singapore High Court.

The creditor vote on the restructuring framework means the plan now requires judicial endorsement from Singapore’s court to authorize the Amended Scheme following the platform’s hacking incident.

According to a recent statement, WazirX Founder Nischal Shetty outlined that the restructuring blueprint includes platform preparations to restart operations and restore trading services for users “within 10 business days of the scheme taking effect.”

WazirX Creditor Voting Results and Process

The voting process, coordinated by parent entity Zettai Pte Ltd., was conducted through Kroll Issuer Services between July 30 and August 6, with eligibility restricted to account holders maintaining positive balances as of July 18, 2024.

A total of 149,559 creditors representing $206.9 million in validated claims took part in the process.

Among all participants, 143,190 creditors representing $195.7 million endorsed the proposal, exceeding the statutory thresholds established under Section 210(3AB) of the Singapore Companies Act 1967.

WazirX highlighted the results across social media platforms, disclosing that precisely 95.7% of participating Scheme Creditors backed the Amended Scheme of Arrangement.

The cryptocurrency exchange stated that “this outcome reaffirms the strong support shown in the first round of voting and reflects our community’s continued confidence in the restructuring plan.”

The restructuring framework proposes asset distribution through Zanmai India, which operates under India’s Financial Intelligence Unit oversight, designed to maintain transparency and regulatory compliance.

WazirX Restructuring Plan Wins 95% Creditor Approval, Awaits Court Ruling

Following court acceptance of the filing, Zettai will notify creditors via official communications, including copies of the relevant legal documentation.

This represents the second restructuring vote to advance after the Singapore Court previously dismissed the initial proposal.

Although the first plan also received majority creditor support, judicial authorities expressed concerns regarding the proposal’s equity and practical viability.

During that period, the exchange faced criticism from frustrated creditors who alleged fraudulent behavior due to extended delays.

The platform initially committed to asset redistribution by February 2025, leading many to suspect the exchange was exploiting legal complications to postpone user repayments.

Subsequently, in June, WazirX filed for reconsideration, and the court permitted additional arguments while extending the protective moratorium.

By August 2025, judicial authorities mandated a second vote on the modified restructuring scheme, providing WazirX another opportunity to advance its proposal.

WazirX Creditors Uncertain About Recovery Timeline of Funds

A disaster occurred in July 2024 when the WazirX platform suffered a cyberattack allegedly orchestrated by North Korea’s Lazarus Group, based on intelligence from the U.S. Department of State.

The incident resulted in losses exceeding $230 million, representing 45% of the platform’s total $500 million in holdings.

WazirX’s Singapore-registered parent company, Zettai Pte Ltd, immediately pursued creditor protection and received a four-month moratorium from Singapore’s High Court in September 2024, providing time to develop a comprehensive restructuring strategy.

Despite the positive voting outcome, WazirX customers remain skeptical about fund recovery prospects.

In February, the cryptocurrency exchange disclosed that reimbursements might face delays, potentially extending until 2030, contingent on the restructuring scheme’s final approval status.

The company’s communication outlined dual scenarios, one pathway if the restructuring gains approval and an alternative if rejection occurs.

Based on WazirX’s published framework, successful restructuring would enable systematic repayment scheduling, allowing creditors to recover assets more efficiently.

However, if the scheme faces rejection, creditors might endure prolonged uncertainty while the company’s ownership disputes remain unresolved.

If WazirX proceeds to liquidation, creditors may experience reduced recoveries due to liquidation expenses and the absence of recovery enhancement mechanisms.

The company also warned that extended proceedings could result in creditors missing future market appreciation, as asset values may diminish by the time of final distribution.


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Trump’s court victory on foreign aid impoundment, briefly explained https://earlybirdsinvest.com/trumps-court-victory-on-foreign-aid-impoundment-briefly-explained/ https://earlybirdsinvest.com/trumps-court-victory-on-foreign-aid-impoundment-briefly-explained/#respond Thu, 14 Aug 2025 04:27:21 +0000 https://earlybirdsinvest.com/trumps-court-victory-on-foreign-aid-impoundment-briefly-explained/

This story appeared in The Logoff, a daily newsletter that helps you stay informed about the Trump administration without letting political news take over your life. Subscribe here.

Welcome to The Logoff: The Trump administration’s decision to cancel billions in foreign aid can stand, a federal appeals court said today, in a major blow to global humanitarian aid.

