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TikTok loses court bid to stop U.S. ban. Supreme Court appeal is expected

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TikTok loses court bid to stop U.S. ban. Supreme Court appeal is expected

TikTok’s future in the U.S. is now in greater jeopardy after the popular social video app on Friday lost a major court battle as it tries to prevent its banishment.

In May, TikTok sued the government, asking the U.S. Court of Appeals to declare unconstitutional a law that would require its Chinese parent company, ByteDance, to divest TikTok’s U.S. operations or face a ban in the country.

Legislators backing the law said a ban or sale was necessary to address national security concerns posed by the app’s ties to China.

The law, signed by President Biden, is set to go into effect Jan. 19.

TikTok had said in its lawsuit that the law violated its 1st Amendment rights to free speech. TikTok contended that the law “offers no support for the idea” that TikTok’s Chinese ownership poses national security risks.

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More than 170 million Americans use the video app, where people share dance routines, cooking tips, funny videos and news stories.

“On the merits, we reject each of the petitioners’ constitutional claims,” the judges said in their decision issued Friday.

Legal experts said they anticipate TikTok will appeal its case to the Supreme Court. It is also possible that Biden could offer ByteDance an extension to divest, but some experts said they believe that is unlikely.

“The Supreme Court has an established historical record of protecting Americans’ right to free speech, and we expect they will do just that on this important constitutional issue,” said TikTok spokesman Michael Hughes in a statement on Friday. “Unfortunately, the TikTok ban was conceived and pushed through based upon inaccurate, flawed and hypothetical information, resulting in outright censorship of the American people.”

Carl Tobias, a law professor at the University of Richmond, said TikTok could ask the court to put a hold on the ruling until the Supreme Court hears its case.

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“They still have another shot with the Supreme Court,” Tobias said. “It’s an important issue. It’s a difficult one, and it affects a lot of Americans, foreign policy and national security. If it’s a matter of [the Supreme Court’s]interest in it, I expect that interest would be high.”

President-elect Donald Trump had campaigned on supporting TikTok, despite having pushed for a ban during his first term.

“We’re not doing anything with TikTok,” he said on a video posted on social media earlier this year.

The Trump transition team did not immediately return a request for comment. His statements in support of TikTok have given creators some hope, though it’s not clear what action his administration will take.

The ban would go into effect the day before Trump takes office.

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A ban on TikTok could hurt the livelihoods of many Southern California video creators and influencers who post content on the platform. Many of those creators over the years have diversified where they post their content to prepare for a potential ban.

Sabrina Mercado, 21, is a full-time content creator from Downey. She created her TikTok in 2019 and today has 459,000 followers on the platform.

About a year ago, Mercado briefly considered creating a press-on nail business and selling on TikTok Shop, the company’s e-commerce platform, but hesitated.

“If TikTok were to be banned, what would happen to business?” she said. “It just makes things riskier.”

Mercado now posts on Instagram, TikTok YouTube and Snapchat, with Instagram being her main focus.

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Joey Soboleski II, 26, a full-time content creator from Glendale, has grown his following to more than 403,000 people who watch his comedy and lifestyle content since joining TikTok in 2019.

Still, he’s not concerned about a ban.

“I built a platform on Instagram that’s bigger than TikTok and I think the viewership will go over to Instagram honestly or YouTube or both. And then the money will go over,” he said.

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Kanye West ordered to pay former contractor $140,000 over Malibu mansion lawsuit

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Kanye West ordered to pay former contractor 0,000 over Malibu mansion lawsuit

A jury found Ye, the controversial music impresario formerly known as Kanye West, liable in the legal dispute brought by his former contractor and ordered him to pay $140,000.

Tony Saxon, who also worked as Ye’s security guard and caretaker at the Malibu property, sued the rapper in Los Angeles Superior Court in September 2023, claiming a slate of labor violations, nonpayment of services and disability discrimination.

