Comey Gets Grand Jury Transcripts & Texas Redistricting Blocked

19 Nov 2025 · 36 min · 20 chapters

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In short

The episode covers three legal/political stories. Topic 1: A federal judge ordered extraordinary disclosure of James Comey’s grand jury materials, citing 11 potential DOJ missteps. Guest Robert Mintz (former federal prosecutor; partner at McCarter & English) says the remedy is rare and could support dismissal or dismissal of counts.

Key claims

prosecutors may have used privileged communications; an FBI agent exposed to privilege testified as the sole witness; DOJ counsel Lindsay Halligan made “fundamental misstatements” about the Fifth Amendment (no adverse inference from Comey not testifying) and about grand jurors relying on evidence outside the record; and there’s a possible mismatch between the indictment deliberated on and the one presented in open court.

Notable examples

ARTICASE-related 2019–2020 search warrants involving Daniel Richman; Halligan’s comments to grand jurors; timing suggesting grand jurors may not have reviewed the final two-count indictment. Topic 2: Texas mid-decade congressional redistricting was blocked as racially gerrymandered; panel said use the old 2025 map for 2026 elections. Guest Ryan Attulo (covers Texas courts for Bloomberg Law). Topic 3: California’s Protecting Our Kids from Social Media Addiction Act faces First Amendment challenges by Meta/Google/YouTube; guest Colin Wacke (cybersecurity/data privacy partner at Hall Estill).

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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Introduction to Today's Episode

0:00 to 0:34

June Grosso introduces the episode's topic regarding James Comey's indictment.

“Big league reliability for any business.”

Introduction to Today's Episode

0:38 to 1:25

June Grosso introduces the episode's topic regarding James Comey's indictment.

“The Chase mobile app is available for select mobile devices.”

Judge's Condemnation of Government Actions

1:25 to 3:08

Discussion on Judge Fitzpatrick's harsh critique of the Justice Department's conduct.

“According to a judge, the Justice Department's indictment of James Comey was riddled with problems that may give the former FBI director legal grounds to have it dismissed.”

Issues with Privileged Information

3:08 to 5:05

Exploration of the implications of privileged information in Comey's case.

“But the reality is, as a federal prosecutor, that is really most of the time just a formality.”

Testimony and Evidence in Grand Jury

5:05 to 7:44

Analyzing the unusual testimony of an FBI agent and its implications.

“The judge went through a series of potential issues that he decided the defense was entitled to probe and to raise before the court as a basis to possibly dismiss the indictment.”

Misstatements of Law by Prosecutor

7:44 to 13:05

Examining the fundamental misstatements made by prosecutor Lindsay Halligan.

“In order to return indictments, prosecutors do not have to present witnesses who have firsthand knowledge about the alleged crime.”

Grand Jury Procedures and Indictment Issues

13:05 to 14:01

Discussing serious questions about the grand jury's handling of the indictment.

“Well, I think that's why you saw the opinion written by the magistrate judge to be as strongly worded and as detailed as it was.”

Grand Jury Proceedings and Comey's Defense

14:01 to 24:30

Explore the implications of grand jury transparency and procedural issues in Comey's case.

“And now there's a question based on the transcript of the proceeding as to whether or not an entirely new indictment with only the two counts that the grand jurors voted in favor of was ever presented to them.”

Grand Jury Proceedings and Comey's Defense

24:31 to 25:54

Explore the implications of grand jury transparency and procedural issues in Comey's case.

“So there's a lot of noise about AI, but time's too tight for more promises.”

Grand Jury Proceedings and Comey's Defense

26:55 to 27:13

Explore the implications of grand jury transparency and procedural issues in Comey's case.

“Rokered services by Open to the Public Investing, Inc., member FINRA and SIPC.”
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Texas Redistricting Decision

27:13 to 28:00

Discuss a recent federal judges' decision blocking Texas's mid-decade redistricting map.

“In a two-to-one vote, the panel blocked Texas from using a redrawn U.S.”

Texas Redistricting Controversy

28:00 to 30:28

Learn about the recent judicial decision on Texas redistricting and its implications.

“The panel says that the maps that Texas drew this summer racially discriminated against minority groups.”

Supreme Court Appeal Anticipation

30:28 to 31:17

Discuss the likelihood of Texas appealing the redistricting decision to the Supreme Court.

“They're not going to the intermediary Fifth Circuit.”

Supreme Court Appeal Anticipation

31:22 to 32:14

Discuss the likelihood of Texas appealing the redistricting decision to the Supreme Court.

