Business

(NEW YORK) — When Jarvis Claiborne and his wife Renada were pre-approved for a mortgage in February, they were excited to start shopping for their first home in Houston, Texas. But that excitement quickly turned to shock and frustration as they realized they couldn’t compete with all-cash offers that were often tens of thousands of dollars above a home’s listing price.

“We really just weren’t willing to pay the prices that people were asking and that people were paying,” Jarvis Claiborne told ABC News. “Most of the houses, we didn’t even have a chance to bid on. As soon as they were coming on the market, they would just get snatched up.”

Jarvis Claiborne, who works in the oil and gas industry and Renada, a private investigator, decided to walk away from their home search in June, as mortgage rates climbed above 6%.

After two years of housing-hunting and getting outbid, often by all-cash offers, Tinesha Feiton, a single mom from Brooklyn, New York, is in contract to buy a three bedroom home in West Orange, New Jersey.

“It feels a little surreal,” Feiton told ABC News about finally having a seller accept her offer. An information technology consultant, Feiton is paying $46,000 above the asking price of $479,000.

“I still feel kind of worried because I’m just thinking to myself, well, is the house going to appraise for that value. You know, I don’t want my first home to actually be a lemon,” she said.

Feiton said it was important that she be settled in a home in time for her 5-year-old son Mason to start kindergarten in his new school this fall.

Record home prices and higher mortgage rates made May the most expensive month to buy a home since 2006, according to the National Association of Realtors’ Housing-Affordability Index. The index incorporates median existing-home prices, median family incomes and average mortgage rates. The median price of a home in the U.S. reached a record $407,600 in May, according to the NAR, as mortgage rates more than doubled since January to the highest level in 13 years.

That pushed the typical monthly mortgage payment to $1,842 in May, up from $1,297 in January, according to the NAR, assuming a 30-year fixed-rate mortgage and a 20% down payment. Despite the rising cost to finance a home, there are fresh signs that the housing market is slowly becoming more buyer-friendly.

Sales of previously owned homes fell in May for the fourth straight month as more buyers give up, pressuring sellers to cut asking prices. More than one in five homeowners dropped their asking price in May, according to the real estate brokerage Redfin, and for the first time in three years, Realtor.com said the number of homes for sale is on the rise, up 21% in June compared to a year ago.

The real estate firm’s Chief Economist, Danielle Hale, told ABC News there are two reasons for the rise in inventory.

“One, we’ve got more homeowners deciding that now is the time to sell their home, and the other reason is that buyers are getting a little bit choosier as the cost of housing goes up,” she said.

According to Redfin, bidding wars are slowing down and searches for “homes for sale” on Google are down nearly 14% from a year ago.

“A couple of months ago, it wasn’t unusual for a home to get 10 to 20 offers,” said Sarah Drennan, executive vice president at Terrie O’Connor Realtors in Northern New Jersey. “Now, they’re still getting a number of offers, but it’s less than 10.”

Mortgage applications sank 16% in June and are now less than half what they were a year ago, according to the Mortgage Bankers Association.

Drennan said a growing number of sellers now recognize new limits to their pricing power, as the days of sellers asking — and getting — their “make me move price” begin to fade.

“We’re not seeing a price reduction, we’re seeing just a deceleration of price increases,” said Drennan. “So prices are still increasing, just not at double digit rates like we were seeing just a few months ago.”

While home prices are still trending higher nationally, Realtor.com found that prices have begun falling in many smaller Rust Belt cities. In Toledo, Ohio, home prices plunged 18.7% in May. They sank 15.4% in Detroit and fell 13.4% in Pittsburgh, Pennsylvania.

Demand for second-homes is also showing signs of softening. Patty Magie has been selling homes in Pennsylvania’s lake region of the Pocono Mountains for 30 years. She told ABC News she never saw demand for housing like she did at the height of the pandemic.

“People were buying site unseen, waiving appraisals and home inspections,” she said.

Eager for more space to work and school remotely, Magie remembers giving buyers home tours via FaceTime as they chased a small number of available homes. That scenario is changing.

“The current inventory has doubled from what it was in March and April; however, it is still about a third of what it was three to four months ago. There have been more price reductions and fewer bidding wars,” she added.

Potential buyers who have given up their search in favor of renting aren’t finding much, if any, relief. In fact, in some markets, rental prices are outstripping the monthly cost of financing a home, according to Miller Samuel, Inc. The real estate appraiser reported the average rental price in Manhattan cracked a record $4,000 per month in June.

