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For good reason, much attention was devoted to the Supreme Court’s oral arguments on Monday, over government pressure on social media companies to suppress speech that officialdom doesn’t like. The same day, though, justices heard arguments in another important case involving free speech principles violated when New York officials leaned on financial institutions to deny services to the National Rifle Association. Importantly, both cases involved “jawboning,” the use by government of threats to improperly coerce compliance.

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Δ When Communication Becomes Coercion

As Reason’s Jacob Sullum ably summarizes, arguments in Murthy v. Missouri involve “dueling interpretations of the Biden administration’s interactions with social media platforms regarding content it viewed as dangerous to public health, democracy, or national security,” with plaintiffs arguing that “those private contacts, combined with public statements condemning the platforms’ failure to suppress ‘misinformation,’ amounted to government-directed censorship.”

At stake is the point at which efforts to persuade private companies they ought not offer platforms to certain speakers morph into “nice business you got there; it’d be a shame if something happened to it.” Did officials cross the line when they badgered tech firms to muzzle voices skeptical of lockdowns, COVID vaccinations, and election integrity? If you’ve followed the Twitter and Facebook Files, you know there’s significant evidence they did, though it remains to be seen if Supreme Court justices agree.

Remarkably, the evidence of improper strong-arming appears even clearer in National Rifle Association of America v. Vullo. In that case, the NRA, joined by the ACLU, alleges that Maria Vullo, former Superintendent of the New York State Department of Financial Services, abused the power of her position to punish the gun rights organization for its political positions.

“Vullo met with executives at Lloyd’s of London to discuss her views on gun control and to tell them she believed the company’s underwriting of NRA-endorsed insurance policies raised regulatory issues,” according to Abby Smith of the Foundation for Individual Rights and Expression (FIRE). “She told them Lloyd’s could ‘avoid liability’but only if the company told its syndicates to stop underwriting their insurance policies, and joined her agency’s ‘campaign against gun groups.'”

There was nothing subtle about the arm-twisting. In 2018 I wrote about guidance letters New York regulators sent to banks and insurance companies, at the behest of then-Gov. Andrew Cuomo, cautioning “regulated institutions to review any relationships they have with the NRA or similar gun promotion organizations, and to take prompt actions to managing these risks and promote public health and safety.” Given that insurance companies and banks are tightly regulated and operate largely at the pleasure of state officials, this would logically be interpreted as a threat. Subsequently, banks and insurance companies alike cut ties with the NRA.

“New York, if these facts are true, tried to circumvent the First Amendment’s ban on censorship by relying on this informal pressure campaign,” noted FIRE’s Smith. “But informal censorship violates the First Amendment, too.” Extra-Legal Threats Violate Individual Rights Protections, Say the Courts

Such informal censorship is known as “jawboning” since, as the Cato Institute’s Will Duffield wrote in 2022, it involves “bullying, threatening, and cajoling” in the place of formal legal action.

“Jawboning occurs when a government official threatens to use his or her powerbe it the power to prosecute, regulate, or legislateto compel someone to take actions that the state official cannot,” observed Duffield. “Jawboning is dangerous because it allows government officials to assume powers not granted to them by law.”

Despite formal protections for individual liberties, such as the First Amendment, the vast regulatory power wielded by government agencies in the United States is easily weaponized against people who don’t do the government’s bidding. Such abuses aren’t hypothetical but are a matter of public record already addressed by the courts.

“People do not lightly disregard public officers’ thinly veiled threats to institute criminal proceedings against them if they do not come around,” the U.S. Supreme Court recognized in Bantam Books v. Sullivan (1963). That case involved Rhode Island officials hassling booksellers to refrain from stocking allegedly obscene publications. The implied threats and constant nagging of booksellers by state officials “was in fact a scheme of state censorship effectuated by extra-legal sanctions,” ruled the court.

Does “a scheme of state censorship effectuated by extra-legal sanctions” better describe the situation in the Murthy case or in the NRA case? Well, Monday was a twofer day, so why not both? A Strong Case Against New York’s Jawboning

In truth, New York regulators’ threats to insurance companies and banks that do business with the NRA and other gun groups were so overt that even commenters hostile to the NRA and self-defense rights concede that state officials went way over the line.

“Every now and then, the Supreme Court takes up a case involving a public official who acted so foolishly…that you wish the justices could each take turns smacking them upside the head,” Vox’s Ian Millhiser, no fan of the NRA, conceded last November. “National Rifle Association v. Vullo, which the Court announced that it would hear last Friday, is such a case.”

And so far, while it’s uncertain which way the justices will jump in Murthy, the court seems inclined to agree that it’s impermissible for government officials to use regulatory threats to coerce financial firms into cutting ties with disfavored political organizations.

“The Supreme Court on Monday appeared sympathetic to the National Rifle Association’s claim that a New York official violated the group’s right to freedom of speech when she urged banks and insurance companies that worked with the NRA to cut ties with the group,” SCOTUSblog’s Amy Howe concluded. ACLU Legal Director David Cole “closed by telling the justices that ‘the notion that this is business as usual, for a government official to speak with a private party and say we’ll go easy on you if you aid my campaign to weaken the NRA. That is not business as usual. That is not ordinary plea negotiation.’ Although it was not entirely clear, a majority of the justices seemed to agree with him.”

With government reaching ever further into American life, it’s time the court reminds officials, once again, that their intrusive powers aren’t supposed to be used to bypass protections for individual rights.

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Sports

Manfred to rule on Rose ban after Trump meeting

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Manfred to rule on Rose ban after Trump meeting

NEW YORK — Baseball commissioner Rob Manfred said he discussed Pete Rose with President Donald Trump at a meeting two weeks ago and he plans to rule on a request to end the sport’s permanent ban of the career hits leader, who died in September.

Speaking Monday at a meeting of the Associated Press Sports Editors, Manfred said he and Trump discussed several issues, including concerns over how immigration policies could impact players from Cuba, Venezuela and other foreign countries.

Manfred is considering a petition to have Rose posthumously removed from MLB’s permanently ineligible list. The petition was filed in January by Jeffrey Lenkov, a Southern California lawyer who represented Rose prior to the 17-time All-Star’s death at age 83.

“I met with President Trump two weeks ago … and one of the topics was Pete Rose, but I’m not going beyond that,” Manfred said. “He’s said what he said publicly. I’m not going beyond that in terms of what the back and forth was.”

Trump posted on social media Feb. 28 that he plans to issue “a complete PARDON of Pete Rose.” Trump posted on Truth Social that Rose “shouldn’t have been gambling on baseball, but only bet on HIS TEAM WINNING.”

It’s unclear what a presidential pardon might include. Trump did not specifically mention a tax case in which Rose pleaded guilty in 1990 to two counts of filing false tax returns and served a five-month prison sentence.

The president said he would sign a pardon for Rose “over the next few weeks” but has not addressed the matter since.

Rose had 4,256 hits and also holds records for games (3,562) and plate appearances (15,890). He was the 1973 National League MVP and played on three World Series winners.

An investigation for MLB by lawyer John M. Dowd found Rose placed numerous bets on the Cincinnati Reds to win from 1985-87 while playing for and managing the team. Rose agreed with MLB on a permanent ban in 1989.

Lenkov is seeking Rose’s reinstatement so that he can be considered for the Hall of Fame. Under a rule adopted by the Hall’s board of directors in 1991, anyone on the permanently ineligible list can’t be considered for election to the Hall. Rose applied for reinstatement in 1997 and met with Commissioner Bud Selig in November 2002, but Selig never ruled on Rose’s request. Manfred in 2015 denied Rose’s application for reinstatement.

Manfred said reinstating Rose now was “a little more complicated than it might appear on the outside” and did not commit to a timeline except that “I want to get it done promptly as soon as we get the work done.”

“I’m not going to give this the pocket veto,” Manfred said. “I will in fact issue a ruling.”

Rose’s reinstatement doesn’t mean he would automatically appear on a Hall of Fame ballot. He would first have to be nominated by the Hall’s Historical Overview Committee, which is picked by the Baseball Writers’ Association of America and approved by the Hall’s board.

Manfred said he has been in regular contact with chairman Jane Forbes Clark.

“I mean, believe me, a lot of Hall of Fame dialogue on this one,” Manfred said.

If reinstated, Rose potentially would be eligible for consideration to be placed on a ballot to be considered by the 16-member Classic Baseball Era committee in December 2027.

Manfred said he doesn’t think baseball’s current ties to legal sports betting should color views on Rose’s case.

“There is and always has been a clear demarcation between what Rob Manfred, ordinary citizen, can do on the one hand, and what someone who has the privilege to play or work in Major League Baseball can do on the other in respect to gambling,” Manfred said. “The fact that the law changed, and we sell data and/or sponsorships, which is essentially all we do, to sports betting enterprises, I don’t think changes that.

“It’s a privilege to play Major League Baseball. As with every privilege, there comes responsibilities. One of those responsibilities is that they not bet on the game.”

Manfred did not go into details on his discussion with Trump over foreign-born players other than to say he expressed worry.

“Given the number of foreign-born players we have, we’re always concerned about ingress and egress,” Manfred said. “We have had dialogue with the administration about this topic. And, you know, they’re very interested in sports. They understand the unique need to be able to go back and forth, and I’m going to leave it at that.”

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Technology

Palantir is soaring while its tech peers are sinking. Here’s why

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Palantir is soaring while its tech peers are sinking. Here's why

Alex Karp, chief executive officer of Palantir Technologies Inc., speaks during the AIPCon conference in Palo Alto, California, US, on March 13, 2025.