The $140,000 judgment announced Wednesday is far less than the $1.7 million in damages that Saxon’s lawyers had originally requested. Ye will also have to pay for Saxon’s legal fees, which is expected to put the total sum that West will have to pay at more than $1 million.

Although Saxon’s attorneys at the Los Angeles-based firm West Coast Trial Lawyers called the verdict a “mixed” one, they characterized it as as a “vindication for our client.”

“Ye’s lawyers called him a liar, a fraud, and a malingerer in court. His medical records, bank records, and personal family history were dissected, mocked, and vilified,” said attorney Ronald Zambrano in a statement.

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“In true David-vs.-Goliath fashion, Mr. Saxon stood firm against one of the biggest celebrities in the world, with the truth on his side,” Zambrano said.

Saxon alleged that while working as a security guard on the property, he was forced to sleep on the floor and was fired in November 2021 for failing to comply with Ye’s “dangerous requests.” He also said that he frequently complained to West about these and other issues, but that the rapper failed to address them.

In a statement, Ye’s spokesperson noted the jury had “rejected almost all of his [Saxon’s ] claims,” and that Saxon only recovered “a small fraction of what his lawyers demanded.”

“The jury also found that Saxon acted in the capacity of a contractor and did not qualify for the employee exception under California’s contractor licensing statutes,” according to the statement. “We believe the damages award is legally barred and we’ll be seeking post-trial relief from the court.”

Ye purchased the beachfront concrete mansion in 2021— designed by Pritzker Prize-winning Japanese architect Tadao Ando — for $57.3 million. He then gutted the property on Malibu Road, reportedly saying, “This is going to be my bomb shelter. This is going to be my Batcave.”

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Three years later, the hip-hop star sold the unfinished mansion (he had removed the windows, doors, electricity and plumbing and broke down walls), at a significant loss to developer Steven Belmont’s Belwood Investments for $21 million.

In court filings Ye denied Saxon’s allegations. In a November 2023 response to the complaint, he disputed that Saxon “has sustained any injury, damage, or loss by reason of any act, omission or breach by Defendant.”

In January, Ye sued Saxon and his law firm over a $1.8 million lien placed on the Malibu mansion, alleging they “wrongfully” placed an “invalid” lien on the property “while simultaneously launching an aggressive publicity campaign designed to pressure Ye, chill prospective transactions, and extract payment on disputed claims already being litigated in court.”

The Malibu mansion that Ye purchased and gutted was later purchased and restored to its original design.

(The Oppenheim Group / Roger Davies)

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That case is pending.

Ye’s spokesperson said the lien “clouded the home’s title and interfered with its sale, destroying substantial value at the time of sale.”

In recent years, the mercurial superstar has faced a number of public and legal dramas.

In 2022, Ye lost numerous lucrative partnerships with companies like Adidas and the Gap, following a raft of antisemitic statements, including declaring himself a Nazi on X (which he later recanted).

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Two years later, Ye abruptly shut down Donda Academy, the troubled private school he founded in 2020.

Ye, the school and some of his affiliated businesses faced multiple lawsuits from former employees and educators, alleging they were victims of wrongful termination, a hostile work environment and other claims.

In court filings, Ye has denied each of the claims made against him by former employees and educators at Donda.

Several of those suits have been settled.

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Yamaha is leaving California after nearly 50 years

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Yamaha is leaving California after nearly 50 years

Yamaha Motor Corp. is relocating part of its operations to Georgia and selling its California assets after 47 years.

The company is the latest among a slew of businesses to relocate operations outside the Golden State to cut costs and improve profitability. Many cite high taxes and strict regulations as obstacles to doing business in the state.

Yamaha Motor Corp. U.S.A., the U.S. subsidiary of Yamaha Motor Co., has been based in Cypress since 1979. It will begin its move to Kennesaw, Ga., at the end of this year and complete the moving process by the end of 2028, the company said in an announcement.

The company’s marine and motorsports business facilities already moved to Kennesaw in 1999 and 2019, respectively. The Cypress facility currently houses corporate functions and the financial services business on roughly 25 acres, the company said.