“It’s expensive and getting more expensive in the city,” Jonathan Miller, CEO of Miller Samuel, Inc., told ABC News. “It’s interesting because office towers are two-thirds empty in the city, but yet you’re still seeing record leasing activity for the residential rental market.”

Still, experts say for some buyers, timing the housing market for that “perfect price” could backfire.

“If you have more flexibility in your timeline, you may be able to wait it out and negotiate with sellers,” said Hale, “but keep in mind that mortgage rates are also still climbing so you may end up with a higher mortgage rate if it takes you longer to find a home.”

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(NEW YORK) — The intense heat hitting most of the nation is already invoking warnings about power outages and health impacts.

But there is also another danger posed to drivers, as record temperatures lead to a greater risk of battery failure and degradation, according to engineers.

“Batteries are like humans, they don’t like high heat or low heat,” Anna Stefanopoulou, the William Clay Ford professor of technology at the University of Michigan, told ABC News. “The best temperature is the one humans are comfortable with.”

While there is little drivers can do to contain their cars’ temperatures during heat waves, Stefanopoulou and other experts who have been studying the advances in car technology told ABC News that manufacturers are hard at work finding new ways to beat the rising heat.

Stefanopoulou said that manufacturers constantly put their batteries to the limit during the testing phase since their vehicles are sold all over the world. Even though the batteries can withstand extreme benchmarks, she said there is only so much reliability within the laws of chemistry and engineering.

For example, if a car’s internal temperature reaches above 45 degrees Celsius, or 115 degrees Fahrenheit, the battery is prone to more wear and decreases the life of the cell, she said. Driving in those conditions will also test the limits of the battery, according to Stefanopoulou.

“High-temperature conditions are problematic because it affects the range. Some of the battery will go to keeping the AC … and that drains the battery,” she said.

This week, some parts of the country, including Palm Springs, Las Vegas and Phoenix, will see high temperatures above 110 degrees, according to the forecast.

Heat is a bigger issue when it comes to electric vehicles, which rely entirely on the power of the battery. EV batteries and systems have measures in place to prevent them from puckering under extreme temperatures, according to experts.

Cory Steuben, the president of the Michigan-based engineering consulting firm Munro & Associates, told ABC News that many EV manufacturers are using new types of batteries with thermal management.

The new batteries, such as ones with cylindrical, prismatic and pouch form factors, are engineered to keep the heat within the cell from rising too much.

“These are expensive, complex, very well-controlled machines,” Steuben, whose firm has acquired, taken apart and analyzed parts of several EVs, told ABC News.

He noted that EVs also have additional technologies to keep the car cool, particularly Teslas. The company’s models are equipped with data tracking that keeps an eye on the battery’s temperature, the ambient temperature and the temperatures of its charging stations, according to Steuben.

The car’s alert system has the option to tell a driver when and where to stop to recharge the car to prevent overheating while they’re on the road, Steuben said.

“Imagine if you had a 1980 Ford Bronco with a regular car battery. No one knows what is going on in your car and where it goes. Now we have the technology to constantly monitor the battery and make changes as you drive,” he said.

At the same time, Steuben said that some manufacturers have implemented new tech to keep batteries cool. BMW, for example, has opted to place the battery in the trunk instead of the engine to reduce the heat, he said.

“It requires an expensive cable, but it is a better climate-controlled environment,” Steuben said of the trunk. “It’s essentially the same temperature as the cabin.”

Other methods include cooling systems that pump liquid coolant throughout the engine to keep it from overheating, he said.

Stefanopoulou said the best solution for motorists is to park their vehicle in the shade or, if possible, in a location with a controlled climate — like an indoor garage.

For EVs, she recommended owners charge the car during hot days because those chargers and batteries have safeguards to prevent overheating.

Stefanopoulou acknowledged that the method can lead to bigger problems as it will tax power grids during a high heat event.

“It’s a self-propagating problem,” she said. “The higher the temperatures, the more energy we need to use to cool our vehicles. And that energy is lost and that will heat the environment.”

“That’s why it’s crucial that we continue to improve the battery technology and the power grid,” she added.

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(NEW YORK) — As economists continue to predict the coming of a recession, many are left wondering what they can do to secure and potentially grow their wallets amid the chaos. For some, however, a recession may just be the perfect time to develop generational wealth that could last for years come.