“If you've ever sent money internationally using a traditional bank, there's a good chance you've paid more than you realized.”

Supreme Court Appeal Anticipation

33:13 to 34:23

Discuss the likelihood of Texas appealing the redistricting decision to the Supreme Court.

“Brokered services by Open to the Public Investing, Inc., member FINRA, and SIPC.”

California's Social Media Regulation Lawsuit

34:37 to 36:53

Explore the implications of California's law on social media access for minors.

“Meta, TikTok, Google, and YouTube are challenging a California law that forbids social media platforms from allowing minors to access personalized feeds without parental consent.”

Debate Over First Amendment Rights

36:53 to 39:36

Examine the arguments surrounding First Amendment rights in relation to social media algorithms.

“Is there any room in the First Amendment to prevent children from hearing things that will be harmful to them?”

Challenges of Age Verification Laws

39:36 to 42:04

Understand the complexities and challenges of implementing age verification laws for online content.

“Is there any way for California to pass a different law that would somehow escape these First Amendment objections?”

Legal Challenges Against Social Media Companies

42:04 to 43:08

Explore the ongoing lawsuits against social media companies regarding their algorithms and child safety.

“And so that's where the objection comes in, is that parents, in order to use this law, may have to disclose information they shouldn't have to disclose absent this law.”

Legal Challenges Against Social Media Companies

43:36 to 44:15

Explore the ongoing lawsuits against social media companies regarding their algorithms and child safety.

“I'm June Grosso and you're listening to Bloomberg.”
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Transcript

Automatic transcript. May contain errors.

0:00This dog salon? Operational excellence. Thanks to Genius from Global Payments. Scheduling? Personalized. Checkouts? Instant. Absolutely genius. Big league reliability for any business. That's genius. Small businesses are the pulse of every community. They bring people together, create opportunities, and drive growth. Chase for Business helps business owners like you with personalized guidance and convenient digital tools all in one place. With that guidance and your determination, you can take your business farther and help build a brighter future for your community. Learn more at chase.com slash business.

0:37Chase for Business. Make more of what's yours. The Chase mobile app is available for select mobile devices. Message and data rates may apply. JPMorgan Chase Bank, NA. Member FDIC. Copyright 2026. JPMorgan Chase and Company. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business.

1:19Let's create smarter business. IBM. This is Bloomberg Law with June Grosso from Bloomberg Radio. According to a judge, the Justice Department's indictment of James Comey was riddled with problems that may give the former FBI director legal grounds to have it dismissed. And U.S. Magistrate Judge William Fitzpatrick has ordered an extraordinary remedy, the release of all grand jury materials to the defense, due to the prospect that government misconduct may have tainted the grand jury proceedings. In a blistering assessment of the Justice Department's actions leading up to the indictment, Fitzpatrick cited 11 potential missteps, including fundamental misstatements of the law to the grand jury by the prosecutor, Lindsay Halligan, the use of potentially privileged communications during the investigation, and unexplained irregularities in the transcript of the grand jury proceedings.

2:24My guest is former federal prosecutor Robert Mintz, a partner, McCarter & English. Bob, in some ways, the judge's opinion seems like a guideline for the defense to ask for a dismissal of the indictment. He outlined the procedural and substantive irregularities that occurred before the grand jury and said they may give Comey legal grounds to have one or more of the counts dismissed. Pretty harsh, a condemnation of the government's actions. It was extremely unusual because, as you say, it's extremely rare in the first place for a judge to be reviewing conduct in front of a grand jury. The grand jury process, even though it's a very important constitutional right and a prosecutor does not have a basis to charge an individual with a federal crime if it's a felony, it's something that has to go before a grand jury and there has to be a finding of probable cause.

3:21But the reality is, as a federal prosecutor, that is really most of the time just a formality. It's extremely rare, almost unheard of for grand jurors to refuse to return an indictment when a federal prosecutor presents a case in front of a grand jury. So when you're a federal prosecutor, the last thing in the world you want is for a judge to be probing what went on in that grand jury process. That means that as a prosecutor, you're on the defense. And instead of talking about the charges that you're bringing against the defendant, you are defending your own conduct. And that's exactly what's happened here.

4:00Judge Fitzpatrick cited 11 potential missteps in the process to obtain the indictment against Comey. So let's start with the defense is challenging whether there was privileged information used. And the judge said the facts established a reasonable basis for the defense to challenge whether privileged information was used directly or indirectly by the government to prepare and present its grand jury presentation. So you have to go back a little, I guess, to explain why there's privileged information here. So what the magistrate judge was tasked with in this circumstance was to decide whether Mr.

