Legal News for Mon 2/3 - Musk Makes a Mess of Treasury Payments, a New Conservative Law Firm Tied to Musk Launches, Google's App Store Appeal and McDonald's Settles a Scholarship Lawsuit

This Day in Legal History: Chief Justice Taft Resigns

On February 3, 1930, Chief Justice William Howard Taft resigned from the U.S. Supreme Court due to declining health. Taft remains the only person in American history to have served both as President (1909–1913) and as Chief Justice (1921–1930). After his presidency, he achieved what he considered his true ambition—leading the nation’s highest court. As Chief Justice, he was instrumental in modernizing the federal judiciary, including advocating for the construction of the Supreme Court’s own building, which was completed after his death. His tenure also saw decisions that reinforced executive power and judicial efficiency. By late 1929, however, his health had deteriorated significantly due to heart disease and progressive neurological issues. Struggling to fulfill his duties, he reluctantly stepped down, fearing he could no longer serve effectively. Just five weeks later, on March 8, 1930, he passed away. His successor, Charles Evans Hughes, was nominated by President Herbert Hoover. Taft’s dual legacy as both a U.S. President and Chief Justice remains unmatched in American history.

Elon Musk claimed his "DOGE team," tasked with government efficiency, is shutting down certain payments to federal contractors, raising concerns about his access to U.S. Treasury systems. Musk stated that his team is eliminating corruption in real time, including halting payments to Lutheran Family Services, a charity supporting refugees. The Treasury Department has not confirmed Musk’s level of access, but Senator Ron Wyden suggested Treasury Secretary Scott Bessent granted DOGE full control over federal payments. 

Musk's influence follows his appointment by Donald Trump to modernize federal IT, though he appears to be extending that role to financial oversight. USAID security officials were placed on leave after refusing DOGE staff access, prompting Musk to call the agency “a criminal organization.” His claims about widespread fraud in federal payments remain unverified, as Treasury already has systems in place to prevent improper transactions. Meanwhile, Treasury’s top career official, David Lebryk, recently left his post, further intensifying scrutiny. Trump praised Musk’s cost-cutting efforts but acknowledged potential disagreements on policy direction.

Musk Says DOGE Is Halting Treasury Payments to US Contractors - Bloomberg

A new conservative law firm, Lex Politica, has been launched by Chris Gober, a lawyer for Elon Musk’s America PAC, along with attorneys Steve Roberts and Jessica Furst Johnson. The firm aims to represent Republican candidates, campaigns, and causes, strengthening ties between conservative legal professionals and Trump-aligned politicians. 

Gober, who previously served as America PAC’s treasurer, stated he wants Lex Politica to become synonymous with the conservative movement. Roberts and Johnson bring experience representing figures like House Speaker Mike Johnson, Senator Rick Scott, and former presidential candidate Vivek Ramaswamy. The firm joins a growing network of right-leaning law groups, such as Dhillon Law Group and Schaerr Jaffe, which have close ties to Trump and Musk. These firms have been involved in significant legal battles, including free speech cases on Musk’s platform, X, and efforts to reshape the federal government’s legal structure. Neither Musk nor representatives for key Republican clients commented on the firm’s launch.

Lawyers for Musk, Republican campaigns form new Washington firm | Reuters

Google is appealing a jury verdict and court order that found it illegally stifled competition in its Play Store. The case, brought by Fortnite maker Epic Games in 2020, accused Google of monopolizing app distribution and in-app payments on Android devices. A jury ruled in Epic’s favor in 2023, and U.S. District Judge James Donato ordered Google to allow rival app stores within its Play Store and make its app catalog available to competitors. Google argues the ruling was flawed, claiming it competes with Apple’s App Store and that the judge improperly expanded the order to impact all developers, not just Epic. Epic insists Google engaged in years of anti-competitive behavior and is fighting to uphold the jury's decision. Microsoft, the U.S. Justice Department, and the FTC have backed Epic in the case. The 9th Circuit Court of Appeals is set to hear arguments on Monday, with a decision expected later this year, which could potentially be appealed to the Supreme Court.

Google to ask US appeals court to overturn app store verdict | Reuters

McDonald’s has agreed to revise its HACER National Scholarships Program by removing race and ethnicity as eligibility criteria to settle a lawsuit filed by the American Alliance for Equal Rights, a group led by affirmative action opponent Edward Blum. The lawsuit argued that restricting eligibility to students with at least one Hispanic or Latino parent discriminated against other ethnic groups. McDonald’s denied wrongdoing but decided that modifying the program was the best course of action. Moving forward, applicants will need to demonstrate their contributions to the Hispanic and Latino community rather than meet racial or ethnic requirements. The settlement comes as McDonald’s and other companies scale back diversity initiatives following legal challenges and political pressure. In January, McDonald’s also abandoned diversity goals for corporate leadership, citing shifting legal standards, including the Supreme Court’s 2023 ruling that struck down race-based college admissions policies. Blum criticized the scholarship’s previous criteria, arguing that many students were unfairly excluded.

McDonald's settles lawsuit challenging Latino scholarship program | Reuters

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe