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(NEW YORK) — Jury selection for the trial of Theranos founder Elizabeth Holmes begins Tuesday in San Jose, California, following Holmes’s allegations of abuse against her former boyfriend and Theranos COO, Ramesh “Sunny” Balwani, that came out over the weekend.

Holmes is charged with wire fraud and conspiracy to commit wire fraud stemming from a “multi-million-dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients,” according to the Northern District of California United States Attorney’s Office.

The pair were originally charged together, but the trials were severed in January 2020 for a reason that was undisclosed until newly unsealed court documents revealed that Holmes alleged just seeing Balwani could trigger “debilitating PTSD symptoms.” Her team has also signaled that Holmes will likely be testifying at the trial, which would be hindered if Balwani were present.

One filing states that Holmes and Balwani “had an abusive intimate-partner relationship” and that Balwani had “psychological” and “emotional” control over Holmes, creating a pattern of “abuse and coercive control.”

The documents detail evidence that Holmes plans to introduce, including claims that Balwani controlled “what she ate, how she dressed, how much money she could spend, who she could interact with.” They allege Balwani “monitored her calls, text messages and emails and was physically violent — throwing hard, sharp objects at her, restricting her sleep and monitoring her movements.”

“The defense made this argument that Elizabeth has suffered so greatly at the hands of Balwani … and that therefore she couldn’t even maintain her composure physically at the trial. That’s a pretty devastating allegation to me,” criminal defense attorney Caroline Polisi told ABC News’ Rebecca Jarvis on “The Dropout: Elizabeth Holmes on Trial.”

ABC News reached out to Balwani and his counsel, but requests for comment were not returned.

Back in December of 2019, Holmes’s team shared that they intended to introduce expert evidence from clinical psychologist Dr. Mindy Mechanic, who specializes in the psychological consequences of violence against women. Her testimony will concern the alleged abuse Holmes claims to have suffered at the hands of Balwani. Court documents show that Mechanic evaluated Holmes for 14 hours and interviewed her parents and brother.

Balwani’s lawyer Jeffrey Coopersmith has called Holmes’s allegations “salacious and inflammatory.” He said the claims are “deeply offensive to Mr. Balwani, devastating personally to him.” Balwani denies all allegations of abuse.

One former Theranos employee told ABC News he finds the allegations hard to believe given what he witnessed at the company. “Did I see any of the alleged abuse toward Elizabeth? No. In fact he seemed to defer to her in public,” said Kevin Hunter. “And remember, when push came to shove, she fired him.”

Hunter, a lab consultant who worked with Walgreens to vet Theranos technology, also said it seemed clear to him that Holmes was in charge.

“Sunny [Balwani] was a distant second … she came up with the plans and the strategies and he helped execute them. He was the bad guy, but she ran the meetings. He rarely participated unless it had something to do with IT. … It was clearly the Elizabeth show. There’s no question about it,” Hunter told Jarvis on “The Dropout: Elizabeth Holmes on Trial.”

Legal experts say that the prosecution will be able to introduce evidence of Holmes’s behavior before Balwani joined the company and after leaving Theranos.

“They are really going to have to make an effort not to be perceived as victim blaming,” Polisi said, adding that the prosecution needs to acknowledge the alleged abuse inflicted on Holmes, “while simultaneously really maintaining their argument that it did not negate her state of mind, that she still knew that she was misleading investors.”

Holmes’s defense team fought to keep the documents sealed until after a jury was selected because of the anticipated media coverage, but the judge presiding over the case, United States District Judge Edward Davila, ultimately ruled it appropriate to unseal ahead of jury selection.

Approximately 200 potential jurors have filled out jury questionnaires from both the prosecution and the defense prior to selection. Both sides must agree on 12 jurors and five alternates.

Davila heavily edited the questionnaire originally proposed by the defense, cutting it nearly in half from 45 pages to 28 pages, according to court filings. Many of Davila’s changes were related to the specificity with which the defense was asking potential jurors about their media habits, court filings said.

For example, the defense originally presented potential jurors with a list of 46 different periodicals and magazines, which the judge removed.

“Rather than give them a list, I’ve taken and asked them to take the affirmative duty to inform us, what do you read? What do you watch? What do you listen to?” Davila explained in a pre-trial hearing in June.

Despite initial fears from Holmes’ defense team regarding the ability to find unbiased jurors due to the extensive media coverage of Holmes, more than half of the prospective jurors who have filled out questionnaires said they have never heard of Holmes, according to the government during a pre-trial hearing.

Potential jurors will be ushered in 50 at a time, and voir dire or jury examination will be held in three separate sessions.

“Jury selection really is one of the most, if not the most, important parts of the trial, because it only takes one juror to get that hung jury or get a not guilty verdict,” Polisi said.

