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Supreme Court denies oil industry plea to block climate lawsuits filed by California, other blue states

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Supreme Court denies oil industry plea to block climate lawsuits filed by California, other blue states

The Supreme Court dealt a major setback to the oil industry Monday, refusing to block lawsuits from California and other blue states that seek billions of dollars in damages for the effects of climate change.

Without a comment or dissent, the justices turned down closely watched appeals from Sunoco, Shell and other energy producers.

In Sunoco vs. Honolulu, the oil industry urged the justices to intervene in these state cases and rule that because climate change is a global phenomenon, it is a matter for federal law only, not one suited to state-by-state claims.

“The stakes could not be higher,” they told the court.

But none of the justices said they wanted to hear their claim, at least not now.

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The decision clears the way for more than two dozen suits filed by states and municipalities to move forward and try to prove their claim that the major oil producers knew of the potential damage of burning fossil fuels but chose to conceal it.

“Big Oil companies keep fighting a losing battle to avoid standing trial for their climate lies,” said Richard Wiles, president of the Center for Climate Integrity. “With this latest denial, the fossil fuel industry’s worst nightmare — having to face the overwhelming evidence of their decades of calculated climate deception — is closer than ever to becoming a reality.”

Two years ago, California Gov. Gavin Newsom and Atty. Gen. Rob Bonta filed a lawsuit in San Francisco County Superior Court against five of the largest oil and gas companies — Exxon Mobil, Shell, Chevron, ConocoPhillips and BP — and the American Petroleum Institute for what they described as a “decades-long campaign of deception” that created climate-related harms in California.

“For more than 50 years, Big Oil has been lying to us — covering up the fact that they’ve long known how dangerous the fossil fuels they produce are for our planet,” Newsom said in announcing the suit.

In recent days, California officials have blamed climate change for the devastating weather conditions that contributed to the deadly wildfires that destroyed thousands of homes and other structures, leading to what many experts expect to become the costliest natural disaster in U.S. history.

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California’s suit followed the pattern set by similar claims from the cities of Baltimore, New York, Chicago and San Francisco as well as blue states including Massachusetts, Connecticut, Rhode Island, New Jersey and Minnesota.

These suits argue that the oil producers used deceptive marketing to hide the danger of burning fossil fuels. Under state law, companies can be held liable for failing to warn consumers of a known danger.

In June 2024, the court asked the Justice Department to weigh in on the issue. In December, lawyers for the Biden administration urged the court to stand aside for now because the suits are at an early stage.

Justice Samuel A. Alito Jr. said he took no part in the decision to deny the appeals, presumably because he owns stock in companies affected by the dispute.

The climate change lawsuits were patterned after the successful mass lawsuits filed by states and others against the tobacco industry over cigarettes and the pharmaceutical industry over opioids.

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Cigarettes and opioids were sold legally, but the suits alleged that industry officials conspired to deceive the public and hide the true dangers of their highly profitable products.

Under state law, plaintiffs can seek damages for broad and open-ended claims such as a failure to warn of a danger, false advertising or creating a public nuisance. All three claims are cited in California’s lawsuit. Federal law, by contrast, is usually limited to damage claims that are authorized by Congress.

Had the Supreme Court agreed to hear the oil industry’s appeal in the Hawaii case, it “would have frozen the cases for a year or more and could have resulted in a death blow for all of them,” said Patrick Parenteau, an environmental law expert at the Vermont Law School.

Los Angeles lawyer Theodore J. Boutrous Jr., who represents Chevron, said the company “will continue to defend against meritless state law climate litigation, which clashes with basic constitutional principles, undermines sound energy policy.”

Meanwhile, Alabama and 20 red states urged the court to throw out these blue-state lawsuits. They said liberal states and their judges should not have the power to set the nation’s policy on the energy industry. The court has not ruled on that claim yet.

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The case dismissed Monday began five years ago when the city and county of Honolulu sued Sunoco and 14 other major oil and gas producers, alleging a failure to warn and creating a nuisance.

The Hawaii Supreme Court last year rejected the industry’s motion and refused to dismiss the suit.

“Simply put, the plaintiffs say the issue is whether defendants misled the public about fossil fuels’ dangers and environmental impact. We agree …. This suit does not seek to regulate emissions and does not seek damages for interstate emissions,” the state court said in a unanimous opinion. “Rather, plaintiffs’ complaint clearly seeks to challenge the promotion and sale of fossil-fuel products without warning and abetted by a sophisticated disinformation campaign.”