David Paul Morris | Bloomberg | Getty Images

Tech stocks have struggled in 2025, as recession and trade war fears sap investor appetite for riskier assets.

Palantir is the exception.

Against a volatile market backdrop, the software maker’s stock has gained 45% and is the best performer among companies valued at $5 billion or more, according to FactSet. The closest tech names are VeriSign, up 33%, Okta, up 30%, Robinhood, up 29%, and Uber, up 29%.

President Donald Trump‘s frenzy of government department overhauls is partially to thank for the pop.

“When you think about macroeconomic concerns, you as a company need to be more efficient, and this is where Palantir thrives,” said Bank of America analyst Mariana Pérez Mora.

Palantir has set itself apart in the software world for its artificial-intelligence-enabled tools, gaining recognition for its defense and software contracts with key U.S. government agencies, including the military. In the fourth quarter, its government revenues jumped 45% year-over-year to $343 million.

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Companies have faced immense volatility in 2025 as tariffs threaten to jeopardize global supply chains and halt day-to-day manufacturing operations by hiking costs. Those fears have brought the broad market index down about 7% this year, while the tech-heavy Nasdaq Composite has slumped 11%.

Tech’s megacap companies — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and Tesla — are all down between 7% and 31% so far this year.

At the same time, the Trump administration has clamped down on government spending, giving Tesla CEO Elon Musk‘s Department of Government Efficiency freedom to slash public sector costs. Some administration officials have touted shifting dollars from consulting contracts to commercial software providers like Palantir, said William Blair analyst Louie DiPalma.

“Palantir’s business model is highly aligned with the priorities of the Trump administration in terms of increasing agility and being very quick to market,” he said.

That’s put Palantir in the league with major contractors such as Lockheed Martin and Northrop Grumman, which have outperformed in this year’s downdraft. Many companies in the space are also looking to partner with the firm and tend to flock to defense during recessionary times, DiPalma said.

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Palantir vs. the Nasdaq Composite

CEO Alex Karp has also been a vocal supporter of American innovation and the company’s central role in helping prop up what he called the “single best tech scene in the world” during an interview with CNBC earlier this year. Karp also told CNBC that the U.S. needs an “all-country effort” to compete against emerging adversaries.

But the ride for Palantir has been far from smooth, and shares have been susceptible to volatile swings. Shares sold off nearly 14% during the week that Trump first announced tariffs. Shares rocketed 22% one day in February on strong earnings.

Its inclusion in more passive and quant funds over the years and the growing attention of retail traders has added to that turbulence, DiPalma said. Last year, the company joined both the S&P and Nasdaq. Palantir trades at one of the highest price-to-earnings multiples in software and last traded at 185 times earnings over the next twelve months. That puts a steep bar on the stock.

“There really is no margin for error,” he said.

WATCH: Palantir CEO on Elon Musk & DOGE: Biggest problem in society is the ‘legitimacy of our institutions’

Palantir CEO on Elon Musk & DOGE: Biggest problem in society is the 'legitimacy of our institutions'

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Technology

NXP Semi shares sink on tariff concerns, CEO Kurt Sievers to step down

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NXP Semi shares sink on tariff concerns, CEO Kurt Sievers to step down

Kurt Sievers, chief executive officer of NXP Semiconductors NV, during the Federation of German Industries (BDI) conference in Berlin, Germany, on Monday, June 19, 2023.

Liesa Johannssen-Koppitz | Bloomberg | Getty Images

NXP Semiconductor Inc. fell about 8% on Monday after the chip company announced that CEO Kurt Sievers will step down as part of its latest earnings.

Here’s how the company did, versus LSEG consensus estimates:

  • Earnings per share: $2.64 adjusted vs. $2.58 expected
  • Revenue: $2.84 billion vs. $2.83 billion expected

Sievers will retire at the end of the year, with Rafael Sotomayor stepping in as president on April 28, 2025.

The company beat expectations on the top and bottom lines but cited a “challenging set of market conditions” looking forward.

“We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects,” Sievers said in an earnings release.

Sales in NXP’s first quarter declined 9% year over year.

The company posted $1.67 billion in auto sales during the first quarter, trailing analyst estimates of $1.69 billion.

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NXP Semi said that second-quarter sales would come in at a midpoint of $2.9 billion, ahead of the $2.87 billion that analysts were projecting. Second-quarter adjusted EPS will be $2.66, in line with analyst estimates.

The company logged first-quarter net income of $490 million, which was a 23% year-to-year drop from $639 million.

NXP’s net income per share was $1.92 compared to $2.47 during the same time a year ago. A drop of 22%.

This is breaking news. Please refresh for updates.

WATCH: Uncertainty from Big Tech is fine right now.

Uncertainty from Big Tech earnings is fine right now, says Big Tech's Alex Kantrowitz

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