What did the court actually decide? A three-judge panel on the DC Circuit Court of Appeals ruled 2-1 that the plaintiffs in the case weren’t eligible to bring the suit in the first place.

The majority found that only the Government Accountability Office can challenge the administration’s decision to withhold congressionally appropriated funds under a specific process laid out in the Impoundment Control Act of 1974.

What’s the context for this decision? Donald Trump and Elon Musk made US foreign aid programs one of their first targets upon taking power in January. Musk boasted about feeding the US Agency for International Development “into the wood chipper,” and Trump withheld billions in spending already authorized by Congress.

A number of humanitarian nonprofits sued to restore the withheld funds, alleging it was an unconstitutional violation of the separation of powers — but today’s ruling punts on that question altogether, instead focusing on procedure.

What will the impact of this freeze be? To put it simply, US foreign aid saves lives, and cutting it will cost them. Among the money the Trump administration will now be allowed to withhold is billions of dollars in funding for HIV/AIDS prevention and other global health programs.

What else should I know? Separate from the human impact, this is a significant decision for the Trump administration’s efforts to impound congressionally appropriated funds, for foreign aid and other purposes. Unless or until the GAO sues over impoundment, the administration can keep at it and keep chipping away at the separation of powers in the process.

And with that, it’s time to log off…

You know what The Logoff hasn’t featured in a while? That’s right — an animal livestream. Today I’m spotlighting one of my favorites from Brooks Falls in Katmai National Park, Alaska.

The park’s grizzly bear population is currently hard at work catching salmon to fatten up for the winter, and you can watch them do it here (they’re doing a great job). I hope it’s a lighter moment for your evening, and we’ll see you back here tomorrow.

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Binance Founder Changpeng Zhao Asks Court To Dismiss $1,760,000,000 FTX Bankruptcy Clawback Suit: Report https://earlybirdsinvest.com/binance-founder-changpeng-zhao-asks-court-to-dismiss-1760000000-ftx-bankruptcy-clawback-suit-report/ https://earlybirdsinvest.com/binance-founder-changpeng-zhao-asks-court-to-dismiss-1760000000-ftx-bankruptcy-clawback-suit-report/#respond Thu, 07 Aug 2025 19:23:54 +0000 https://earlybirdsinvest.com/binance-founder-changpeng-zhao-asks-court-to-dismiss-1760000000-ftx-bankruptcy-clawback-suit-report/

The former CEO of the crypto titan Binance is reportedly taking action to terminate the lawsuit filed by the bankruptcy estate of the collapsed digital asset exchange FTX.

In November, the FTX trust and FTX Digital Markets filed a suit against Binance, the exchange’s co-founder Changpeng Zhao and several other executives over a July 2021 share repurchase deal with FTX founder Sam Bankman-Fried.

Bloomberg reports that Zhao is now asking the US Bankruptcy Court for the District of Delaware to dismiss the claims seeking to claw back $1.76 billion that the trust and FTX Digital Markets say were improperly transferred by Bankman-Fried.

In a motion to dismiss filed on Monday, Zhao says the court does not have personal jurisdiction over him because of improper and ineffective service.

The motion argues that Zhao is a resident of the United Arab Emirates and, under the bankruptcy law, serving US counsel on a foreign defendant is improper and invalidates the complaint.

“The claims are so far removed from Delaware, and even the United States, that the statutes at issue, which lack extraterritorial application, do not even apply.”

The filing also says that the bankruptcy law does not definitively extend to foreign transfers, but the trust and FTX Digital Markets improperly attempt to extend their fraudulent transfer claims abroad.

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The Supreme Court just revealed its plan to make gerrymandering even worse, in Louisiana v. Callais https://earlybirdsinvest.com/the-supreme-court-just-revealed-its-plan-to-make-gerrymandering-even-worse-in-louisiana-v-callais/ https://earlybirdsinvest.com/the-supreme-court-just-revealed-its-plan-to-make-gerrymandering-even-worse-in-louisiana-v-callais/#respond Mon, 04 Aug 2025 19:18:11 +0000 https://earlybirdsinvest.com/the-supreme-court-just-revealed-its-plan-to-make-gerrymandering-even-worse-in-louisiana-v-callais/

One of the biggest mysteries that has emerged from the Trump-era Supreme Court is the 2023 decision in Allen v. Milligan.