“They [the defense] don’t want to let anybody in who may harbor feelings of resentment or ill will toward Elizabeth Holmes just based on reporting that they’ve read,” she said. “Their ideal person, perhaps is somebody who either A. doesn’t know much about this story, which is going to be hard to find, or B, actually feels some sense of fondness towards Elizabeth Holmes or has something in common.”

Many potential jurors have already been dismissed because of the amount of information they’ve consumed about Holmes. Her rise and fall captivated the country. She was the Stanford dropout who claimed to have created revolutionary blood testing technology that was poised to change the future of health care. Her company, Theranos, was once valued at nearly $10 billion, which, at the time, made her the youngest self-made female billionaire. She graced the covers of magazines, spoke at conferences and appeared on most major news outlets. But Holmes faced a massive fall from grace when insiders within the company exposed that the technology didn’t work.

It’s been more than three years since Holmes was charged with multiple counts of fraud, which could send her to prison for decades if convicted. Throughout it all, she has maintained her innocence and seemingly has been living life to the fullest.

She is married to hotel heir William “Billy” Evans, and the pair welcomed their first child, William Holmes Evans, on July 10. The announcement of her pregnancy during a pretrial hearing in March delayed her trial, which was previously delayed due to the pandemic, for the fourth time.

But now, 1,266 days since being charged, Holmes is going to trial.

Holmes and her counsel did not respond to ABC News’ repeated requests for comment.

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(NEW YORK) — Shake Shack’s sweet and creamy blended treat lineup is expanding in a new collaboration with New York City-based dessert destination — Milk Bar.

The two brands teamed up to blend Shake Shack’s frozen custards with Milk Bar’s modern desserts to add two new shakes to the menu.

Christina Tosi, Chef and Founder of Milk Bar told Good Morning America she happily jumped at the opportunity “to make milkshake dreams come true with our BFFs at Shake Shack.”

One is a chocolate birthday cake shake featuring Milk Bar B’Day crumbs, the gourmet version of funfetti cake, and Milk Bar B’Day frosting hand-spun with chocolate cake frozen custard.

The other is a cornflake chocolate drizzle shake made with Milk Bar’s signature Cornflake Crunch, hand-spun with vanilla frozen custard and topped with Milk Bar chocolate fudge drizzle and mini marshmallows.

“We settled on our hand-spun shakes as the muse, and then Christina and her team at Milk Bar did what they do so well – crafting fun and delicious takes on some of their most legendary baked goods, but in our frozen custard,” Shake Shack culinary director Mark Rosati said. “We had a great time working on this and can’t wait for our fans to stop by, order one or two shakes, and enjoy!”

The shake duo will hit menus on Sept. 3 at Shake Shack locations nationwide and for pickup and delivery on Shake Shack’s website or app. Fans who use the Shack App can snag exclusive early access starting Aug. 31.

To sweeten the deal, Shake Shack announced that it will give away free shakes to lucky fans in honor of their birthdays. Every Friday in September, customers can check Shake Shack’s Instagram Stories where the company use its B’Day Randomizer feature to select a few random dates. If your birthday is selected and you’re one of the first 50 followers to slide into Shake Shack’s DMs, the brand will send a discount code to redeem on the app for a free shake.

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(WASHINGTON) — Imagine buying a new car, at your home computer, in 19 minutes. That’s what MINI, the funky British marque, says is now possible.

The brand recently introduced MINI Anywhere, a pilot program in California where MINI enthusiasts can choose their vehicle, apply for financing and sign all necessary paperwork in under 30 minutes. The majority of credit applications are approved instantly, according to MINI executive Patrick McKenna.

MINI Anywhere is headed next to Florida and Texas and a nationwide rollout to MINI’s 115 dealers is planned by year-end.

“This definitely is the future,” McKenna, who oversees MINI’s marketing and product teams, told ABC News. “We’re making dealers digitally savvy in the marketplace.”

The program was designed to make the car buying process easy: Shoppers can see what the car looks like in their driveway or parking garage via augmented reality. Virtual test-drives and walk-arounds are possible too, said McKenna, who helped spearhead the program last July.

Plus, buying a car with a few clicks of a button is not too different from shopping for groceries on Amazon, McKenna noted.

“The younger generation is fine doing a transaction online without driving a car,” he said.

Karl Brauer, executive analyst at iSeeCars.com, said many consumers would be happy to eliminate the dealership experience — the haggling, the long hours — entirely. The pandemic forced shoppers to be independent and choose vehicles without sales assistance, a scenario that has been largely positive and beneficial, he said.

“We have a new awareness of how much easier it can be to buy a car online with minimal to no physical requirement to visit a dealership,” he told ABC News. “Digital options existed for years. Automakers were ready. The pandemic pushed it along.”