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Commentary: In two new court cases, judges find that AI does not have human intelligence

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Commentary: In two new court cases, judges find that AI does not have human intelligence

It’s becoming clearer with every passing day that the only people making a serious effort to come to grips with the implications of artificial intelligence for society aren’t legislators, or business leaders, or AI promoters themselves. They’re judges.

Indeed, in recent weeks, judges in two federal cases have drawn a line that seems to have eluded many others contemplating AI. The cases relate to copyright law and attorney-client privilege.

In both cases, the judges have effectively declared that AI bots are not human. They don’t have rights reserved for people, and their outputs don’t deserve to be treated as though they come from human intelligence or have any special high-tech standing.

Must invention remain exclusively human, or can autonomous computational systems genuinely originate ideas?

— Artist and computer scientist Stephen Thaler

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There’s more to those cases than that. Both cases, including one that got as far as the Supreme Court, underscore the determination of AI promoters and uses to infiltrate the new technology deeper into society.

Start with the more recent case. On Monday, the Supreme Court declined to take up a lawsuit in which artist and computer scientist Stephen Thaler tried to copyright an artwork that he acknowledged had been created by an AI bot of his own invention. That left in place a ruling last year by the District of Columbia Court of Appeals, which held that art created by non-humans can’t be copyrighted.

The case revolved around a 2012 painting titled “A Recent Entrance to Paradise,” depicting train tracks running under a bridge and disappearing into vegetation. Thaler wrote in his application for a copyright that the “author” of the work was his “Creativity Machine,” an AI tool, and that the work was “created autonomously by machine.”

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The appellate ruling didn’t engage in artistic criticism, but the work’s artificial origin might be manifest to the discerning eye — its landscape is busy yet indistinct, sort of a melange of green and purple, and the framing doesn’t have any artistic logic — the eye doesn’t know what it’s supposed to be following. But Thaler says it’s the AI bot’s creation and wasn’t generated in response to any user prompt.

In any event, for Judge Patricia A. Millett, who wrote the opinion for a unanimous three-judge panel, the case wasn’t a close one. She cited longstanding regulations of the Copyright Office requiring that “for a work to be copyrightable, it must owe its origin to a human being.”

Millett noted that Thaler hadn’t bothered to conceal the non-human origin of “A Recent Entrance,” acknowledging in court papers that the painting “lacks human authorship.” She rejected Thaler’s argument, as had the federal trial judge who first heard the case, that the Copyright Office’s insistence that the author of a work must be human was unconstitutional. The Supreme Court evidently agreed.

Thaler told me he didn’t see the Supreme Court’s turndown as a “legal defeat.” In a LinkedIn post about the case, he wrote that the decision “represents a philosophical milestone — one that exposes how deeply our intellectual property system struggles to confront autonomous machine creativity.”

As that suggests, Thaler believes we shouldn’t distinguish how we view human creations from machine outputs. “Intelligence, creativity, and invention are not limited to human products,” he told me by email. Autonomous computational systems such as his AI program, he said, “can generate these functions independently.”

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Millett’s ruling actually opened the door to admitting AI into the copyright world — but only when it’s used as a tool by a human author. What set Thaler’s case apart from those, she wrote, was his insistence that his AI bot was the “sole author of the work” (emphasis hers), “and it is undeniably a machine, not a human being.”

That brings us to the second case, which involved the question of whether an AI bot’s work should be protected under attorney-client privilege. Federal Judge Jed S. Rakoff of New York ruled, concisely, “The answer is no.”

As I’ve written in the past, Rakoff is one of our most percipient jurists about the impact of new technologies on the law. In his occasional essays for the New York Review of Books, he’s examined how a secret AI algorithm has skewed the sentencing of criminal defendants (especially Black defendants), how cryptocurrency advocates have made a tangle of existing laws on fraud, and how the misuse of cognitive neuroscience has resulted in convictions based on false memories.

In other words, Rakoff isn’t a judge you should try snowing with technological flapdoodle.

The case involved one Bradley Heppner, who was indicted by a federal grand jury for allegedly looting $150 million from a financial services company he chaired. Heppner pleaded innocent and was released on $25-million bail. The case is pending.

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According to a ruling Rakoff issued on Feb. 17, the issue before him concerned exchanges that Heppner had with Claude, the chatbot developed by the AI firm Anthropic, written versions of which were seized by the FBI when it executed a search warrant of Heppner’s property.