In Milligan, two of the Republican justices — Chief Justice John Roberts and Justice Brett Kavanaugh — voted with the Court’s Democratic minority to strike down Alabama’s racially gerrymandered congressional maps, ordering the state to redraw those maps to include an additional district with a Black majority.

As Roberts emphasized in his opinion for the Court in Milligan, a lower court that also struck down these maps “faithfully applied our precedents.” But the Roberts Court frequently overrules or ignores precedents that interpret the Voting Rights Act — the federal law at issue in Milligan — to do more than block the most egregious forms of Jim Crow-like voter suppression. And the Court’s Republican majority is normally hostile to lawsuits challenging gerrymanders of any kind.

Most notably, in Rucho v. Common Cause (2019), the Republican justices held that federal courts may not hear suits challenging partisan gerrymanders. Among other things, Rucho enables tactics like Texas Republicans’ current plans to redraw that state’s congressional maps to maximize GOP power in Congress.

So why did two Republican justices break with their previous skepticism of gerrymandering suits in the Milligan case? A new order that the Supreme Court handed down Friday evening appears to answer that question.

The new order, in a case known as Louisiana v. Callais, suggests that the Court’s decision in Milligan was merely a minor detour, and that Roberts and Kavanaugh’s votes in Milligan were largely driven by unwise legal decisions by Alabama’s lawyers. The legal issues in the Callais case are virtually identical to the ones presented in Milligan, but the Court’s new order indicates it is likely to use Callais to strike down the Voting Rights Act’s safeguards against gerrymandering altogether.

The Callais order, in other words, doesn’t simply suggest that Milligan was a one-off decision that is unlikely to be repeated. It also suggests that the Court’s Republican majority will resume its laissez-faire approach to gerrymandering, just as the redistricting wars appear to be heating up.

A brief history of the Supreme Court’s approach to gerrymandering

Broadly speaking, there are two kinds of lawsuits alleging that a legislative map is illegally gerrymandered. Partisan gerrymandering suits claim that a map was drawn to maximize one major political party’s power at the expense of the other. Racial gerrymandering suits, meanwhile, allege that a state’s legislative maps improperly dilute the voting power of voters of a particular race.

Prior to Rucho, the Court imposed minimal — but not entirely nonexistent — limits on partisan gerrymandering. It has historically been more aggressive in policing racial gerrymanders.

The Supreme Court held in Davis v. Bandemer (1986) that federal courts may hear claims alleging that a state’s maps are so egregiously partisan that they amount to unconstitutional discrimination. The idea is that maps that intentionally inflate Democratic voters’ power, while minimizing Republican voters’ power (or vice-versa) violate the Constitution’s guarantee that all voters should have an equal say in elections.

Notably, however, no five justices agreed to a single legal standard that would allow courts to determine which maps are illegal partisan gerrymanders in Davis. Nor did a majority of the Court set such a standard in later lawsuits challenging partisan gerrymanders. In Rucho, the Republican justices essentially announced that the Court would give up its quest to find such a standard. A few years later, in Alexander v. NAACP (2024), those justices went even further, declaring that “as far as the Federal Constitution is concerned, a legislature may pursue partisan ends when it engages in redistricting.”

Though Davis’s limits on partisan gerrymandering were always fuzzy, it is likely that this ambiguity deterred at least some states from enacting extreme gerrymanders that might have caused the courts to intervene. At the very least, Rucho changed how states litigate gerrymandering suits. Before Rucho, states accused of gerrymandering would often try to offer another explanation for why their maps benefited one party or the other. Now, they will openly state in their briefs that they drew maps for partisan reasons — confident that federal judges will do nothing, despite these confessions.

Historically, however, the Court has imposed more concrete limits on racial gerrymanders. In Milligan, for example, the Court struck down Alabama congressional maps that would have given Black voters a majority in just one of the state’s seven districts (or 14 percent of the districts), despite the fact that Black people make up about 27 percent of the state’s population. The Court ordered the state to draw new maps with two Black-majority districts.

The linchpin of Milligan and similar cases is the Court’s decision in Thornburg v. Gingles (1986), which laid out the rules governing when an alleged racial gerrymander violates the Voting Rights Act (which broadly prohibits race discrimination in elections). The framework laid out in Gingles is notoriously complicated, but it turns on whether voters in a particular state vote in racially cohesive blocs.