4:40Comey had met the very high bar for a defendant to be given full access to the transcripts and recordings of a grand jury proceeding. What ended up happening here was that in addition to the reasons that Comey's lawyers had argued for access to the grand jury material, the judge found from his own review of the materials a host of new problems, new issues that could ultimately lead to the dismissal of the case. The judge went through a series of potential issues that he decided the defense was entitled to probe and to raise before the court as a basis to possibly dismiss the indictment. One of the original issues that Comey's lawyers raised as a basis for accessing the grand jury material had to do with search warrants that were executed by the Department of Justice in 2019 and 2020.

5:32four search warrants were executed by the Department of Justice in connection with an entirely separate earlier investigation known as ARTICASE, which took place during President Trump's first presidency and had to do with the potential leaking of information to the media about ongoing investigations by the FBI. And the search warrants were focused on a Columbia University law professor, Daniel Richman, who was a friend of Mr. Comey's, but who would also end up representing him as his lawyer for some period of time, and that created the question of whether or not the information might have been covered by the attorney-client privilege.

6:12The judge here raised a number of issues as to whether or not there could have been a violation of Mr. Comey's rights and whether or not privileged information, in other words, communications between Mr. Comey and Mr. Richmond when Mr. Richmond was acting as his lawyer, might have seeped into the grand jury presentation, and that would have been entirely improper and would have tainted the presentation and could potentially be a basis to dismiss the indictment. Yeah, the judge said that the decision to allow an FBI agent, and there was only one witness in the grand jury, it was an FBI agent. So the decision to allow an agent who was exposed to potentially privileged information to testify before a grand jury is highly irregular and a radical departure from past DOJ practice.

7:01Yeah, and what the judge meant by that is there are circumstances when the issue of privilege does arise, and typically it will happen if there is a search warrant that takes place involving an attorney. You know by definition that there may be communications between an attorney and his client when you search an attorney's office. And so what prosecutors do on a routine basis is they set up a separate team of lawyers, lawyers who are not in any way involved in the prosecution, who will go through that material to remove what could be potentially privileged information so that the trial team, the prosecuting team, is not tainted by having access to information that they should not be given access to.

7:46What happened here was that one of the FBI agents, who by the government's own admission, had been given a briefing, at least, on some of the privileged information, that was the sole witness who appeared in front of the grand jury in order to return the indictment. In order to return indictments, prosecutors do not have to present witnesses who have firsthand knowledge about the alleged crime. They can and often do rely on one agent who is allowed to summarize and present hearsay evidence to the grand jury to summarize all of the government's case, including all the interviews that might have taken place, reviews of documents, basically sum up for the jury all of the government's case through the testimony of a single witness.

8:33Here, what the judge found potentially problematic was that that single witness was somebody who had access to privileged information. And the question is, did any of that information either directly or indirectly seep into the presentation before the grand jury? If that happened, it was improper and could be a serious problem for the government. I've been talking to former federal prosecutor Robert Mintz, a partner at McCarter in English. So, Bob, the prosecutor here, the interim U.S. attorney, Lindsay Halligan, was Trump's former personal lawyer, had never been a prosecutor before, and she was hastily installed in the position.

9:14She presented the case to the grand jury by herself. She was the only one in the room with the grand jurors because the experienced prosecutors in the office didn't want to have anything to do with this indictment. And Judge Fitzpatrick found that two different comments Halligan made to the grand jurors represented fundamental misstatements of the law. And her exact comments were redacted from the judge's order. But it appears that she suggested to the grand jury that the fact that Comey didn't testify in his defense should be interpreted as a sign of guilt. I find that stunning because any lawyer, even a first-year law student, should know that a defendant doesn't have to testify.

10:01It's a right guaranteed by the Fifth Amendment, and no inference can be drawn from that. Well, that's exactly right. And the magistrate judge described these as, quote, fundamental misstatements of law by the prosecutor in front of the grand jury. And one of the issues that he identified was this Fifth Amendment right issue. Apparently, during the course of the grand jury and presentation, a grand juror raised questions, as grand jurors often do, to the prosecutor. And the prosecutor has to respond with the proper law in order to give the grand jurors the framework by which to consider whether or not to return an indictment.