Knowing that an indictment was in the offing, Heppner had consulted Claude for help on a defense strategy. His lawyers asserted that those exchanges, which were set forth in written memos, were tantamount to consultations with Heppner’s lawyers; therefore, his lawyers said, they were confidential according to attorney-client privilege and couldn’t be used against Heppner in court. (They also cited the related attorney work product doctrine, which grants confidentiality to lawyers’ notes and other similar material.)

That was a nontrivial point. Heppner had given Claude information he had learned from his lawyers, and shared Claude’s responses with his lawyers.

Rakoff made short work of this argument. First, he ruled, the AI documents weren’t communications between Heppner and his attorneys, since Claude isn’t an attorney. All such privileges, he noted, “require, among other things, ‘a trusting human relationship,’” say between a client and a licensed professional subject to ethical rules and duties.

“No such relationship exists, or could exist, between an AI user and a platform such as Claude,” Rakoff observed.

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Second, he wrote, the exchanges between Heppner and Claude weren’t confidential. In its terms of use, Anthropic claims the right to collect both a user’s queries and Claude’s responses, use them to “train” Claude, and disclose them to others.

Finally, he wasn’t asking Claude for legal advice, but for information he could pass on to his own lawyers, or not. Indeed, when prosecutors tested Claude by asking whether it could give legal advice, the bot advised them to “consult with a qualified attorney.”

In his ruling, Rakoff did make an effort to address the broader questions judges face in dealing with AI. “Only three years after its release,” he wrote, “one prominent AI platform is being used by more than 800 million people worldwide every week. Yet the implications of AI for the law are only beginning to be explored.”

He concluded that “generative artificial intelligence “presents a new frontier in the ongoing dialogue between technology and the law….But AI’s novelty does not mean that its use is not subject to longstanding legal principles, such as those governing the attorney-client privilege and the work product doctrine.”

In this case and elsewhere, Rakoff has shown a superb grasp of technology issues. In his 2021 essay about the AI algorithm capable of sending people to jail, he put his finger on the factor that makes the very term “artificial intelligence” a misnomer.

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The term, he wrote, tends to “conceal the importance of the human designer….It is the designer who determines what kinds of data will be input into the system and from what sources they will be drawn. It is the designer who determines what weights will be given to different inputs and how the program will adjust to them. And it is the designer who determines how all this will be applied to whatever the algorithm is meant to analyze.”

He’s right. That why judges have had so much trouble determining whether the AI engineers feeding information into chatbots to make it seem like they’re “creative” and even “sentient” are infringing the copyrights of the original creators of that information, or creating something new.

The problem is that they’re asking the wrong question. Everything an AI bot spews out is, at more than a fundamental level, the product of human creativity. The AI bots are machines, and portraying them as though they’re thinking creatures like artists or attorneys doesn’t change that, and shouldn’t.

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As gas prices rise, California gets punched harder at the pump than other states

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As gas prices rise, California gets punched harder at the pump than other states

Californians are feeling more pain at the pump than any other state as the conflict with Iran pushes up prices.

Spencer Shearer was filling up his Nissan Sentra on Friday morning at the Chevron station in Brentwood near San Vicente and Montana avenues and paying a rate higher than almost anywhere else in the country: $5.55 per gallon.

“It sucks,” Shearer said as he watched his bill on the pump click toward $50.

With the continued conflict in and around Iran, gas prices are rising. In the Los Angeles area and a few places around the San Francisco Bay Area, the cost of gas has cracked $5-per-gallon again and is even tipping toward $6 in a few places.

The spreading conflict in the Persian Gulf has had a predictable but unwelcome impact on California drivers. Californians usually pay far more for gas than people in other states.

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Its pole position on prices is continuing with the latest surge.

The average cost of a gallon of regular gas in California is the most expensive in the country at $4.91, up 6% from a week ago and 11% from a month ago, according to AAA. The nationwide average is $3.32 per gallon.

The conflict with Iran has strangled movement through the Persian Gulf and catapulted the price of a barrel of oil.

The prices in California are higher than in other states because of higher taxes and stricter requirements for cleaner, more expensive gas that pollutes less. This has been a festering issue not only for the industry but also for consumers.

Fuel marketers, gas station owners and some voters have blamed Gov. Gavin Newsom’s policies.

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Gas prices at a Shell station on Foothill Boulevard.