Thus, for example, in a state where the white majority supports Republicans nearly all of the time, while the Black minority supports Democrats nearly all of the time, Gingles sometimes requires courts to redraw the state’s maps to ensure that the Black minority is adequately represented. This is because, in such a state, the white majority can wield its near-unanimous support for Republicans to cut Black voters (and Democrats) out of power altogether.

In a different state, where both Black and white voters sometimes vote for either party, Gingles tells courts to stay out of redistricting. Black voters, after all, are United States citizens who have as much of a right to choose their leaders as anyone else. So, if they choose to be represented by a white Republican in a free and fair election, that’s their choice and the courts should honor it.

Because Gingles only kicks in when an electorate’s racial demographics closely match its partisan voting patterns, it places some practical limits on both partisan and racial gerrymandering. In Milligan, for example, Alabama was not able to draw maps that maximized Republican voting power because doing so required the state to dilute Black voting power. So, even though Rucho prevents lawsuits that challenge partisan gerrymandering directly, Gingles sometimes allows suits which target it indirectly by alleging that a partisan gerrymander is also an impermissible racial gerrymander.

But now the Court is signaling that it is likely to overrule Gingles and abolish suits alleging that racial gerrymanders violate the Voting Rights Act altogether.

So what’s the deal with the Court’s new order in Callais?

The Callais case is virtually identical to Milligan — indeed, the cases are so similar that Louisiana said in a brief to the justices that Callais “presents the same question” as the Alabama redistricting case. Before the Callais case reached the justices, a lower court determined that Louisiana’s congressional maps violate Gingles, and ordered the state to draw an additional Black-majority district.

Nevertheless, when the Supreme Court heard oral arguments in Callais last March, all six of the Republican justices appeared to disagree with this lower court’s decision — although the lower court’s decision merely applied the same legal rules that the Supreme Court applied two years earlier in Milligan. Then, at the end of June, the Court issued a brief order announcing that it would hold an unusual second oral argument in Callais, and that it would seek additional briefing from the parties in this case.

On Friday, the Court issued a new order laying out what these parties should address in those briefs. Those briefs should examine whether the lower court order requiring Louisiana to draw an additional Black-majority district “violates the Fourteenth or Fifteenth Amendments to the U.S. Constitution.” The justices, in other words, want briefing on whether Gingles — and the Voting Rights Act’s safeguards against racial gerrymandering more broadly — are unconstitutional.

This suggestion that the Voting Rights Act may be unconstitutional — or, at least, that it violates the Republican justices’ vision of the Constitution — should not surprise anyone who has followed the Court’s voting rights cases.

In Shelby County v. Holder (2013), the Republican justices neutralized a different provision of the Voting Rights Act, which required states with a history of racist election practices to “preclear” new election laws with federal officials before they take effect. The Court’s Republican majority labeled this provision “strong medicine” that could be justified to combat the kind of widespread racial voting discrimination that existed during Jim Crow. But they argued that the United States was not racist enough in 2013 to justify letting preclearance remain in place.

“There is no denying,” Roberts wrote for the Court in Shelby County, “that the conditions that originally justified these measures no longer characterize voting in the covered jurisdictions.”

Although Kavanaugh joined nearly all of the majority opinion in Milligan, he also wrote a separate opinion indicating that he wanted to extend Shelby County to gerrymandering cases in a future ruling. “Even if Congress in 1982 could constitutionally authorize race-based redistricting under [the Voting Rights Act] for some period of time,” Kavanaugh wrote, “the authority to conduct race-based redistricting cannot extend indefinitely into the future.”

Gingles also suggests that Voting Rights Act suits challenging racial gerrymanders should eventually cease to exist. If the electorate ceases to be racially polarized — something that appears to be slowly happening — then Gingles plaintiffs will no longer be able to win cases, and the federal judiciary’s role in redistricting will diminish. But Kavanaugh seems to be impatient to end these suits while many states remain racially polarized.

Read in the context of Kavanaugh’s Milligan opinion, in other words, the new Callais order suggests that a majority of the justices have decided the Voting Rights Act’s safeguards against racial gerrymandering have reached their expiration date, and they are looking for arguments to justify striking them down.

It now looks like Milligan was Gingles’s last gasp. The Republican justices remain hostile both to the Voting Rights Act and toward gerrymandering suits more broadly. And they appear very likely to use Callais to remove one of the few remaining safeguards against gerrymanders.