10:40Here, apparently, a grand juror asked a question. And as you say, the exact response has been redacted. But according to the magistrate judge, it suggested that Mr. Comey may have had a burden to explain away the government's evidence. In other words, the inference was that the burden shifted to Mr. Comey to have to explain why he did what he did when, in fact, under the Fifth Amendment, a defendant has no obligation whatsoever to testify. And the fact that they choose not to testify cannot be used against him. And more fundamentally, in a criminal prosecution, the burden never shifts to the defense.

11:20It's always the prosecution's burden to prove its case beyond a reasonable doubt. So any suggestion that Mr. Comey's decision not to testify, not to explain away his conduct, could somehow be used by grand jurors to infer that he committed a crime would have been improper. The judge also noted that Ms. Halligan may have suggested to the grand jury that they did not have to rely only on the record that was presented to them during the grand jury presentation in order to reach a finding of whether or not there was probable cause, but that they could assume and they could be assured of the fact that the government had even more evidence, perhaps better evidence, than was presented to them during the presentation that could be used at trial.

12:07and therefore that the case was even stronger than the evidence presented to them during the grand jury proceeding. If that was done, that too would be entirely improper. The grand jury has to make a decision as to whether or not there is probable cause based solely on the evidence presented to them during the grand jury proceeding. It's really no different than a trial in which jurors have to make a determination as to whether or not the government has met its burden of proof beyond a reasonable doubt, based solely on the evidence that's presented to them during the trial. They can't rely on anything outside of the record during the trial proceeding.

12:43The same holds true for grand jurors and for prosecutors to suggest that there is other more powerful evidence that they should consider but has not been presented to them would be entirely improper. I mean, her comments basically come down to a defendant has to testify before a grand jury. And trust me, grand jurors, we have a lot more evidence that will prove his guilt. But we're not showing it to you now. Well, I think that's why you saw the opinion written by the magistrate judge to be as strongly worded and as detailed as it was. It was a 24-page opinion that went through not only the issues that Mr.

13:24Comey's lawyers had raised in order to try to gain access to the grand jury transcripts, but also a litany of other issues that he discovered when he reviewed in camera those grand jury transcripts. And he raised serious questions in his mind, I believe, as to whether or not there were serious constitutional errors in the presentation. Not only the Fifth Amendment question, not only the question that there was evidence outside of the grand jury's purview that they should consider, even the way the grand jury returned the indictment. In this case, the original indictment presented to the grand jurors was a three-count indictment.

14:00When the grand jurors went back to deliberate, they chose not to return a true bill, which means they voted not in favor of one of the three counts. And now there's a question based on the transcript of the proceeding as to whether or not an entirely new indictment with only the two counts that the grand jurors voted in favor of was ever presented to them. If that did not happen, if the grand jurors did not deliberate on the exact indictment that was ultimately presented to the court, that is another issue that could be very problematic. I was impressed that the magistrate judge figured out by the timing of what happened that he thinks the grand jurors did not review the indictment that was finally presented in open court.

14:46No, that's exactly right. The judge wrote if the prosecutor is mistaken about the time she received notification of the grand jury's vote on the original indictment and this procedure did take place, then the transcript and audio recording provided to the court are incomplete. On the other hand, if this procedure did not take place, then the court is in what the judge described as uncharted legal territory in that the indictment returned in open court was not the same charging document presented to and deliberated upon by the grand jury. Either way, the judge was not satisfied with the explanation that prosecutors gave about that process.

15:24And that's why the magistrate judge, at least, has decided to open up all of this grand jury information to the defense, which is a huge benefit to the defense and will likely result in even more motions than the original motions filed by Mr. Comey's defense team. Bob, I was wondering, so the judge said that all the grand jury materials that the government filed under seal have to be made available to Comey's lawyers and also the audio recording of the grand jury proceedings. Could the audio recording reveal things that are not in the transcript? Yeah, that's certainly possible. I mean, the judge here decided to go full transparency in that he is giving everything that was presented to him by the government over to the defense.

16:12And that is something that you rarely see. As I said, this is something that is a prosecutor's nightmare. The case should not be about the prosecutor's conduct right out of the gate. It should be about the defendant's conduct and about whether or not the government can prove that the defendant committed a crime beyond a reasonable doubt. The probe into the conduct by the government is exactly where you want to be if you're on the defense side, but it's the worst place you can possibly be as a prosecutor. So federal prosecutors, within a few hours, filed an emergency request to the judge in the case.