There are drawbacks, of course. Higher prices. Zero negotiating. The inability to see or touch the new vehicle in person. Even impulsive decisions.

“You could end up with buyer’s remorse,” Brauer explained. “Car purchases can be highly emotional and it’s not wise to make a big financial decision based on emotion.”

McKenna acknowledged MINI Anywhere may not be the cheapest way to buy a car. The program could also potentially impact MINI’s sales associates, or “motoring advisers” in MINI speak. But dealers can “reinvent” the delivery, he said.

“They have a chance to build [a customer] relationship by making it a personal, exciting delivery — a ‘wow’ experience,” he explained.

Carvana, an online dealer for used cars, has sold more than 750,000 vehicles since its launch in January 2013. Last quarter it moved 107,815 retail units, an increase of 96% year-over-year. Second-quarter revenue topped $3.3 billion, a rise of 198% YoY.

“For most customers, buying a car online is simpler and a better experience,” Eric Garcia, CEO of Carvana, told ABC News. “The biggest hurdle for online is establishing trust.”

Carvana gives customers seven days to return a vehicle if they’re not completely satisfied. The return rate is the mid- to high-single digits and more than half of returns are swapped for another vehicle, Garcia noted.

“We found undoubtedly that customers are ready and willing to buy cars this way,” he said. “That’s what’s driven our growth year after year. COVID accelerated people’s willingness to try new experiences.”

And the test-drive that’s missing when buying a vehicle online? Not a huge factor in the buying decision, according to Garcia.

“Consumers don’t even know what they are trying to learn in a test-drive,” he said. “People don’t have a great sense of how cars feel differently. Consumers are looking for a deal, a good price and a seamless experience.”

Lincoln, like MINI, has been vocal about sending consumers online to buy its SUVs. Not every automaker though is ready for the digital shift. Genesis, the 6-year-old Korean luxury brand from Hyundai, has been ramping up its dealership presence in the U.S., building new “permanent residences” in various U.S. cities and markets to boost sales.

“Many people still want to go into a dealership and compare vehicles and test-drive them and shop at their convenience,” Tedros Mengiste, executive director of sales operations at Genesis North America, told ABC News. “You can’t buy a [Genesis] car online yet but can send exact specifications to a dealer.”

Mark Takahashi, senior reviews editor at Edmunds, has not heard of any online car buying horror stories. Going to a dealership can be “an ordeal,” he argued, adding, “There really aren’t any disadvantages to buying online.”

“Dealers are trying to do better … but it’s still unknown if the dealer model will survive,” he told ABC News. “I don’t think shoppers are going back to dealerships 100%.”

Brands that tout their personalized service and intricate customizations can also move the entire process online, Takahashi said.

“This model can apply to every automaker,” he said. “Online shopping is getting more ubiquitous and consumers are trusting it a lot more for larger purchases. But there will always be holdouts who want to see the car and samples in person.”

MINI of San Diego formally launched the MINI Anywhere program on Monday after a “dress rehearsal” and is busy notifying current clients about the online tool. So far one customer has purchased a MINI online with the help of Lisa Mitchell, the dealership’s finance director.

“We did it together [on Zoom] and it took about 45 minutes,” she told ABC News. “We’re letting guests be more empowered now — they get to do it their way. I am excited.”

Whether it’s via a computer screen or in person, Brauer applauds the moves automakers are implementing to improve the shopping experience.

“Buying a car should be one of the most enjoyable things you do,” he said.

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(NEW YORK) — Rosie Huntington-Whiteley is now a beauty brand founder.

The model and actress recently announced the launch of Rose Inc., her cosmetics and skin care brand.

The brand, which has been in development for two years, is focused on sustainability and high-performance, non-comedogenic formulations, Huntington-Whiteley said.

“I wanted to create products with innovative clean ingredients, sustainable solutions and high-performance, non-comedogenic formulations. I have such a deep love and passion for the beauty industry that this feels like an organic next step for me in my career,” Huntington-Whiteley said in an interview with Good Morning America.

Huntington-Whiteley says starting in the modeling industry at 16 gave her the education she needed to create her own products.

She partnered with biotechnology company Amyris to help provide ingredients that are both good for people and the environment.

“There’s a new demand for science-driven brands that deliver real results and guarantee an eco-friendly approach,” Rose Inc. CEO Caroline Hadfield said.

The brand is launching with the “Modern Essentials” collection including products like brightening serum to hydrating concealer.

All of the products are 100% vegan and cruelty-free.

“Confidence and embracing one’s own beauty is definitely a journey. It has always important to me to offer products that make people feel good, feel beautiful and confident,” Huntington-Whiteley added.

You can shop items from the new beauty brand below now available at Sephora.

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(NEW YORK) — Lisa Frank and Orly have teamed up for a limited edition launch that might leave you saying, “nailed it!”