Yamaha said it will sell all its land, offices, warehouses and other fixed assets in California. It will use a sale-and-leaseback arrangement for a temporary period to ensure a smooth transition and business continuity.

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“This initiative is positioned as one of the Company’s key measures aimed at improving asset efficiency and enhancing profitability in the United States,” the company said in its announcement of the move. Yamaha “is undertaking structural reforms … in response to cost increases resulting from U.S. tariffs and changes in the market environment,” it said.

Yamaha Motor was founded in Japan in 1955 and began selling its products in the U.S. in 1960. The company got its start making motorcycles for racing and contests, and released its first boat motor in 1960. It acquired land in Cypress in 1978 and established an office there one year later.

Some companies have been vocal about their dissatisfaction with California’s business environment.

Last year, Bed Bath & Beyond’s executive chairman, Marcus Lemonis, said his bankrupt company won’t be reopening any stores in California, where it used to have more than 80 locations.

“California has created one of the most overregulated, expensive, and risky environments for businesses,” Lemonis said in a statement posted on X in August.

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Also in August, In-N-Out owner Lynsi Synder announced she was moving her family from California to Tennessee, where she planned to open a new regional headquarters. In-N-Out’s California headquarters remains operational.

“There’s a lot of great things about California, but raising a family is not easy here,” Snyder said on a podcast at the time. “Doing business is not easy here.”

Tesla moved its headquarters out of Palo Alto in 2021, the same year that financial services firm Charles Schwab relocated from San Francisco to north Texas.

Elon Musk moved the head offices of his other companies — SpaceX and X — to Texas in 2024, as did Chevron, the oil giant that was started in California.

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Disneyland Resort President Thomas Mazloum named parks chief

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Disneyland Resort President Thomas Mazloum named parks chief

Disneyland Resort President Thomas Mazloum has been named chairman of Walt Disney Co.’s experiences division, the company said Tuesday.

Mazloum succeeds soon-to-be Disney Chief Executive Josh D’Amaro as the head of the Mouse House’s vital parks portfolio, which has become the economic engine for the Burbank media and entertainment giant. His purview includes Disney’s theme parks, famed Imagineering division, merchandise, cruise line, as well as the Aulani resort and spa in Hawaii.

Jill Estorino will become the head of Disneyland Resort in Anaheim. She previously served as president and managing director of Disney Parks International and oversaw the company’s theme parks and resorts in Europe and Asia.

Estorino and Mazloum will assume their new roles on March 18, the same day as D’Amaro and incoming Disney President and Chief Creative Officer Dana Walden.

“Thomas Mazloum is an exceptional leader with a genuine appreciation for our cast members and a proven track record of delivering growth,” D’Amaro said in a statement. “His focus on service excellence, broad international leadership and strong connection to the creativity that brings our stories to life make him the right leader to guide Disney Experiences into its next chapter.”

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Mazloum had been about a year into his tenure at Disneyland. Before that, he was head of Disney Signature Experiences, which includes the cruise line. He was trained in hospitality in Europe.

In his time at Disneyland, Mazloum oversaw the park’s 70th anniversary celebration and recently pledged to eliminate time limitations for park-hopping, which are designed to manage foot traffic at Disneyland and California Adventure.

Mazloum will now oversee a 10-year, $60-billion investment plan for Disney’s overall experiences business, which includes new themed lands in Disneyland Resort and Walt Disney World. At Disneyland, that expansion could result in at least $1.9 billion of development.

The size of that investment indicates how important the parks are to Disney’s bottom line. Last year, the experiences business brought in nearly 57% of the company’s operating income. Maintaining that momentum, as well as fending off competitors such as Universal Studios, is key to Disney’s continued growth.

In his new role, Mazloum will have to keep an eye on “international visitation headwinds” at its U.S.-based parks, which the company has said probably will factor into its earnings for its fiscal second quarter. At Disneyland Resort, that dip was mitigated by the park’s high percentage of California-based visitors.

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Times staff writer Todd Martens contributed to this report.

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