16:48We're talking about the magistrate judge's order saying that the magistrate judge's new order is contrary to law and also that he may have misinterpreted some facts. Well, I think what's happened here is magistrate judges are appointed by the court that they serve in and their decisions generally can be appealed to the district court judge handling the case. And so the government, not surprisingly, immediately sought a stay, and the district court judge, I think, wisely granted it so that he can review everything that went on and review not only what went on in the grand jury, but carefully review the 24-page decision that was issued by the magistrate judge.

17:30And he will make his own decisions about whether or not this grand jury material should be turned over. It's so important and it's so unusual that it's not at all surprising to me that the district court judge wants to weigh in on this before a final decision is made. The magistrate judge works in tandem with the district court judge. So Judge McNamuff probably knows what the magistrate judge was doing. Sure. What happens is that magistrate judges are selected by the court as opposed to district court judges, which are nominated by the president and only appointed with the advice and consent of the Senate.

18:06Magistrate judges essentially work with specific district court judges, and generally on the civil side, they handle a lot of the discovery matters that lead up to trial. On the criminal side, they hear initial hearings with regard to bail and issues of that sort, but they do work hand in glove with the judges that they are assigned to. So typically you will see a district court judge agreeing with much of what their magistrate judge did. But in this case, I think there's no question that Judge Nakmanoff will take a separate look at what happened here because it is so unusual and make his own decision about whether the grand jury material should be turned over in total as was ordered by the magistrate judge.

18:52So Judge Nakmanoff put Fitzpatrick's order on hold. He gave the Justice Department until 5 p.m. tomorrow to file its full brief. And then Comey's side has until 5 p.m. Friday to respond. So now yet another judge is involved in this case, and that's the judge considering whether Lindsey Halligan was lawfully appointed. Let's once again explain what the defense's argument about Halligan's appointment. So in this case, the federal judge is actually a judge from South Carolina as opposed to the Eastern District of Virginia. Because the question before the court is whether or not the U.S. attorney for the Eastern District of Virginia has been properly appointed.

19:36And the decision was made by the circuit court that it would be best to have a judge not in that judicial district making this decision. So the judge from South Carolina, Judge Curry, is looking at the convoluted process by which Lindsey Halligan was appointed as the interim U.S. attorney for the Eastern District of Virginia. There had been a career prosecutor who was appointed by President Trump to serve on an interim basis. That interim basis lasts 120 days by appointment of the president. After that time period, the judges in the district can then extend that appointment. And that's exactly what happened here with that career prosecutor, Eric Siebert.

20:19The attorney general then fired Mr. Siebert and appointed a new prosecutor, Lindsay Halligan, for a new 120-day period. And the question is whether or not the executive branch can continue with these 120-day interim appointments sort of ad infinitum or whether they can do it only one time. And after that time, it's up to the district court judges to appoint the U.S. attorney. The statute is actually not clear on the process. It doesn't explicitly say that that 120-day appointment can happen only once. But the argument by the defense here is if the court were to accept the government's argument, then the president could really get around the advice and consent of the Senate, which is required for a U.S.

21:05attorney by simply doing a series of 120-day appointments over and over again, and that could not be what Congress intended. The Justice Department's response to the argument that Lindsey Halligan was not lawfully appointed dismissed any missteps here, saying the administration may have made, quote, at best a paperwork error, and also that afterwards the grand jury presentations have been reviewed and ratified by Attorney General Pam Bondi. The Justice Department is trying to say, even if we made a mistake, Pam Bondi looked at it later and approved it. But the judge did not seem too convinced by that.

21:47These are all very unusual questions and very unusual proceedings that there really is no prior precedent for. So it's going to be interesting to see how the courts treat not only her appointment, but the efforts by the Attorney General in an effort to prop up Halligan's position, Attorney General Bondi designated Halligan as a special attorney for the Justice Department assigned to oversee cases against former FBI Director James Comey and New York Attorney General Letitia James. So what you're seeing is the Department of Justice kind of struggling here to not only prop up the position of Lindsey Halligan, but also to try to convince the court that any errors that were made in connection with obtaining the indictment against James Comey was more of a paperwork issue and nothing that should result in dismissal of the indictment.

22:37If she decides that Lindsay Halligan was not qualified and there was no ratification, so to speak, by Attorney General Pam Bondi, does the case against Comey then go out the window because of the statute of limitations? One of the interesting questions that will arise in the event that the court were to determine that Lindsay Halligan's appointment was improper is whether or not the government will have the ability to re-indict the case. The case was indicted right at the very end of the five-year statute of limitations. That's why Lindsay Halligan rushed into the grand jury on very short notice and made this presentation literally days before the five-year statute of limitations was set to expire.