The whimsical, colorful school supplies brand and cruelty-free nail polish label have joined forces to launch exciting nail wraps, toppers and polishes on Aug. 29.

The collection is what your favorite Lisa Frank dreams are made of and features inspiration from some of the brand’s favorite characters such as Forrest, Hunter and Zoomer & Zorbit.

The Lisa Frank x Orly collection includes not one, but two nail lacquer trios, four nail wraps and one topcoat.

There’s also a great confetti topper that can be used as a unique finish to your manicure or can be worn alone for a fun look. It also has Orly’s signature gripper cap that features an ergonomic design for easy opening and a soft grip.

“This collaboration with Lisa Frank was a natural fit as we’re two longstanding brands who bring happiness and excitement with color to our fans,” said Orly’s vice president of business development Tal Pink. “We worked with the Lisa Frank team on every design, every detail, and every shade. Lisa Frank’s commitment to quality is uncompromising and we can’t wait for fans to create their own enchanting nail art.”

If you are enthused to snag the collection before it’s gone, it will be available exclusively on Ulta Beauty’s website and stores in just a few short days.

“Lisa Frank, Inc. is thrilled to expand its beauty assortment with a stunning new nail line in partnership with Orly,” said Forrest Green, head of brand at Lisa Frank, Inc. in a statement.

He continued, “We listen to our consumers at every step of the way, and our team is deeply committed to creating products that our fans are proud to own. As always, we hope to empower individuality and creative expression through our merchandise.”

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(NEW YORK) — Iconic cosmetics brand Fashion Fair has announced it will be making a long-awaited relaunch in September.

Initially founded in 1973 by American businesswoman Eunice Johnson with people of color top of mind, the company went on to become a pioneering makeup brand — producing everything from inclusive foundations to rich color cosmetics for deeper skin tones.

One of Fashion Fair’s original models, Pat Cleveland, appeared in a short clip revealing the brand would be returning next month.

Koai Martin proudly rocks natural hair in new headshots and shared on LinkedIn. Her post continues to inspire many others.

The updated version of Fashion Fair Cosmetics will include modernized vegan makeup as well as skin care.

Key products include lipstick, stick foundation, powder foundation, priming serum, loose powder and a pressed powder. The formulations include a mashup of clean, naturally derived ingredients such as vitamin C, vitamin E, turmeric, bamboo powder and green tea extract as well.

Prices start at $26.

Along with the relaunch of the brand, Fashion Fair also recently named actress Kiki Layne, known for her roles in “If Beale Street Could Talk” and “Native Son,” as the beauty label’s brand ambassador as well as legendary makeup artist Sam Fine, who has glammed up everyone from Queen Latifah to model Iman, as its global makeup ambassador.

Layne posted the news on Instagram, saying how “incredibly excited” she is, alongside a striking Fashion Fair campaign photo of herself wearing bronze-toned glowing makeup.

Fashion Fair will launch exclusively with Sephora online on Sept. 1 and in select stores on Sept. 9.

Through the years, Fashion Fair said it has contributed more than $55 million back to the Black community and plans to motivate and support the next generation of minority entrepreneurs as well as give toward projects important to the community.

“I feel like Fashion Fair is putting her crown back on,” Fashion Fair CEO Desiree Rogers told Vogue.

She continued, “The queen may have taken a little break, but she’s putting on her gown and her high heels, and sitting back in that throne. So watch us reign.”

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(NEW YORK) — Consumer demand has soared for some grocery store products and retailers are scrambling to keep up.

According to The Wall Street Journal, some grocers are struggling to keep items in stock. From kid-favorite frozen waffles to certain beverages and Lunchables, the fight to keep store shelves filled with many popular brands is real.

“In the 50 years I’ve been in the business, we’ve never seen the markets like they are today. They’re wild,” Stew Leonard, CEO of his eponymous Northeast-based grocery chain, told Good Morning America.

Kraft Heinz said in a statement it is “seeing an all-time high demand for our brands.”

Kraft said it’s seen “double-digit growth for the first time in five years.”

The company told ABC News that it has increased production to meet demand and is “working fast and furiously to get more product into the hands of consumers as soon as possible.”

In the meantime, as demand outpaces supply for some items, Leonard said his stores have tried to come up with new solutions.

“Lobster is probably at a record high right now as far as the price per pound and lobster rolls are a big hit,” he said. “One of the things we’ve done is make a shrimp roll right now.”

According to the Food Marketing Institute, a national trade association, demand pressures have yet to go back to pre-pandemic levels. The food and retail organization told ABC News that a combination of factors such as shortages of materials and ingredients, combined with labor and transportation, “will continue to be disruptive and will create an uneven supply chain recovery, but we ask that shoppers hold on as we continue to recalibrate.”