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Game over for Google? Appeals court upholds Epic’s antitrust win https://earlybirdsinvest.com/game-over-for-google-appeals-court-upholds-epics-antitrust-win/ https://earlybirdsinvest.com/game-over-for-google-appeals-court-upholds-epics-antitrust-win/#respond Fri, 01 Aug 2025 00:11:53 +0000 https://earlybirdsinvest.com/game-over-for-google-appeals-court-upholds-epics-antitrust-win/

Be on the lookout for the Epic Games Store, as it should appear on the Google Play Store soon. After losing its appeal of a judge’s order, Google will now have to overhaul its app store policies. This includes letting third-party app stores onto its platform.

Today, the Ninth Circuit Court of Appeals decided (via Bloomberg) to uphold the ruling from the original Epic v. Google lawsuit. This decision found the Play Store and the tech giant’s payment systems to be monopolies. As a result, Google will have to follow the remedies from that antitrust case. These remedies include limiting the company’s ability to pay phone makers to preinstall the Play Store, allowing developers to use other payment systems, and opening up Android to third-party app stores.

This decision comes after Google won a temporary administrative stay in 2024. However, Google was still forced to stop making deals with other phone manufacturers that prohibited shipping hardware with non-Google app stores installed.

After the ruling was handed down, Google’s VP of Regulatory Affairs, Lee-Anne Mulholland, provided the following statement:

This decision will significantly harm user safety, limit choice, and undermine the innovation that has always been central to the Android ecosystem. Our top priority remains protecting our users and developers, and ensuring a secure platform as we continue our appeal.

Developers Alliance Board Chair Jake Ward echoes the sentiment that Google offered. In a statement sent to Android Authority, Ward said:

The Ninth Circuit has spoken — and apparently, building a secure platform that sparks innovation is now grounds for punishment. By upholding the District Court’s remedies, the court has handed Apple complete dominance of the app market on a silver platter.

 

These misguided remedies will not promote competition or help consumers, but will jeopardize the trust and value that developers find in the Android ecosystem. Forcing Google to distribute third-party app stores on Google Play and allowing developers to link to unsecure destinations creates security concerns that will undermine consumer trust in Android.

 

In an unsettled economy, developers need support and stability — not judicial overreach that introduces new risks and barriers to success.

Meanwhile, Epic CEO Tim Sweeney praised the decision, claiming “total victory” on X (formerly Twitter). He followed that social post with another that announced that the Epic Games Store for Android will now be coming to the Play Store due to the verdict.

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Yuga Labs’ $9 Million Win Reversed as Court Sends NFT Battle Back to Trial https://earlybirdsinvest.com/yuga-labs-9-million-win-reversed-as-court-sends-nft-battle-back-to-trial/ https://earlybirdsinvest.com/yuga-labs-9-million-win-reversed-as-court-sends-nft-battle-back-to-trial/#respond Mon, 28 Jul 2025 01:16:19 +0000 https://earlybirdsinvest.com/yuga-labs-9-million-win-reversed-as-court-sends-nft-battle-back-to-trial/

Yuga Labs’ $9 million legal victory against artist Ryder Ripps and his business partner Jeremy Cahen has been reversed by the US Ninth Circuit Court of Appeals.

On July 23, the court decided that Yuga Labs had not yet proven that the non-fungible token (NFT) project launched by Ripps and Cahen was likely to mislead buyers. As a result, the case will return to a California district court for a full trial.

Yuga Labs co-founder Greg Solano posted on X that they “will now finish the fight in the district court”.

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Despite losing the financial award, the court confirmed that NFTs can be considered “goods” under US trademark law. That could make it easier for NFT creators to sue over copycat projects in the future.

The judges also agreed that Yuga Labs was the first to use the Bored Ape Yacht Club name in a commercial context. Solano stated that it showed Bored Ape Yacht Club NFTs are valid trademarks and called it “an important win for every NFT holder”.

The legal fight began in 2022 when Yuga Labs sued Ripps and Cahen over their NFT collection called “Ryder Ripps Bored Ape Yacht Club”. Yuga argued that the collection copied their original Bored Ape Yacht Club NFTs.

The next phase of the legal process will involve a closer look at Yuga Labs’ claims of trademark misuse and cybersquatting.

Meanwhile, a legal case targeting Dolce & Gabbana’s US division over a failed non-fungible token (NFT) venture has been dismissed. Why? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.


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