Generational wealth refers to the financial assets that are passed down from one generation to the next. That could be in the form of property, investments, cash money, or other things of monetary value.

This kind of wealth can help ensure that one’s future children or relatives will have some kind of financial support.

However, building wealth isn’t and hasn’t been easy for everyone.

Because of systemic barriers — including racial discrimination in housing, employment and banking — the typical white family has eight times the wealth of the typical Black family and five times the wealth of the typical Hispanic family, according to the Federal Reserve.

Those living paycheck to paycheck make up 54% of the country, according to lending company LendingClub. A 2021 report from the Federal Reserve showed that roughly 36% of Americans likely don’t have enough money to cover a $400 emergency.

Having expendable wealth or generational wealth to build upon is a privilege, according to Jully-Alma Taveras, personal finance writer and founder of Investing Latina. It can be difficult for people with limited income to even begin taking steps toward accumulating wealth.

Catherine Collinson, CEO and president of the nonprofit financial wellness organization Transamerica Institute, says there are still ways for people to implement wealth-building practices into their routine.

“Living paycheck to paycheck can be daunting, especially now amid skyrocketing inflation and the lingering effects of the pandemic,” said Collinson. “Although it’s much easier said than done, it’s important to stay positive and avoid getting discouraged or overwhelmed — because that can be counter-productive.”

There are different routes that can be taken toward building wealth, and the path won’t look the same for everyone, financial experts say.

This journey can begin with small steps as easy as educating your children and family on financial planning, to steps as big as owning property that is likely to accumulate value.

Educate your children and family on financial literacy

Collinson recommends engaging children in family financial budgeting decisions. For example, she says planning for a vacation should include creating a budget, identifying costs, and making the necessary trade-offs to avoid overspending but maximize the amount of fun.

The same could be said for other family activities such as birthday celebrations, taking care of a pet, or grocery shopping.

Collinson said her own relationship with building wealth was influenced by her grandparents.

“Having lived through the Great Depression, they were adamant about living within one’s means and saving for the future whenever possible,” Collinson said. “They taught me that how you manage your money is just as important, perhaps even more important, than the size of your paycheck when it comes to building wealth.”

Taveras also leaned on the influence her business-owning family members had on her to put her on the right path for proper spending.

“I wanted to kind of represent myself and my family who happen to be business owners and have always been very, in many ways, financially strong,” she said.

A S&P Global FINLIT Survey found that only 57% of adults in the U.S. are financially literate.

Invest in the stock market

Investing in the stock market is another way that people can dip their toes into growing wealth.

Taveras says that investing in stocks can become a passive source of income, where an investment as little as a few bucks each month can slowly grow over time. Mobile apps have also made entering the stock market more accessible to the average user.

Taveras started investing when prices were low and said her growing stock have become “a really big part of building wealth.”

“We were in the middle of a recession — this was in the 2008 recession — and as you can imagine, since then, the market has grown exponentially,” said Taveras. “It just goes to show you that you really don’t need a lot to get started.”

As Wall Street predicts a recession in the coming year, now may be the time to start preparing to put money into the stock market.

Not only are some stock prices likely to fall, but so are the prices of some homes.

Owning property and real estate

Owning your home can also be a way of ensuring that future generations can have access to a cheaper place to live that’s already owned by the family.

Though the value of homes can shift up and down depending on a variety of factors, the Federal Housing Finance Agency found that housing markets have experienced positive annual appreciation since the start of 2012.

Not only would a house be worth more than it was when it was bought, but also if the house is passed down to a child or family member, it could save or earn future family members a big chunk of cash.

However, experts acknowledge that this is a harder goal to obtain.

As for some common mistakes to be wary of: financial experts remind employees to take advantage of 401(k) plans and other benefits that workplaces offer that they may be missing out on.

They also stress that putting off a necessary expense — such as home or car repairs — can often balloon problems into worse problems that cost a lot more than they may have originally cost.

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(WASHINGTON) — A favorite picnic staple is being recalled, right on the heels of Fourth of July celebrations.

“Out of an abundance of caution, Hy-Vee, Inc. is voluntarily withdrawing all varieties and all sizes of its Hy-Vee Potato Salad and Mealtime Potato Salad due to a presumptive positive microbial result on the line that the potatoes were processed on,” the U.S. Food and Drug Administration announced July 1. “While final test results are not expected for approximately 7-10 days, due to the holiday weekend Hy-Vee elected to withdraw all product today from its shelves and service cases pending final test results.”