Market research firm IRI, which examines consumer, shopper and retail market intelligence, found in its data that monthly grocery store sales are up 3% from last year and nearly 14% from August 2019.

The change, according to IRI, comes down to the simple factor that consumers have been eating at home more and out less.

“So many behaviors changed during the pandemic. And that’s kind of what we’re experiencing. There’s a lot more confidence in the kitchen,” Joan Driggs, vice president of content and thought leadership for IRI, told GMA. “We have a whole new generation of cooks out there who like it, they get more of exactly what they want, they take great pride in it.”

Driggs is telling consumers there’s no need to panic shop.

“People are able to go and fulfill their list — I don’t think we’re going to go back to that big stop, stock up panic shopping that we experienced in the spring of 2020,” he said.

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(NEW YORK) — For people who were fortunate enough to be employed during the coronavirus pandemic, the past 18 months of lockdown have provided one silver lining, a boon to their wallets.

With dining out and happy hours cut to a minimum and commutes gone for people who could work remotely, the pandemic inadvertently became a money saver for people lucky enough to do so.

As restaurants, stores and beauty salons reopen and with some returning to the office, the urge to spend is back.

With the economy on the rebound, Americans are now spending an average $765 more a month than they did this same time last year, according to the MassMutual Consumer Spending & Saving Index.

Millennials and Gen Z are spending even more, dishing out an average of $1,016 more per month compared to last summer, with the majority of the money going toward travel and dining out, according to the index.

“Now, with the ability to travel and go out more freely, [people are] making big plans and possibly spending more than they normally would to ‘make up for lost time,’ as they see it,” Farnoosh Torabi, editor-at-large of CNET Personal Finance and host of the “So Money” podcast. “There may be a tendency to go overboard.”

On the flip side, people who struggled financially during the pandemic — a large percentage of the U.S. population — may have a harder time keeping up with increased expenses, according to Torabi.

Just over 50% of U.S. households have any type of savings account, according to an analysis released this month by Consumer Federation of America, an association of non-profit consumer organizations.

“People who suffered financial losses in the pandemic are likely having a hard time budgeting, especially in the face of inflation and rising costs,” she said. “Prices on everything from coffee to cars have gone up in recent months. There’s definitely some sticker shock going on.”

Here are five tips from Torabi to help find your footing financially in this next stage of the pandemic.

1. Keep your emotions separate from spending.

“It’s important to be mindful of your emotions related to spending and saving right now,” said Torabi. “The pandemic was traumatic and coming out of this experience, many of our emotions will linger.”

“Making financial decisions in a highly emotional state is never wise. So take time to reflect and reevaluate your goals and values, which may have changed dramatically over the course of the pandemic,” she said. “Get clear on any lifestyle changes you may want to make, the relationship or career shifts you may newly desire, and from here, start to design a new financial roadmap for yourself that’s aligned with all of that.”

“There’s no sense in rushing to make financial choices that don’t match your goals,” added Torabi.

2. Prioritize building your savings.

Torabi advises saving money as a top priority, even over paying debt.

“The pandemic woke many of us up to the fact that life is fragile and it can take very unexpected turns, and along with that, it reminded us of the importance of having a healthy savings cushion that can help us ride out several months of unemployment or financial loss,” she said. “That’s first and foremost.”

When it comes to prioritizing savings over debt, Torabi explained, “That may sound controversial to some, but if you are starting at $0 in savings, it’s important to dedicate as much of your paycheck as possible — and quickly — towards having a minimum 6 months of your bare-bones living expenses reserved in a savings account.”

“Pay the minimums on your debts every month, of course. But contribute any extra income towards your emergency savings first before any other financial goal,” she said. “Start small if you have to, but just start.”

Torabi also recommends making your savings payments automatic, like having it taken out automatically from your paycheck.

“When you earn a lump sum of cash for a holiday, birthday or tax refund, funnel it towards savings first, all until you save a minimum six months worth of your necessary monthly living expenses,” she said, also suggesting the app Digit, which helps users save small amounts of money, like $5 here and there.

3. Spend money on needs, not wants.

“Prior to the pandemic, we may have been spending money on items that didn’t really fulfill us or create meaningful value, things like subscription services or fancy clothes,” she said. “But we learned again what matters most like our affording health care, investing in a support system in your life and investing in experiences that create memories, as opposed to shiny objects that lose their luster after a while.”

4. Don’t spend to ‘catch up’ with people on social media.

“Pace yourself and be true to your financial reality, not your friends’ or what you see on social media that’s pressuring you to spend,” recommends Torabi. “Honestly, social media can be a costly influence, so if you find yourself triggered to spend because of ads or friends’ experiences on Instagram, step away from the app for a while. And take time to get clear on your personal goals.”

“From there, take it month by month,” she said.

