Day: April 13, 2022

Russian users of Netflix NFLX.O have launched a class action lawsuit against the streaming giant for leaving the Russian market, demanding 60 million roubles ($726,000) in compensation, the RIA news agency reported on Wednesday. 

Netflix Inc said in March that it suspended its service in Russia and had temporarily stopped all future projects and acquisitions in the country as it assessed the impact of Moscow’s invasion of Ukraine.

“Today, a law firm representing the interests of Netflix users filed a class action lawsuit against the American Netflix service with the Khamovnichesky District Court of Moscow,” RIA cited law firm Chernyshov, Lukoyanov & Partners as saying. 

“The reason for the lawsuit was a violation of Russian users’ rights due to Netflix’s unilateral refusal to provide services in Russia.” 

Netflix did not immediately respond to a request for comment. 

Scores of foreign companies have announced temporary shutdowns of stores and factories in Russia or said they were leaving for good since Moscow began what it calls “a special military operation” in Ukraine on February 24. Ukraine and the West say Russia launched an unprovoked war of aggression against its neighbor. 

($1 = 82.62 roubles) 
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A former energy executive in California who took part in $1 billion solar power fraud that bilked Warren Buffett’s company and many others was sentenced Tuesday to six years in federal prison and ordered to pay $624 million in restitution.

Robert A. Karmann, 55, of Clayton was the chief financial officer for DC Solar, a company based in Benicia in the San Francisco Bay Area that sold mobile solar generator units mounted on trailers.

The company marketed the generators between 2011 and 2018 as being able to provide emergency power for cellphone companies or to provide lighting at sporting and other events.

But the company executives started telling investors they could benefit from federal tax credits by buying the generators and leasing them back to DC Solar, which would then provide them to other companies for their use, prosecutors said.

The generators never provided much income, and prosecutors say the company ran a Ponzi scheme, in which early investors were paid with funds from later investors.

The company eventually stopped building the mobile generators altogether, and prosecutors say a least half the company’s claimed 17,000 generators didn’t really exist.

Among those suckered by the business were Buffett’s Berkshire Hathaway Inc.

DC Solar founder Jeff Carpoff was sentenced last November to 30 years in prison and ordered to pay $790.6 million in restitution for conspiracy to commit wire fraud and money laundering.

His wife, Paulette Carpoff, 47, has pleaded guilty to federal charges and will be sentenced in May.

Prosecutors said the Carpoffs used the money to buy and invest in 32 properties, more than 150 luxury cars, a subscription to a private jet service, a semipro baseball team, a NASCAR race car sponsorship and a suite at the new Las Vegas Raiders stadium.

One other man was sentenced to three years in prison last year and three others pleaded guilty to criminal charges and await sentencing.
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Elon Musk’s huge Twitter investment took a new twist Tuesday with the filing of a lawsuit alleging that the colorful billionaire illegally delayed disclosing his stake in the social media company so he could buy more shares at lower prices.

The complaint in New York federal court accuses Musk of violating a regulatory deadline to reveal he had accumulated a stake of at least 5%. Instead, according to the complaint, Musk didn’t disclose his position in Twitter until he’d almost doubled his stake to more than 9%. The lawsuit alleges that the strategy hurt less-wealthy investors who sold shares in the San Francisco company in the nearly two weeks before Musk acknowledged holding a major stake.

Musk’s regulatory filings show that he bought a little more than 620,000 shares at $36.83 apiece on Jan. 31 and then continued to accumulate more shares on nearly every single trading day through April 1. Musk, best known as CEO of the electric car maker Tesla, held 73.1 million Twitter shares as of the most recent count Monday. That represents a 9.1% stake in Twitter.

The lawsuit alleges that by March 14, Musk’s stake in Twitter had reached a 5% threshold that required him to publicly disclose his holdings under U.S. securities law by March 24. Musk didn’t make the required disclosure until April 4.