Hy-Vee Voluntarily Withdraws All Potato Salad Varieties Due to Presumptive Positive Microbial Test Result https://t.co/OtMX4Bc6wr pic.twitter.com/NcqNLwGa3P

— U.S. FDA Recalls (@FDArecalls) July 11, 2022

The voluntary recall, according to the FDA, includes all 10 product varieties and sizes of Hy-Vee Potato Salad and Mealtime Potato Salad. (Click here for a full product list and more recall information from the FDA.)

The products were sold in the company’s eight-state region and available in grab-and-go refrigerated cases and/or deli service cases in all Hy-Vee, Hy-Vee Drugstore and Dollar Fresh Market locations, as well as Hy-Vee Fast and Fresh convenience stores.

Customers in Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin who may have purchased the products are encouraged to check the expiration dates. The affected products are marked with dates between July 31, 2022, and Aug. 4, 2022, according to the FDA.

No other Hy-Vee or Mealtime branded salads are impacted and as of time of publication, there have been no reports of illness or complaints involving the products from the recall.

“Customers who have purchased any of these products are urged not to consume the product and dispose of it or return it to their local Hy-Vee for a full refund,” the FDA stated.

The company encouraged any questions be directed to Hy-Vee Customer Care at customercare@hy-vee.com.

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(WASHINGTON) — Following a stronger-than-expected jobs report released on Friday, the Biden administration is continuing to push back on fears of looming economic downtown while working to tame historic inflation.

“I don’t see any reason to think that we will have a serious recession,” Commerce Secretary Gina Raimondo told ABC “This Week” anchor George Stephanopoulos on Sunday when asked about the trajectory of future growth as the Federal Reserve signals further interest rate hikes to slow spending and demand.

Raimondo said the “fundamentals” of the U.S. economy are “very strong” and tackling inflation is “our top priority.”

“We’ve recovered all the jobs since the pandemic. People’s household balance sheets are strong,” she said. “Companies are doing well. Companies are hiring, companies are growing.”

She acknowledged the strain of inflation on daily life and said she expected the economy to “transition to a more traditional growth level,” but said that the public should not “be talking ourselves into a recession.”

The Bureau of Labor Statistics last week announced that 372,000 jobs were added in June — nearly 100,000 more than economists had forecast — and the unemployment rate remained steady at 3.6%.

Asked on Sunday by Stephanopoulos to explain divide between “the strong economic fundamentals” and the “lowest consumer confidence” in the economy in years, Raimondo said it points back to “one word.”

“Inflation. … And people talk about it in different ways. But if you ask folks what they’re worried about, they’ll either say, ‘Grocery store prices are high, food prices are high, energy prices, gas prices,’ that’s in people’s daily lives.”

“Until we do get a handle on inflation, I think it’s natural for a family to be feeling that pinch,” she added.

But the administration will “get a handle” on the rising cost of goods and services, she said.

Amid calls from within the Democratic party to do more to combat inflation, Raimondo was pressed on what further actions President Joe Biden could be doing right now. But she turned some of the responsibility over to the Senate.

“Congress needs to pass the CHIPS Act,” she said, referring to one of two bills that would help accelerate U.S. manufacturing of semiconductor chips. “That has to pass. Has to pass now. Not in six months from now. Now. It’s bipartisan. [Senate Minority Leader] Mitch McConnell just threw a wrench in that about a week ago saying that he wasn’t going to allow Republicans to move on that unless we move down reconciliation. That’s a perfect example, George, of increasing supply. We have inflation now because of lack of supply.”

“Doesn’t that mean the CHIPS bill is dead?” Stephanopoulos asked Raimondo, echoing her point that McConnell has said he will block the legislation as long as Biden continues to push for a reconciliation spending bill over GOP objections.

“It shouldn’t be dead. Why can’t we do both?” Raimondo said. “It’s a false choice. He’s playing politics with our national security, and it’s time for Congress to do its job on both of those dimensions.”

Raimondo was also asked if she was confident in the effectiveness of the global price cap on Russian oil that Biden proposed, with Stephanopoulos pointing to “a lot of economists” who “are skeptical about whether that can really work.”

“I think it can [work],” she said of a price cap. “Yes, I think it can.”