(Robert Gauthier / Los Angeles Times)

Newsom told regulators in 2021 to stop issuing fracking permits and phase out oil extraction by 2045. He also signed a bill allowing local governments to block the construction of oil and gas wells. He seemed to ease his stance last year and signed a bill allowing up to 2,000 new oil wells per year through 2036 in Kern County, which produces about three-fourths of the state’s crude oil.

As a result of the policies that seem aimed at punishing oil producers, California has seen a steady decline in crude oil production, making it more reliant on oil and gasoline supplies outside the state.

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In 2024, only 23% of the crude oil refined in the state was pumped in California, with 13% from Alaska and 63% from elsewhere in the world, including about 30% from the Middle East, according to the Western States Petroleum Assn.

The primary reason gas prices in California are high is that refinery closures are reducing local supply while demand has remained high, said Zachary Leary, chief lobbyist at the Western States Petroleum Assn.

“Geopolitical events … show and highlight how fragile it is here in California,” he said.

California’s special gasoline blends are increasingly imported from overseas and can require more than a month to transport, he added.

Supply bottlenecks have been exacerbated by recent refinery closures, including the Phillips 66 refinery in Wilmington in October and the idling and planned closure of the Valero refinery in Benicia, which reduced refining capacity in the state by close to 20%.

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It is hard to predict how long this spike in prices will stay, said Severin Borenstein, faculty director of the Energy Institute at UC Berkeley’s Haas School of Business.

“We don’t know whether the war will widen or end quickly,” said Borenstein. “Those things will drive the price of crude.”

At the Brentwood gas station, product manager Conner Uretsky, 30, waited as his partner refueled her Toyota Prius ahead of a trip to Palm Springs. Lately, he said, surging fuel costs have made him think twice about going on road trips.

Uretsky, who moved to Los Angeles from the East Coast about six years ago, said he was initially shocked by the region’s high cost of living.

“Gas prices are crazy,” he said.

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Paula, a writer who declined to share her last name, said she was “furious” at President Trump’s decision to start a war with Iran, as well as his recent actions in Venezuela and threats against Greenland and Cuba.

“If you look at who’s paying for this war, we are,” she said, pointing to the fuel price flip sign as she waited for her Volvo hybrid SUV to refuel.

Shearer says he has to be more careful with his gas budget. The business analyst tries to find the least expensive gas near his home in Los Angeles. Still, he’s gotten used to California’s high prices.

“It feels almost normal to be paying this amount,” he said.

Times staff writer Laurence Darmiento contributed to this report.

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Labubu maker Pop Mart is opening U.S. headquarters in Culver City

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Labubu maker Pop Mart is opening U.S. headquarters in Culver City

Pop Mart, the Chinese toymaker known for its collectible Labubu dolls, reportedly plans to open a new office building in Culver City as it seeks to expand its North American presence.

The 22,000-square-foot office will serve as Pop Mart’s new U.S. headquarters, according to real estate data provider CoStar, which earlier reported the deal.

Pop Mart, founded in 2010 in Beijing, is credited with fueling the frenzy over “blind boxes” — small, collectible toys sold in packaging that keeps the exact figure inside a surprise until it is unsealed.

The toymaker, which is publicly traded on the Hong Kong Stock Exchange, has nearly 600 physical stores across 18 countries, according to its September 2025 half-year financial report.

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Much of its recent growth has concentrated in the U.S. In the first half of last year, the company opened 40 new stores, including 19 in the Americas. In Southern California, it now has stores in Westfield Century City, Glendale Galleria, and Westfield UTC Mall in La Jolla.

The office building Pop Mart is moving into, named “Slash,” features leaning glass windows and a distinguishable jagged design. The 1999 building was designed by the Los Angeles architect Eric Owen Moss.

Pop Mart’s decision to root itself in L.A.’s Westside comes amid Culver City’s transformation from a sleepy suburb known for being the home to Sony Pictures Studios — to an urban hub, driven, in part, by the Expo Line station that opened in 2012.

Ikea recently announced plans to open a 40,000-square-foot store in Culver City’s historic Helms Bakery complex — its first in L.A.’s Westside — later this spring.

Big tech has played an important role in Culver City’s recent evolution. Recent additions include Apple, which has opened a studio and has been building a larger office campus; Amazon, which in 2022 unveiled a massive virtual production stage, and Tiktok, which in 2020 opened a five-floor office featuring a content creation studio. Pinterest has a new office in Culver City as of last month, according to the company’s LinkedIn account.

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