5. Reverse-engineer your money goals.

“Think of creating a ‘new normal’ way of life for yourself that takes into account all the lessons and learnings of the last 18 months,” said Torabi. “If there’s an experience you really want to afford, then create a plan and start saving now. Reverse-engineer it. If you start saving a little today, you have a far better chance of achieving your goal in good time.”

Torabi said a similar approach can be taken when it comes to budgeting for eating out.

“If it helps, create financial ‘rules’ for yourself related to eating out like, ‘I will pack lunch three out of five days and leave two days of the week for eating out,'” she said. “Or reserve a budget ahead of time for lunches and coffee so that you can better plan for these expenses and not feel guilty.”

“I’d never say to someone, ‘Don’t have the latte,'” she added. “Instead, figure out what plans or trade-offs you can arrange to afford that more comfortably.”

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(CALIFORNIA) — The California ride-hailing driver suing over the controversial Proposition 22 law said he can “breathe a little easier” after a judge ruled it unconstitutional, but an ongoing legal battle still looms as industry giants ready an appeal.

Proposition 22 — a ballot measure backed by Uber, Lyft and others — defines rideshare and related gig workers as independent contractors instead of employees, a distinction providing them less labor protections under state law.

Corporations spent more than $200 million in support of the measure, according to The Associated Press. Proposition 22 was approved by California voters last November, winning 58% of the vote.

Last Friday, however, Alameda County Superior Court Judge Frank Roesch ruled that Proposition 22 was unconstitutional and unenforceable after a lawsuit was brought forth by three drivers and the Service Employees International Union.

“The court ruling isn’t just about us drivers or Uber or Lyft,” Hector Castellanos, a full-time rideshare driver and one of the plaintiffs on the suit, told reporters during a call organized by the SEIU on Monday. “To me, it also means that corporations can’t spend their way out of following the law.”

“There’s a lot to celebrate, and now I feel like I can breathe a little easier,” Castellanos added. “Sometimes it’s hard to find the words to describe how much this means to me. But one thing for sure is that I’m excited to share this news with more drivers and continuing to speak out and to stand up for our rights.”

Fellow rideshare driver and plaintiff Michael Robinson added that he feels “relieved.”

“Prop 22 was deceptively written by gig corporations to protect their profits,” Robinson said during a press conference organized by the SEIU in California. “I want others to remember that and the court’s ruling as these same gig corporations try to take copy-cat laws on the road.”

“I’m happy that the court sided with drivers, but the fight is far from over,” Robinson said. “We’re going to keep putting a spotlight on how the gig corporations are putting their profits above their workers.”

“We won’t stop until we’re treated with the dignity and respect we deserve,” he added.

Cherri Murphy, a rideshare driver from Oakland, California, told ABC News Monday that she worked at Lyft for three years before she stopped as the pandemic hit last spring because she was worried about risking her and her family’s exposure to the virus. She still works as an organizer fighting for the rights of rideshare drivers in the state.

“This court ruling that Proposition 22 is unconstitutional is a major victory to all drivers across California,” she told ABC News Monday. “What it indicates is that this fight is not over, and it’s a major step of building a more powerful movement for protecting app-based drivers.”

Murphy said the law “disproportionately hurt African Americans, people of color, immigrants and low-wage workers,” and dubbed it a “corporate power grab.”

Lyft referred ABC News’ request for comment to Geoff Vetter, a spokesperson for a group dubbed the Protect App-Based Drivers & Services Coalition that is backed by Uber, Lyft and others and was a defendant in the SEIU suit.

“We believe the judge made a serious error by ignoring a century’s worth of case law requiring the courts to guard the voters’ right of initiative,” Vetter said in a statement. “This outrageous decision is an affront to the overwhelming majority of California voters who passed Prop 22.”

“We will file an immediate appeal and are confident the Appellate Court will uphold Prop 22,” Vetter added. “Importantly, this Superior Court ruling is not binding and will be immediately stayed upon our appeal. All of the provisions of Prop 22 will remain in effect until the appeal process is complete.”

Vetter also shared a comment from Jim Pyatt, a California app-based rideshare driver who supported Proposition 22.

“This ruling is wrong and disrespectful to the hundreds of thousands of app-based rideshare and delivery drivers like me who actively supported Prop 22,” Pyatt stated.

“It’s clear that the special interests behind this frivolous challenge are attacking the overwhelming will of the voters and the decisive wishes of drivers who fought to remain independent,” he added.

An Uber spokesperson told ABC News that it plans to appeal, and that the measure will remain in effect pending the appeal.

“This ruling ignores the will of the overwhelming majority of California voters and defies both logic and the law. You don’t have to take our word for it: California’s Attorney General strongly defended Proposition 22’s constitutionality in this very case,” company spokesperson Noah Edwardsen said in a statement.