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(NEW YORK) — The digital currencies have crashed as interest rates rise and investors seek less risky investments.
Can cryptocurrency become an alternative financial system for people of color who have historically faced discriminatory banking practices? Some crypto enthusiasts of color who spoke with ABC News say they believe so, even despite the crash in the price of digital currencies.

Worries about the volatile cryptocurrency market also leave some wondering whether turning to digital currency could financially hurt people of color, who generally have less net worth and generational wealth than white people, rather than help them.

Prejudice in banking

Black and brown people have a history of being “underbanked” and discriminated against by traditional financial institutions.

Many low-income Hispanic and Black households have little-to-no bank access, according to research from the Federal Deposit Insurance Corporation.

At least 40% of Black Americans are under or unbanked – 13% are without a bank account and 27% rely primarily on other financial services that do not fully meet their financial needs, according to the Federal Reserve.

An analysis of Home Mortgage Disclosure Act data also found that of all mortgage applications, Black borrowers had the highest denial rate of 27%, followed by Hispanics at almost 22%.

And several investigations about discrimination by several banks, have shown that people of color have been charged more for banking fees or higher interest rates than their white counterparts.

Teri Williams, the president, COO and owner of OneUnited Bank, one of the nation’s largest Black-owned banks, told ABC News that “banking while Black” is a phrase used to describe discriminatory banking practices.

“There are many reasons for the large percentage of unbanked or underbanked Black Americans, including lower median income and education, less access to banking services due to a lower concentration of bank branches and a higher concentration of check cashers in Black communities, and systemic racism,” she said.

She says many Black Americans simply feel unwelcome when they walk into most national bank branches.

Even Black-owned banks have struggled for adequate investment funding and don’t have access to the same resources as large banks.

Cryptocurrency became a space, she says, where communities of color could support and connect with one another without having the red tape of financial systems, according to Olayinka Odeniran, the founder of the Black Women Blockchain Council.

“Everybody always felt that we don’t really care about investing or budgeting,” said Odeniran, who is also a cybersecurity expert. “But in essence, we do. It’s just that historically, we have not had resources that allow us to tap in beyond risk, gaining some monetary freedom that’s beyond paycheck to paycheck.”

Crypto pitfalls

However, the recent crash of a popular stablecoin and the dramatic fall of Bitcoin from nearly $69,000 to below $22,000 in just about two years (at the time of publishing), highlights some of the hazards and risks that come from decentralized financial systems.

The cryptocurrency market crash erased billions of dollars and sent investors into a tailspin.

Even cryptocurrency’s most enthusiastic cheerleaders acknowledge the potential risks and instability that cryptocurrency can have. Its volatile marketplace and the prices of coins can change quickly and regularly, putting one’s money at stake. The market is also rife with scammers eager to take advantage of users.

Still, some say it’s not much different than the ebbs and flows of the stock market.

“Even though we’re experiencing a bear market right now, historically, Bitcoin is still on the up and up,” said Mesidor. “This is a currency that no one paid attention to and now it’s sitting at around $20,000.”

The volatility of the market is one of its major risks. When the market crashes, people of color are likely to be included in the wreckage.

Crypto is so volatile because it isn’t backed by anything intrinsically valuable besides the public interest in it, according to Forbes, whereas the U.S. dollar is backed by the government.

This means that different currencies can drop their value or soar in a day. People can lose money, or potentially owe more on their crypto-based loans, in an instant.

Another risk for those operating in the crypto space is falling prey to scammers, who have taken advantage of a decentralized market rife with a growing number of potentially uneducated newcomers.

Reported losses to crypto fraud in 2021 were up nearly sixty times the losses in 2018, according to the Federal Trade Commission. Without a third party to flag fraud or suspicious activity, or reverse payments, more than 46,000 people have lost money since the start of 2021 to crypto scammers.

An ‘alternative financial system’

A report from the Pew Research Center found that Black, Asian and Hispanic people are more likely to say they have invested in, traded or used a cryptocurrency like Bitcoin or Ether.

“People of color sometimes have difficulty going to get a bank loan or going to get some sort of assistance from the government or a way to start their business and they’re turned down,” said cryptocurrency enthusiast Steven Bumbera. “Crypto doesn’t care.”

Cleve Mesidor, the executive director of the Blockchain Foundation, said that people of color are using crypto as “an alternative financial system to operate” without discrimination.

Enthusiasts contend the benefits of managing money on blockchain technology outweigh the risks for many people of color, and they’re sticking with it.