That revelation caused Twitter’s stock to soar 27% from its April 1 close to nearly $50 by the end of April 4’s trading, depriving investors who sold shares before Musk’s improperly delayed disclosure the chance to realize significant gains, according to the lawsuit filed on behalf of an investor named Marc Bain Rasella. Musk, meanwhile, was able to continue to buy shares that traded in prices ranging from $37.69 to $40.96.

The lawsuit is seeking to be certified as a class action representing Twitter shareholders who sold shares between March 24 and April 4, a process that could take a year or more.

Musk spent about $2.6 billion on Twitter stock — a fraction of his estimated wealth of $265 billion, the largest individual fortune in the world. In a regulatory filing Monday, Musk disclosed he may increase his stake after backing out of an agreement reached last week to join Twitter’s board of directors.

Jacob Walker, one of the lawyers that filed the lawsuit against Musk, told The Associated Press that he hadn’t reached out to the Securities and Exchange Commission about Musk’s alleged violations about the disclosure of his Twitter stake. “I assume the SEC is well aware of what he did,” Walker said.

An SEC spokesperson declined to comment.

The SEC and Musk have been wrangling in court since 2018 when Musk and Tesla agreed to pay a $40 million fine t o settle allegations that he used his Twitter account to mislead investors about a potential buyout of the electric car company that never materialized. As part of that deal, Musk was supposed to obtain legal approval for his tweets about information that could affect Tesla’s stock price — a provision that regulators contend he has occasionally violated and that he now argues unfairly muzzles him.

Musk didn’t immediately respond to a request for comment posted on Twitter, where he often shares his opinion and thoughts. Alex Spiro, a New York lawyer representing Musk in his ongoing dispute with the SEC, also didn’t immediately respond to a query from The Associated Press. 
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The pandemic plunged 77 million more people into extreme poverty last year and many developing countries can’t recover because of the crippling cost of debt repayments — and that was before the added impact of the war in Ukraine, a U.N. report said Tuesday.

The report said rich countries could support their recovery from pandemic slumps with record amounts borrowed at ultra-low interest rates. But the poorest countries spent billions of dollars servicing their debts and faced much higher borrowing costs, preventing them from spending on improving education and health care, protecting the environment and reducing inequality.

According to the U.N., 812 million people lived in extreme poverty — on $1.90 a day or less — in 2019, and by 2021 amid the pandemic the number had risen to 889 million.

The report is on financing to achieve U.N. development goals for 2030, including ending poverty, ensuring quality education for all young people and achieving gender equality.

U.N. Deputy Secretary-General Amina Mohammed said at a news conference that the effort “is coming at a critical moment for humanity, adding to the compounding crises of climate assaults on our natural systems and the protracted COVID-19 pandemic.”

Added to this, she said, is the global impact of the war in Ukraine. A U.N. analysis indicates “1.7 billion people are faced with exposure to spiking food, energy and fertilizer costs as a result of the war in Ukraine,” Mohammed said.

The report estimates that GDP per capita in 20% of developing countries will not return to pre-2019 levels by the end of 2023, even before absorbing the impact of Russia’s war in Ukraine.

It says the poorest developing countries, on average, pay 14% of their revenue for interest on their debts, with many forced to cut budgets for education, infrastructure and capital spending as a result of the pandemic. Rich developed countries pay only 3.5%, it says.

The war in Ukraine will exacerbate these challenges, the report said, and it will also bring higher energy and commodity prices, renewed supply chain disruptions, higher inflation, lower growth and increased volatility in financial markets.

Mohammed said “it would be a tragedy” if rich donor nations increased military expenditures as a result of the war and cut aid to developing countries and reduced efforts to address the climate crisis.

The U.N. already was “off track” in efforts to reach the U.N. development goals before the pandemic hit and brought new problems, she said. Now, the war and its impact will set these efforts back again, “so the big message is that we need more resources,” she said.

“There is no excuse for inaction at this defining moment of collective responsibility, to ensure hundreds of millions of people are lifted out of hunger and poverty,” Mohammed said. “We must invest in access for decent and green jobs, social protection, health care and education leaving no one behind.”

