VOLUME 51

Happy Thursday!

For some reason, we are covering a bunch of lawsuits today, so to kick things off, we're first going to talk about Disney’s massive milestone of reaching $3 billion in revenue this year through their films!

And don’t forget that if you want to stay more up to date with our stories in real time, to give us a follow us on Instagram.

Enjoy today’s round ups!

— Jacob Pace

Disney Becomes First Studio This Year to Pass $3 Billion

Disney has become the first studio of 2024 to surpass the $3 billion mark in global box office revenue, driven by hits like Inside Out 2 ($1.56 billion) and Deadpool & Wolverine ($824 million). Despite a slow start to the year with films like The First Omen ($52.7 million), Disney's acquisition of 20th Century Studios helped boost revenue due to its release of Kingdom of the Planet of the Apes ($396.3 million).

Why it matters: Disney has been struggling quite a bit ever since the impact of the COVID-19 pandemic, facing increased streaming competition and several underperforming releases. So, the fact that they have become the first studio this year to hit this milestone is huge. To no surprise, this turnaround has been under the leadership of Mr. Bob Iger himself, who returned to the company in November of 2022.

What’s next: Even though we're already slightly past the first half of the year, Disney still has tons of ammunition in its pocket with upcoming titles in 2024 including Alien: Romulus, Moana 2, and Mufasa: The Lion King.

KSI and Logan Paul's Hydration Company Prime Hit with $68M Lawsuit

In the latest legal drama involving popular influencers Logan Paul and KSI, their hydration brand Prime is facing a massive $68 million lawsuit from bottling company Refresco Beverages. The lawsuit alleges a breach of contract, citing that Prime pulled out of a deal after Refresco had made significant investments to accommodate their production needs. According to court documents, Refresco claims that they altered their production line at considerable cost to produce bottles specifically for Prime. However, Prime allegedly withdrew from the agreement before the final test run, despite having signed a deal known as the Truesdale Agreement.

Why it matters: In addition to the $68 million lawsuit with Refresco, Prime is currently facing multiple legal challenges, including allegations of PFAS contamination in their sports drinks and excessive caffeine content in their energy drinks, which pose health risks, particularly for children, who are their target audience after all.

What’s next: The lawsuit is scheduled to proceed in Delaware’s Chancery Court. Prime has yet to publicly respond to the allegations, but they are expected to file their defense soon. The initial hearings are set to occur in the coming months, which will determine if the case moves to a full trial or if a settlement can be reached beforehand.

U.S. Government Sues TikTok for COPPA Violations

The U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) have filed a civil lawsuit against TikTok Inc., ByteDance Ltd., and their affiliates, alleging repeated violations of the Children's Online Privacy Protection Act (COPPA). The lawsuit, filed in the U.S. District Court for the Central District of California, accuses TikTok of failing to protect the privacy of children under 13.

The allegations: TikTok is accused of allowing children under 13 to create accounts without parental consent, collecting their data, and failing to comply with requests to delete this information. Despite a prior court order, TikTok allegedly continued to collect and retain children's data, exposing millions to potential risks.

What’s next: The outcome of this lawsuit could lead to significant penalties for TikTok and stricter enforcement of COPPA regulations, impacting how social media platforms handle children's data. Many are drawing parallels to previous high-profile COPPA violations by companies like Epic Games and Google, which also created compliance regulations for these emerging industries.

Elon Musk sues OpenAI… Again

Elon Musk has filed a new lawsuit against OpenAI, its CEO Sam Altman, and co-founder Gregory Brockman, alleging that the company has deviated from its original nonprofit mission and engaged in racketeering.

For context: Musk co-founded OpenAI in 2015 with the vision of ensuring artificial intelligence (AI) benefits all of humanity. However, tensions rose when Musk claimed the company was prioritizing profit over its altruistic goals. In February 2024, Musk sued OpenAI, accusing it of reserving advanced AI technology for private customers and abandoning its nonprofit mission. This lawsuit was dropped in June after OpenAI published emails from Musk supporting the company's need to generate significant revenue for its AI projects.

Fast forward to today: Filed in federal court in Northern California, the new lawsuit expands on the previous allegations and introduces claims of racketeering. Musk's lawyer, Marc Toberoff, stated that the case seeks to expose "defendants’ hot-air philanthropy" and address the future of artificial general intelligence (AGI).

In response: OpenAI dismissed Musk’s claims as “incoherent” and “frivolous.” They highlighted Musk's previous acknowledgments of the financial demands for AI development in his emails.

What’s next: The lawsuit demands the establishment of a constructive trust on OpenAI’s gains, property, and assets traceable to Musk’s contributions and seeks to void OpenAI, Inc.’s license with Microsoft.

What’s up all the lawsuits? Y’all gotta chill.

See you next week!