When using crypto, it can cost almost nothing and takes almost no time to transfer money to anyone in the world at any time, although it depends on the type of crypto.

For crypto-backed loans, borrowers can be given money from an exchange or lending agency without having to worry about racial discrimination.

“If you are on chain, and you have a wallet address, you’re a wallet address — that’s it,” said Bumbera. “Crypto doesn’t care about color, race, sexual orientation.”

Enthusiasts like Bumbera say they like that anyone with a smartphone can access cryptocurrency, without the red tape of banks or government institutions in which it takes days and costs fees or interest rates to do the same.

They also say crypto can be used to fund businesses and organizations directly without donations being penalized by a third-party to transfer the money.

However, for the wave of people of color working within the market, Williams says that this new financial frontier is bound to come with risks and challenges.

“Crypto is not a competitor to traditional banking, but a complement,” Williams said. “There will continue to be a need for traditional banking services, but crypto, in moderation, can provide opportunities for wealth building and opportunities to develop new services – such as remittance services – that can better meet the needs of the Black community.”

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(NEW YORK) — The labor group behind the first-ever U.S. union at Amazon has thrown its support behind organizing campaigns at two additional warehouses.

Amazon Labor Union, the worker-led union behind the victory at an Amazon warehouse in New York City in April, reached agreements to provide organizing and financial assistance for workers trying to unionize warehouses in Albany, NY. and Campbellsville, KY., who will affiliate as formal chapters of the union, ALU President Chris Smalls told ABC News.

The development demonstrates the appeal of worker-led union campaigns and raises the possibility that the momentum built by the initial labor victory will foster unionization at other warehouses, experts said.

But they cautioned that the size of Amazon warehouses and well-resourced anti-union efforts from the corporation will continue to make the labor campaigns difficult.

“This shows workers are coming together,” said Jordan Flowers, a co-founder of ALU. “These workers want to see a union now, and they’re choosing ALU.”

The two organizing partnerships with ALU were first reported by More Perfect Union.

Workers organizing at a third facility in Garner, North Carolina are in discussions with ALU about partnering with the union, Ryan Brown, an Amazon warehouse worker involved in the labor campaign at the facility, told ABC News.

“We’re going to assist them 100%,” said Smalls, the ALU president and former Amazon warehouse worker. “Whatever they need: Resources, money, going out there.”

He acknowledged that the labor campaigns in Albany and Campbellsville remain in the “infancy stage.”

In a statement to ABC News, Amazon expressed its general opposition to union campaigns.

“Our employees have the choice of whether or not to join a union. They always have,” Amazon spokesperson Kelly Nantel said. “As a company, we don’t think unions are the best answer for our employees. Our focus remains on working directly with our team to continue making Amazon a great place to work.”

ALU, an independent union initially fueled by fundraising on a GoFundMe page, carried out a monthslong organizing campaign at the 6,000-employee warehouse on Staten Island that proved one of the most significant labor victories in the U.S. in recent decades.

After the union victory, Amazon filed objections with the National Labor Relations Board seeking to overturn the outcome, including allegations that NLRB officials showed a favorable bias toward the workers and that union leaders bribed colleagues in an effort to win their support. The ALU has rejected those claims. The NLRB hearings are ongoing.

In May, ALU lost a second union election at a neighboring warehouse on Staten Island. The partnerships with workers in Albany and Campbellsville mark the first labor campaigns announced by the ALU since the two union drives on Staten Island.

Matt Littrell, a warehouse worker involved in organizing at the warehouse in Campbellsville, told ABC News that employees want the company to address the grueling pace of the work and uncomfortable heat inside the building.

“The same issues come up time and time again, and they have for many years, yet management is very apathetic toward those,” he said.

The workers, who began organizing several months ago, were drawn to the worker-led nature of the ALU, he added.

“We wanted to go with a union made up of workers and people who understand our unique environment,” he said.

The organizing partnerships with ALU highlight the significance of the union’s victory, Rebecca Givan, a labor studies professor at Rutgers University, told ABC News.

“To prove that success is possible is huge,” she said. “The inspiration to stay and organize and fight to improve things is really significant.”

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(NEW YORK) — Elon Musk is terminating his $44 billion deal to buy Twitter, according to a new Securities and Exchange Commission filing.

“Mr. Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform'” and did not receive it, the filing stated.