23:22If her appointment is deemed to be improper, that would mean that the indictment itself is procedurally flawed because somebody who was not properly appointed as a U.S. attorney was the only person who presented the case before the grand jury. The defense will no doubt argue that the government cannot seek to reindict the case because the statute of limitations will have since expired. But there is a statute that says if a case is dismissed on procedural grounds, which may include potentially a situation like this, where the attorney who presented the case in front of the grand jury was not appropriately appointed, that the government has a six-month grace period to refile that new indictment, even though the original five-year statute of limitations has passed.

24:09That will be something that will be front and center if Lindsey Halligan's appointment is ultimately ruled to be improper, and the government attempts to refile that indictment outside the five-year statute of limitations. This case raises so many novel questions. Thanks so much for exploring them with us, Bob. That's Robert Mintz of McCarter in English. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions.

24:50Not noise, proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business, IBM. Wise is the smart way to manage the currencies you need around the globe. If you've ever sent money internationally using a traditional bank, there's a good chance you've paid more than you realized. Hidden fees, exchange rate markups, and extra charges can quietly add up before your money even arrives. There's a better way. Try Wise. Wise uses the exchange rate you'd usually find on Google, helping you avoid the unwelcome surprises that often come with international transfers.

25:27Whether you're sending money to family overseas, spending while on your holiday abroad, or paying bills across borders, Wise makes moving money simple, transparent, and straightforward. WISE offers 24-7 customer service and runs over 7 million daily checks to spot and stop fraud. And most transfers happen in under 20 seconds, which means your money arrives in less time than you've been listening to me. Join millions, saving billions. Be smart. Get WISE. Visit WISE.com or download the WISE app today. T's and C's apply.

26:02Support for the show comes from Public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like, if the VIX hits 25, buy a put option on the S &P 500. Or, if my cash balance goes above$20 ,000, move the excess into my direct index. You approve the workflow and your agent handles the risk. Monitoring the market, watching for your conditions, and executing your strategies exactly as defined.

26:41An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com slash market and fund your account in five minutes or less. That's public.com slash market. Paid for by public investing. Rokered services by Open to the Public Investing, Inc., member FINRA and SIPC. Advisory services by Public Advisors, LLC, SEC Registered Advisor. Complete disclosures available at public.com slash disclosures. Today, a panel of federal judges shot down Texas's rare mid-decade redistricting, delivering the loss to President Trump.

27:22In a two-to-one vote, the panel blocked Texas from using a redrawn U.S. House map, saying that substantial evidence shows that Texas racially gerrymandered the 2025 map. A Trump appointee and a Biden appointee were in the majority and a Reagan appointee in the minority. This closes a path for Republicans to gain five House seats in next year's midterm elections unless the Supreme Court steps in and reverses the decision. But the timeline is tight. Joining me is Ryan Otulo, who covers Texas courts for Bloomberg Law. Ryan, tell us why the judges blocked the new map. The panel says that the maps that Texas drew this summer racially discriminated against minority groups.

28:11It was a decision that criticized heavily a letter from the Department of Justice that said that the existing maps that Texas had been using were racially discriminatory and therefore needed to be redrawn. The majority, in today's opinion, strongly disagreed with that letter and shot it down. And they said, Texas, for the upcoming congressional elections in 2026, you need to use the old maps, not the ones you just passed. Explain what happened at the two-week trial. Last month in El Paso, Texas, there was a trial challenging the maps that Texas used on racial gerrymandering grounds. Texas was in a tough spot because initially they said that we need to redraw these for racial reasons based on that Department of Justice letter.

Read the full transcript

29:09Well, that's tougher to defend than just saying what they ended up saying is redrew these strictly for partisan gain, which is a very unapologetic position. But you can say, look, we wanted five more seats for the Republican Party so that we can keep Congress after the midterms. That's what they said. And the majority of judges on the panels disagreed. They said, no, it was redrawn for racial reasons. And which districts were redrawn? Largely urban districts, Dallas, Austin, one near Houston, there were five total that the Republican lawmakers in Texas and President Trump identified as being able to flip from solidly blue to solidly red.

29:54And you saw a scramble there. Democratic lawmakers getting congressional lawmakers getting drawn out of their seats. And what are we going to do? I will run for reelection if the maps are struck down or I will retire if they're not. So there's been a lot of relief from House Democrats today, not knowing whether they were going to be able to run for their House seat. Now they will be. I assume that Texas is going to appeal this to the Supreme Court since it's a redistricting matter. I would guess they're working on that as we speak, June. They're going to go straight to the Supreme Court. They're not going to the intermediary Fifth Circuit.