The report’s recommendations include speeding up debt relief and expanding eligibility to highly indebted middle-income countries, aligning the international tax system to address such issues as inequality in availability of coronavirus vaccines and access to medical products, accelerating investment in sustainable energy, and improving information sharing.

The report was produced by the U.N. Department of Economic and Social Affairs in collaboration with more than 60 international agencies, including the U.N. system and international financial institutions. 
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2021 was the deadliest year in U.S. history, and new data and research are offering more insights into how it got that bad. 

The main reason for the increase in deaths? COVID-19, said Robert Anderson, who oversees the Centers for Disease Control and Prevention’s work on death statistics. 

The agency this month quietly updated its provisional death tally. It showed there were 3.465 million deaths last year, or about 80,000 more than 2020’s record-setting total. 

Early last year, some experts were optimistic that 2021 would not be as bad as the first year of the pandemic — partly because effective COVID-19 vaccines had finally become available. 

“We were wrong, unfortunately,” said Noreen Goldman, a Princeton University researcher. 

COVID-19 deaths rose in 2021 — to more than 415,000, up from 351,000 the year before — as new coronavirus variants emerged and an unexpectedly large number of Americans refused to get vaccinated or were hesitant to wear masks, experts said. 

The coronavirus is not solely to blame. Preliminary CDC data also shows the crude death rate for cancer rose slightly, and rates continued to increase for diabetes, chronic liver disease and stroke. 

Overdose deaths

Drug overdose deaths also continued to rise. The CDC does not yet have a tally for 2021 overdose deaths, because it can take weeks of lab work and investigation to identify them. But provisional data through October suggests the nation is on track to see at least 105,000 overdose deaths in 2021 — up from 93,000 the year before. 

New research released Tuesday showed a particularly large jump in overdose deaths among 14- to 18-year-olds. 

Adolescent overdose death counts were fairly constant for most of the last decade, at around 500 a year, according to the paper published by the Journal of the American Medical Association. They almost doubled in 2020, to 954, and the researchers estimated that the total hit nearly 1,150 last year. 

Joseph Friedman, a UCLA researcher who was the paper’s lead author, called the spike “unprecedented.” 

Those teen overdose deaths were only around 1% of the U.S. total. But adolescents experienced a greater relative increase than the overall population, even though surveys suggest drug use among teens is down. 

Experts attributed the spike to fentanyl, a highly lethal drug that has been cut into heroin for several years. More recently it’s also been pressed into counterfeit pills resembling prescription drugs that teens sometimes abuse. 

The total number of U.S. deaths often increases year to year as the U.S. population grows. But 2020 and 2021 saw extraordinary jumps in death numbers and rates, due largely to the pandemic. 

Life expectancy

Those national death trends affect life expectancy — an estimate of the average number of years a baby born in a given year might expect to live. 

With rare exceptions, U.S. life expectancy has reliably inched up year after year. But the CDC’s life expectancy estimate for 2020 was about 77 years — more than a year and a half lower than what it was in 2019. 

The CDC has not yet reported its calculation for 2021. But Goldman and some other researchers have been making their own estimates, presented in papers that have not yet been published in peer-reviewed journals. 

Those researchers think U.S. life expectancy dropped another five or six months in 2021 — putting it back to where it was 20 years ago. 

A loss of more than two years of life expectancy over the last two years “is mammoth,” Goldman said. 

One study looked at death data in the U.S. and 19 other high-income countries. The U.S. fared the worst. 

“What happened in the U.S. is less about the variants than the levels of resistance to vaccination and the public’s rejection of practices, such as masking and mandates, to reduce viral transmission,” one of the study’s authors, Dr. Steven Woolf of Virginia Commonwealth University, said in a statement. 

Some experts are skeptical that life expectancy will quickly bounce back. They worry about long-term complications of COVID-19 that may hasten the deaths of people with chronic health problems. 

Preliminary — and incomplete — CDC data suggest there were at least 805,000 U.S. deaths in about the first three months of this year. That’s well below the same period last year, but higher than the comparable period in 2020. 

“We may end up with a ‘new normal’ that’s a little higher than it was before,” Anderson said.

 
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