“We will appeal and we expect to win,” Edwardsen added. “Meanwhile, Prop. 22 remains in effect, including all of the protections and benefits it provides independent workers across the state.”

Murphy told ABC News that Uber’s announcement does not come as a surprise.

“It doesn’t surprise me but yet it disappoints me,” Murphy said.

Scott Kronland, an attorney representing the SEIU in the suit, said during a call with reports Monday that Judge Roesch’s ruling is “solid” and “well-reasoned.”

“There were several ways in which the drafters of the initiative overreached and included provisions that conflict with our state constitution, which is the higher law, and therefore we expect that the ruling will be upheld on appeal,” Kronland said.

Alma Hernandez, the executive director of the SEIU California, added that she hopes the judge’s ruling will send a “clear” message to states elsewhere that try to enact similar legislation.

“When you’re going to try to go to the ballot to purchase your own law to deny workers basic rights, there will be a fight, and the law will be continued to be upheld by our courts,” Hernandez said.

“I know that this is a national agenda that these companies have tried to run across the country, and they’re trying to mimic Prop. 22 across in other states, but it serves as a warning that these fights will be challenged,” she added. “And they are not on the right side of history.”

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(NEW YORK) — In the exploding realm of cryptocurrencies, a new line of financial products has emerged that has caught the attention of both investors and regulators — so-called “stablecoins,” which are backed by cash or another reserve asset.

Stablecoins seek to provide the best of both worlds: the stability of a traditional government-backed currency as well as the privacy and convenience offered by crypto transactions. They are often marketed towards investors who may not have the stomach for the volatility associated with Bitcoin, Ethereum and other popular cryptos — which have been known to see-saw widely in value on a day-to-day basis.

The existing stablecoins market is worth some $113 billion, U.S. Securities and Exchange Commission Chair Gary Gensler said earlier this month during a speech at the Aspen Security Forum. He added that in July, nearly three-quarters of trading on all crypto trading platforms occurred between a stablecoin and some other token.

Even social media behemoth Facebook is trying to get in on the action, seeking to launch a stablecoin-like project of its own of its own after its initial Libra cryptocurrency efforts fizzled.

As their popularity rises, stablecoins have also recently drawn new scrutiny from authorities and regulators. Federal Reserve officials mulled over the threats posed by “new financial arrangements such as stablecoins” in a recent meeting, according to a readout released earlier this week, raising concerns over the lack of transparency and regulations.

Treasury Secretary Janet Yellen last month also called on regulators to “act quickly” in forming new regulatory frameworks for stablecoins, raising alarms over their “potential risks to end-users, the financial system, and national security.”

Here is what experts say investors should know about the novel class of cryptos dominating headlines in recent weeks.

What are stablecoins?
Stablecoins are essentially cryptocurrencies that are backed by a reserve asset — usually a traditional currency such as the U.S. dollar. The valuations of stablecoins are therefore supposed to be less volatile than other digital currencies, because they are pegged directly to a fixed, non-virtual currency.

“Think of stablecoin as a cryptocurrency without, or with limited, volatility. That is the best way to think about it,” Haran Segram, a professor of finance at New York University’s Stern School of Business, told ABC News, adding they are sometimes looked at as “the bridge between fiat currencies and cryptocurrencies.” Fiat currencies are traditional currencies like the dollar, backed by the government.

“Stablecoins are backed by other central bank currencies,” Segram explained.

Bryan Routledge, an associate professor of finance at Carnegie Mellon University’s Tepper School of Business, added that this makes stablecoins more useful as an everyday currency.

“For example, the price of Bitcoin is just stunningly volatile,” he told ABC News. “That makes it harder to use as a currency.” In 2021 alone, Bitcoin’s value has seen swings of 100% — starting the year at a price of less than $30,000, reaching a peak of over $63,000 in April, before receding back to the $30,000 mark in July. As of Friday, Bitcoin was trading at a little over $46,000.

“When I tell you a latte cost $2.50, you know what that means — but if I quote a price of a latte in Bitcoin, it’s just really hard to keep track of because one day it’s the equivalent of $2.50, the next day it’s equivalent to $25,” he added.

Pegging cryptocurrencies to a fixed exchange rate relative to the U.S. dollar, as stablecoins attempt to do, makes them “more useful as a currency,” according to Routledge.

‘It’s a stablecoin because they call it a stablecoin’
While this may sound like an overall positive development for everyday investors interested in crypto, experts and authorities have warned of lurking risks associated with the largely unchecked stablecoin market.

Segram noted that one of the most popular stablecoins out there is Tether, which claims to be backed one-to-one to the U.S. dollar.

“The issue with that is some research was done into that, and then actually they found that one unit of that stablecoin is backed by .74 of the U.S. dollar,” Segram said. “So things like that, what people put out saying it’s a stablecoin, it might not be truly a stablecoin.”

