LEGAL

LGBTriumph

Yesterday, the Supreme Court issued a historic decision on workplace protections for LGBTQ workers. It ruled 6–3 that discrimination on the basis of sexual orientation and gender identity is illegal under a Civil Rights-era law. 

The backstory: Some states have passed laws prohibiting LGBTQ employment discrimination, but there was no protection at the federal level. Over half of the U.S.’ 8 million LGBTQ workers live in states that hadn't passed protections.

Until yesterday

The court took up three cases of alleged employment discrimination—two involving gay men and one involving a transgender woman—where plaintiffs claimed to have been fired on the basis of their LGBTQ identities. 

All three claimed protection under Title VII of the 1964 Civil Rights Act. That law explicitly bars discrimination “on the basis of sex.” The question for the justices was whether that phrase just applies to biological sex or extends to sexual orientation and gender identity. 

• The majority decided...all of the above. “An employer who fires an individual for being homosexual or transgender fires that person for traits or actions it wouldn’t have questioned in members of a different sex,” wrote Justice Neil Gorsuch for the majority opinion, which included Chief Justice John Roberts and the court’s four left-leaning justices. 
• Justice Brett Kavanaugh wrote in a dissent that the issue should have been settled by Congress, not the Supreme Court, and Justice Samuel Alito argued the law only refers to biological sex. 

Bottom line: Pick your news cliché—this is a landmark, major, historic victory for the LGBTQ rights movement. And it was an unlikely one given the court’s conservative trajectory since President Trump appointed Justices Kavanaugh and Gorsuch.

ANTITRUST

Jeff Bezos Does His Best Mark Zuckerberg Impression

Amazon said yesterday that CEO Jeff Bezos was available to testify before the House to answer questions over an antitrust probe into the tech sector.

Bezos testifying would be Prime time TV

The last time a major tech CEO set off fireworks on Capitol Hill was when Facebook's Mark Zuckerberg explained the internet to lawmakers during the Cambridge Analytica hearings in 2018. 

This time around, the House will focus on whether Amazon and other tech companies have unfairly squashed competition. 

• A WSJ report in April claimed that Amazon used data from independent sellers to launch its own competing products—a practice it denied to Congress. 

Lawmakers have also asked the CEOs of Apple, Facebook, and Google to testify over other allegations of competition-busting practices. But you have to think that Jeff “world’s-richest-man” Bezos will be the main event (plus, he's never testified on Capitol Hill before). 

Zoom out: Rather than hurting Big Tech, the pandemic seems to have made these firms more ubiquitous, and lawmakers are eager to ramp up their pre-COVID attempts to limit the companies' influence. 

AVIATION

United: More Cash Plz?

Ever since the coronavirus grounded flights, airlines have found themselves in a cash crunch not seen since Brett ran out of meal credits freshman year of college. 

Yesterday, United Airlines made a plan to boost its cash reserves that includes snagging a $5 billion loan from three major banks. The carrier put up its frequent flier program as collateral, an unprecedented move no airline has tried since last Friday, when American Airlines also said it would mortgage its loyalty program to secure a government loan. 

• Loyalty programs have been a lifeline for airlines when very few people are flying—United says its MileagePlus rewards program is worth over $20 billion and rakes in more than $5 billion in cash per year.

Bottom line: United is still burning through $40 million a day, but with an uptick in air travel, federal loans from the CARES Act, and projections of $17 billion in total liquidity by the end of Q3, things are looking (kind of) up for the U.S.’ second-largest airline. 

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E-COMMERCE

A Cyberstalking Story That'll Make You Squirm

Yesterday, U.S. Attorney General Andrew Lelling announced that six former eBay employees are being charged for an extensive intimidation campaign against a Boston-area couple who reportedly criticized the company in their online newsletter.

• The charges: cyberstalking and conspiracy to tamper with witnesses. 
• The specifics: Mailing the couple a Halloween mask of a bloody pig face, boxes of live cockroaches and spiders, and a book about surviving the loss of a partner. Doxing the couple by posting their address on Craigslist and soliciting sexual partners. There’s more.

The harassment was “a systematic campaign fueled by the resources of a Fortune 500 company to emotionally and psychologically terrorize this middle aged couple,” Lelling said. 

If you’re thinking “that’s just a few rotten apples”...Lelling counters that given the involvement of multiple higher-ups (including, ironically, a former head of safety and security), the harassment can’t be written off as “rogue” behavior. 

For its part, eBay investigated the suspicious activity last August following an FBI tip and fired all six employees a month later.

ENTERTAINMENT

Remember This?

That’s Parasite director Bong Joon Ho accepting an Academy Award in February, moments before enjoying both the most memorable and least memorable night of his life.

Yesterday, we learned we’ll have to wait longer for another Bong gem—the Oscars will be delayed to April 25 from February 28 because of the coronavirus. That means the eligibility window for feature films is also being pushed back from Dec. 31, 2020 to Feb. 28, 2021. 

Zoom out: The pandemic has halted the vast majority of film production globally, decimated theater chains, and delayed the summer’s most anticipated releases. It wasn’t until last Friday that Hollywood studios were allowed to restart film and TV production.

In delaying the awards, the Academy of Motion Picture Arts and Sciences' goal is to “provide the flexibility filmmakers need to finish and release their films without being penalized for something beyond anyone’s control.”  

+ While we’re here: The Academy said it’s putting together a task force to develop new diversity and inclusion standards for Oscars eligibility by July 31.

WHAT ELSE IS BREWING

• T-Mobile suffered a major outage across the U.S.
• The FDA has pulled its emergency use authorization for hydroxychloroquine to treat COVID-19 patients who are hospitalized.
• Treasury Secretary Steve Mnuchin said he'll talk to Congress about oversight/disclosure of Paycheck Protection Program funds.
• 24 Hour Fitness filed for Chapter 11 bankruptcy.
• BP will cut the value of its assets by up to $17.5 billion because of what it says is weak demand for energy.
• The Supreme Court upheld a permit for a proposed $8 billion pipeline to tunnel under the Appalachian Trail.

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OSCARS TRIVIA

The last time the Oscars were pushed back was in 1981. What incident led to the delay? 

OSCARS TRIVIA ANSWER

The attempted assassination of Pres. Ronald Reagan.

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Investing in Jamestown Invest 1, LLC’s common shares is speculative and involves substantial risks. The “Risk Factors” section of the offering circular contains a detailed discussion of risks that should be considered before you invest. These risks include, but are not limited to, illiquidity, complete loss of invested capital, limited operating history, conflicts of interest, blind pool risk, and any public health emergency. In addition to the foregoing risks, the adverse economic effects of the COVID-19 pandemic are unknown and could materially impact this investment. Further, there is no assurance that Jamestown Invest 1, LLC will be able to achieve its investment objectives or to access targeted investments like those identified. Securities offered through North Capital Private Securities member FINRA/SIPC.