30:33I think we'll know a little more once they file that. But Attorney General Ken Paxton and Governor Greg Abbott, who used to be the attorney general in Texas before he became governor, both came out with statements saying we strongly disagree with this decision and we're going straight to the Supreme Court. There is a time crunch here because the deadline for candidates to file for the congressional primaries is coming up in a couple weeks, December 8th, I believe it is. So the Supreme Court may have to act quick or maybe they extend that deadline, you know, anyone's guess at this point. But this is something that will probably move pretty quickly.

31:15Very quickly, I'm sure. Thanks so much, Ryan. That's Bloomberg Law's Ryan Attulo. Wise is the smart way to manage the currencies you need around the globe. If you've ever sent money internationally using a traditional bank, there's a good chance you've paid more than you realized. Hidden fees, exchange rate markups, and extra charges can quietly add up before your money even arrives. There's a better way. Try Wise. Wise uses the exchange rate you'd usually find on Google, helping you avoid the unwelcome surprises that often come with international transfers. Whether you're sending money to family overseas, spending while on your holiday abroad, or paying bills across borders, Wise makes moving money simple, transparent, and straightforward.

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34:19Chase Sapphire Reserve for Business. It's the card that gives back all you put in. Learn more at chase.com forward slash reserve business. Chase for Business. Make more of what's yours. Accounts subject to credit approval. Restrictions and limitations apply. Cards are issued by JPMorgan Chase Bank N.A., member FDIC. Meta, TikTok, Google, and YouTube are challenging a California law that forbids social media platforms from allowing minors to access personalized feeds without parental consent. They say it violates their First Amendment rights. Joining me is Colin Wacke, a cybersecurity and data privacy partner at Hall Estill.

35:01Colin, tell us about this law, California's Protecting Our Kids from Social Media Addiction Act. Yeah, so this is a new law that requires several things, one of which is, for example, that individuals provide proof that they are over the age of 18 or obtain parental consent if you're a minor before you get curated algorithms. It also requires tech companies to do things like set default settings on the amount of time that children see curated algorithms, things along those lines. Will you explain exactly what a curated algorithm is? Yes. So if I go on YouTube and I don't log in as Colin Walkie, they generally speaking don't know who I am.

35:46And so I see a feed, but the feed isn't tailored to me or my desires. But the moment that I plug in that I'm Colin Walkie and here's my Google account access, it now knows, hey, Colin likes videos of dogs and ponies. And so that's what it shows me. And so these curated algorithms, in theory, get individuals more addicted than they otherwise would because they're seeing more of what they want to see. What are the social media platforms arguing here? So this is actually a lawsuit that is a subsequent lawsuit from an earlier one that was brought by a trade association called NetChoice. And YouTube and Meta and Google are all members of NetChoice.

36:25And in that case, the Ninth Circuit said, yeah, this law might violate the First Amendment because even children have a right to freedom of speech and freedom of expression. And so this very well may violate the First Amendment. But you as a trade association do not have standing to make these arguments. And so that decision was issued last month. And now we have Google and Meta coming in and going, OK, here we are. We have standing. Now, we want you to know that this violates the First Amendment because even children have freedom of speech and we have the right to curate these algorithms for children as freedom of expression.

37:04Is there any room in the First Amendment to prevent children from hearing things that will be harmful to them? There certainly is. Right. So we have regulations that say you can't view pornographic material until you're 18 or 21 years of age. And so there certainly is precedent for that. The problem comes, though, with regard to how broad is this law? This law would cover not just pornographic images that YouTube may show, but it would also cover content that is perfectly fine for teenagers to view. And so therefore, it is an overly broad law, according to Google and Meta and YouTube. The state AG's pointing to its preliminary win in defense of the law.

37:49Tell us about the Ninth Circuit's holding. Yes. The Ninth Circuit essentially said that you as a trade association have not demonstrated a record where when you apply this law to a particular algorithm, it results in something being overly broad. So, for example, they didn't show that Google's algorithm applied to both pornographic material and material that's acceptable to teenagers. Why? Because that wasn't the argument they were making. And so the Ninth Circuit said, hey, if you have a record that can actually show to us that Google's algorithm covers both of these things, then maybe you have a point.