“That’s something that investors and your audience should be aware of,” he told ABC News. “Because people don’t know exactly what’s happening in the background, and I would really encourage your readers to be aware of that.”

New York Attorney General Letitia James’ office led an investigation into Tether that said there were periods of time when Tether did not have access to banking and “held no reserves to back tethers in circulation at the rate of one dollar for every tether, contrary to its representations.” As part of a settlement reached with James’ office, Tether is barred from doing business with New Yorkers but admitted no wrongdoing and pledged increased transparency. The Hong Kong-based entity still maintains on its website, however, that Tether tokens are “100% backed by Tether’s reserves” at a conversion rate of one Tether token equaling one U.S. dollar.

“Under the terms of the settlement, we admit no wrongdoing,” Tether said in a statement on its website in response to the investigation. “The settlement amount we have agreed to pay to the Attorney General’s Office should be viewed as a measure of our desire to put this matter behind us and focus on our business.” The company added that it is pleased by the “loyalty” customers have shown, saying that the market capitalization of tethers grew from $2 billion to an excess of $34 billion during the past two years, while the investigation was ongoing.

“Tether is complicated because it’s an international business,” Routledge added in regards to who regulates it. “Cryptocurrencies, one of their either charms or weak points, is they don’t sort of fall under anybody’s direct jurisdiction.”

For most stablecoins, “it’s a stablecoin because they call it a stablecoin,” Routledge added.

Despite assurances of cash reserves, there is a risk that some stablecoins might operate under the assumption that the likelihood of having to liquidate all at once is slim if confidence remains high.

“If everybody thinks Tether is going to be a stablecoin, it will work as a stablecoin and the few people that need to exchange it at the ‘Tether store,’ to be colloquial, would do that,” he said. “The trouble with that policy is that you can get what the foreign exchange economists would call like a speculative attack, which is that we don’t think Tether has enough money, and I think everybody thinks that, they’re all going to show up and demand those currencies — It’s a bit like a run on the bank.”

“That’s what makes it really hard to stabilize, because your credibility as a stablecoin is the thing that makes it stable, and that’s inherently flighty,” he said.

Why the Fed and Yellen are so concerned about stablecoins
Yellen’s calls for quick action on creating regulatory frameworks for stablecoins have been echoed by other lawmakers.

Stablecoins were also recently debated by Fed officials, who “highlighted the fragility and the general lack of transparency associated with stablecoins,” at their most recent Federal Open Market Committee meeting. “The importance of monitoring them closely, and the need to develop an appropriate regulatory framework to address any risks to financial stability associated with such products.”

Segram said that while stablecoins can “regulate themselves to some extent by being transparent with the public, I think Yellen is calling for more top-down regulations rather than let it be voluntary.”

This could mean having the reserve currency kept somewhere independent, or having claims be regularly audited, he added.

Segram added that the Fed, meanwhile, might have other concerns around stablecoins’ growth.

“If stablecoins become popular, the central bank loses its control,” Segram said, noting that there have been discussions of stablecoin-like “Central Bank Digital Currency” to be issued by the Federal Reserve.

A Central Bank Digital Currency would give the Fed more control “over how we manage demand, supply and all other means,” Segram said.

Routledge added that the Fed may also have worries about a “banking panic” situation if a lot of assets are flowing through a specific stablecoin.

“If for whatever reason that stablecoin has a shock to it — that can be a systemic event to the financial system,” he added. “That is what’s on the Fed’s radar.”

SEC Chair Gensler, meanwhile, signaled a regulation crackdown could be looming during his remarks earlier this month in Aspen.

Gensler said the use of stablecoins on crypto trading platforms “may facilitate those seeking to sidestep a host of public policy goals connected to our traditional banking and financial system: anti-money laundering, tax compliance, sanctions, and the like.”

“This affects our national security, too,” he added. Gensler said he looks forward to working with regulators and lawmakers on these matters.

Despite the risks, Segram sees cryptocurrencies as the future, which may be in part why regulators are raising alarm bells and why there is so much discussion over a potential central bank digital currency. Major U.S. companies including Amazon and Walmart have recently announced they are hiring cryptocurrency experts, and a growing number of firms have started accepting cryptos as a form of payment.

China’s central bank has already launched its digital Yuan, he added, saying that the U.S. most likely will at some point in if it does not want to lose its status as the “reserve currency of the world.”

“If a stablecoin is issued by a private authority, it is not 100% fail-proof,” he said. “In a democracy like ours, or other democracies where there’s some political stability and currency stability, a central bank digital currency might be the way to go.”

“I think of stablecoin sort of as a link between fiat currencies and cryptocurrencies, this takes that to another level,” he said.

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