Fake accounts have become a sticking point in Musk’s rollercoaster bid to acquire the social media platform, with the Tesla CEO previously threatening to end his agreement over concerns about the prevalence of bot and spam accounts

In the filing on Friday, Musk’s attorney claimed that Twitter “is in material breach of multiple provisions of that agreement” and appears to have made “false and misleading representations” when entering into the agreement.

Twitter stock is down about 6% in after-hours trading.

ABC News’ has reached out to Twitter for comment.

ABC News’ Joshua Hoyos contributed to this report.

This is a developing story. Please check back for updates.

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(NEW YORK) — The federal fraud case against the top executives of the failed biotech company Theranos posed an interesting tale of two different trials, according to ABC News’ Rebecca Jarvis.

Jarvis, the host and creator “The Dropout,” ABC News’ podcast that chronicled the case against its founder Elizabeth Holmes, spoke with “Start Here,” Friday following the conviction of Ramesh “Sunny” Balwani, the former president and COO of Theranos, on fraud charges.

A jury on Thursday convicted Balwani, Holmes’ former romantic partner, on 12 counts of fraud for his role in defrauding investors and patients.

The company claimed it could run any blood test using only a few drops of blood via its so-called proprietary technology. However, according to prosecutors, their product, a machine called “Edison,” could never run more than a dozen blood tests at a time.

Balwani joined Theranos in 2009, six years after Holmes created the startup, and quickly rose to be its president and chief operating officer.

Holmes, who faced 11 counts of fraud, one less than Balwani, was convicted on only four counts of fraud in January, which related to investors.

The feds originally charged Balwani and Holmes together, but their trials were later severed after Holmes revealed she may testify to abuse at the hands of Balwani. He denied those allegations.

Jarvis said Holmes taking the stand was a key factor in the different outcomes.

“[The abuse claims] did not come up at his trial, but for during [Holmes’] seven days of testimony, they were a big portion of what she talked about,” Jarvis told “Start Here.”

“The biggest difference is that he didn’t take the stand to say, ‘I didn’t do this,’ or…raise his own objections to the claims against him.”

Jarvis noted that after the federal government filed its charges against the duo, Balwani’s attorney initially told her, in 2018, this was a business failure and they were in it together. Things changed once they faced separate trials and evidence such as texts and e-mails that implicated that Balwani came to light.

“You think about a jury who is supposed to know nothing about any of their backstory, and they’re shown these things like…case pictures of her so much younger than him, supposedly having to rely on him for his expertise,” she said.

“You can imagine where the jury may have found that presentation more sympathetic than Sunny Balwani who had experience,” she said.

Holmes is scheduled to be sentenced in September and Balwani later this year. Both face a maximum sentence of 20 years in prison per count.

Holmes’s attorneys have filed an appeal and Balwani’s attorneys are expected to follow suit, according to Jarvis. However, Jarvis said legal scholars and other experts say those appeals are rarely successful.

However, the case will have a broader impact on the business world and how future start-ups present themselves to investors and customers, she said.

“You don’t get to run a successful business on what might happen in the future. You can’t tell investors what might happen in the future. You can’t tell patients that your product might someday be up to snuff when it isn’t,” Jarvis said.

For the full backstory on Balwani, Holmes and Theranos, listen to ABC News’ podcast “The Dropout.”

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(NEW YORK) — Amazon members are already primed to enjoy perks of speedy delivery and now, that can include food from hundreds of thousands of restaurants.

The food delivery service has teamed up with Amazon to offer Prime members a free, one-year Grubhub+ membership.

The new membership for U.S. customers includes unlimited $0 delivery fees from restaurants that participate on Grubhub nationwide, the companies announced in a press release.

“More than half (53%) of adults and nearly two-thirds (64%) of millennials admit that purchasing takeout and delivery food is ‘essential’ to the way they live, but only one-third (38%) of Americans report using third-party delivery companies like Grubhub at least some of the time,” the food delivery service reported.

Jamil Ghani, vice president of Amazon Prime, explained that the new feature for Prime members “is our way of saying ‘thank you.'”

“The value of a Prime membership continues to grow with this offer, and this year is shaping up to be a great time to enjoy the convenience, savings, fun and deliciousness that membership provides,” Ghani added.

Grubhub+ members will also get access to member-only perks and rewards. Members also enjoy a donation match on Grubhub+ orders through Grubhub’s Donate the Change program, which raised more than $25 million in 2021 alone, benefiting more than 20 charitable organizations.

This offer is available to Prime members all year long.

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