38:27And so as a result, the trade association lost basically on a procedural issue, not so much on a substantive issue. Is this a tough argument then to make to protect the laws? Who has the tougher argument, the state AG or the Internet companies? I certainly just think it depends on who you ask. The AG is going to say that the tech companies do all day long. But unfortunately, I think that the tech companies, because of the way we have interpreted the First Amendment and the scope and the breadth of the information that that covers, I unfortunately think that they will ultimately prevail in this matter.

39:00It's hard for me to think of a single age verification law that has been upheld of recent memory. But the other side of it, too, is, you know, the thing is, is that these things are addictive, not just because of the algorithms showing you curated materials. The phones themselves, the pixels, the brightness of the screens, the automatic responses, irrespective of the fact that the responses you don't want. That's what makes these things addictive. They're much more like casinos. Right. So it's not even necessarily that we need to address the algorithms. There's so many other things that we could address that would not run afoul of the First Amendment that could be taken advantage of.

39:39Is there any way for California to pass a different law that would somehow escape these First Amendment objections? That's the thing is that it becomes very difficult until the court is willing to interpret algorithms as something more akin to pornography, as something more akin to showing an actual harm to children. And I think that's where the AG and the law stems from. It stems from the fact that we know these curated algorithms and algorithms in general do not help children in their mental health. So let's do something about it. And unfortunately, the courts have not treated this in the same way they have other materials like pornography.

40:20And once it gets to that point in time, you're talking about something totally different. And I think courts may change their mind. But right now, I don't see a good way for us to win on a free speech ground in a regulation like this. In light of all the horrific stories we've heard about kids being addicted to social media, I'm a little surprised that these companies are taking this tactic because it makes them look like they're contributing to the problem instead of helping to solve the problem. Well, they're actually talking on both sides of their mouth at once. So on the one hand, what they are actually saying is, is we actually curate these feeds in the first place for kids to make sure that they're safe.

41:01We already limit the amount of time that we show them curated feeds, that we're already being proactive. That's the first thing they say. But on the flip side of that coin, they're also saying, let us continue to show these kids this because that's the best way to get their attention. It's the best way for us to make money. You know, you think about it. Think about the 1980s and the 1990s when theaters used to kick kids out of R-rated movies because they weren't old enough to do it. Right. I'm confident those movie theaters would love to have had those kids and their dollars in their pockets. But they made a rule and said, we're not going to do that.

41:31These tech companies have not made that rule. They don't care. They want the profits. And Colin, how does this work? Because my daughter is long grown up. How does it work? Do parents have to click on something to give their consent? So that's part of the complaint is that what would have to happen is that a parent would have to upload an ID and disclose personal information about that parent that they shouldn't have to do in order to access freedom of speech content. Right. And so, for example, that's part of the problem with age verification laws for pornography. If I am 25 years of age, why should I have to prove to you that I am this age in order to engage in that conduct online?

42:12And so that's where the objection comes in, is that parents, in order to use this law, may have to disclose information they shouldn't have to disclose absent this law. What's the status of the lawsuits filed by parents against social media companies? Yeah. So the most recent lawsuits specifically with regard to AI, those are still in existence, to my knowledge. I'm not aware of any that have been dismissed yet. I am not aware of any pending ones. I mean, there are mass tort litigation, I think, going on against some social media companies, but I'm not aware of the current status of those. And that's just it, is that the courts, if they're not going to learn how to recategorize addictive algorithms to address it under the First Amendment, then they need to rethink how we can litigate claims when companies negligently create these algorithms that hurt ourselves and our children.

43:04I don't know what recourse parents have besides the courts. Thanks so much, Colin. That's Colin Walkie, cybersecurity and data privacy partner at Hall Estill. And that's it for this edition of the Bloomberg Law Show. Remember, you can always get the latest legal news on our Bloomberg Law podcast. You can find them on Apple Podcasts, Spotify and at www.bloomberg.com slash podcast slash law. And remember to tune into the Bloomberg Law Show every weeknight at 10 p.m. Wall Street time. I'm June Grosso and you're listening to Bloomberg.

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From the publisher

Former federal prosecutor Robert Mintz, a partner at McCarter & English, discusses a judge finding that the Justice Department’s indictment of former FBI Director James Comey, was riddled with problems. Then Ryan Autullo, Bloomberg Law reporter, discusses a court blocking Texas mid-decade redistricting. And Colin Walke, cybersecurity and data privacy partner at Hall Estill discusses the tech giants suing California over its social media access law. June Grasso hosts.

See omnystudio.com/listener for privacy information.

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