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Bed Bath & Beyond Filed For Bankruptcy, Plans To Liquidate All Inventory; Hunter Biden's Lawyers Strike Back At Accusers, Demand Probes; Jury To Decide If Ed Sheeran Copied Marvin Gaye Song. Aired 3:30-4p ET

Aired April 24, 2023 - 15:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[15:30:00]

JIM SCIUTTO, CNN HOST: The Biden administration says there are no plans for a large-scale U.S. led evacuation operation for now. We'll continue to monitor -- Boris.

BORIS SANCHEZ, CNN HOST: Bed Bath & Beyond forced to add a new "B" to the brand -- bankrupt. The retailer just filing for chapter 11 on Sunday, alerting its customers that it's, quote, winding down operations and closing stores. There's some 360 Bed Bath & Beyond locations and 120 Bye Bye Baby Shops. It's not clear how many will shut down or what will happen to the company's 14,000 employees.

CNN business correspondent Rahel Solomon is here with us. Rahel, yet another brick-and-mortar store facing trouble. And Bed Bath & Beyond had been having issues for quite some time.

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: It really has. Yes, this has been a long time coming, Boris. So, quite a few reasons for why Bed Bath & Beyond's sales had been slumping for years. In fact, sales had peaked about 2014, and they have slumped since then. So, one reason is, of course, the rise of ecommerce. Ecommerce players also offer convenience but they offer low prices, so they were undercut there.

The rise of stiff competition from the likes of the Walmart's of the world, the Targets of the world. And then, Boris, the pandemic also really hurt Bed Bath & Beyond quite significantly. Now, I should say, the company had been trying to turn itself around in recent years.

It had a management shakeup at the top. It had closed hundreds of stores even before this announcement. And we had even heard some reporting last summer that certain stores were trying to cut back on utility expenses by cutting back on A/C expenses in the middle of the summer.

So, the company had been trying to prevent this from happening for quite some time, but ultimately making this announcement on Sunday. So, what does this mean for consumers? If you shopped there or if you plan to shop there, well, the company says that if you have a coupon, you need to move fast.

You have until Wednesday to use those. If you have a gift card, you have a little bit longer, through May 8th. And if you have a return, you have about a month, until May 24th.

One analyst saying in a research note today, Boris, management refused to go down without a fight. New comments coming from Neil Saunders, and explored every option to avoid bankruptcy, but they simply could not defy gravity forever.

SANCHEZ: Even turning off utilities like air-conditioning, yikes. Rahel, tell us about this other big company that's now facing serious job losses.

SOLOMON: Right. So, Disney, right? And we've reported on this before. So, this is the second round of pretty significant layoffs for Disney. So, the company announcing a second round of layoffs. So, in addition to these it brings the total layoffs in recent months, Boris, to about 4,000. And we expect another round of layoffs from Disney according to the company before the summer begins.

All told, we're expecting about 7,000 Disney workers. And we can show you within the Disney company who we expect to be impacted. ESPN, Disney Parks Entertainment. I should say that frontline workers at the resorts, at the theme parks, they are not expected to be impacted.

But Boris, Disney and other media companies, of course, have found themselves really victim to a slowing advertising environment, as companies prepare for the potential for a recession. So, you know, it's one of these interesting realities that even if we are not necessarily in a recession yet, companies are already starting to prepare for that likelihood and starting to pull back on their advertising dollars. And so, Disney, a victim of that, as well.

SANCHEZ: The silver lining is that the job market is still red hot. There's something like two openings for every applicant. So maybe those folks will find jobs elsewhere. Rahel Solomon, thank you so much -- Brianna.

BRIANNA KEILAR, CNN HOST: You know that saying, the best defense is a good offense. Well, as Republicans continue to pursue investigations into the finances of Hunter Biden, we're learning about the president son's new legal strategy.

And imagine seeing this on the other side of your window seat. The FAA investigating what caused an American airlines engine to burst into flames. The culprit is much more common than you'd think.

[15:35:00]

(COMMERCIAL BREAK)

KEILAR: So, there is a big push from Hunter Biden to fight back against GOP Congressional investigations aimed in his direction. He's now launching a new legal barrage in an aggressive strategy to strike back. In a letter, Hunter Biden's attorneys are asking the Treasury Department's inspector general and the Office of Congressional Ethics to launch inquiries into some Republicans pushing for investigations into their client, him. Among them, they want a review of former Donald Trump aide Garrett

Ziegler, who allegedly acquired and published online financial activities of Hunter Biden. And they're also asking for an ethics review of Georgia Republican Congresswoman Marjorie Taylor Greene.

Saying that she has made, quote, continuous verbal attacks, defamatory statements, publication of personal photos and data, and promotion of conspiracy theories about and against Robert Hunter Biden. Sound and read like schoolyard insults rather than the work of a member of Congress.

We have CNN legal analyst and former federal prosecutor Elliott Williams here with us now on this. I mean, clearly, he's going through his lawyers for this, a good defense is a good offense approach. Is this something you would advise a client on?

ELLIOTT WILLIAMS, CNN LEGAL ANALYST: Certainly, I would advise a client. Now I'm not a political adviser, and I'm sure his dad's political advisers may take a different view.

[15:40:00]

But look, someone who is a high-profile defendant or someone under investigation who's of a certain stature has an interest in winning over the public with -- as they proceed through the system. So, of course, it makes sense to go on the offensive a little bit.

KEILAR: Legally?

WILLIAMS: Legally, you can get yourself in trouble by -- because every statement you put on the record, like they say, can be used against you in a court of law. And so, it may be risky, depending on what he does or what he says. But here, these are really just letters to the government. They're aggressive. A lot of people or many people don't do them, but they are a legal strategy and legal approach that might work out.

KEILAR: OK, let's talk a little bit about politically then.

WILLIAMS: Yes.

KEILAR: Because in this case of going to the Treasury Department IG. I mean, yes, this is supposed to be an independent IG, and they are, right? But this is in his father's sort of sphere, right? This is the Biden Treasury Department. How much of a pickle does that put the president in that he is doing that?

WILLIAMS: It is hard to say. What he's alleging ultimately could be a violation of crime -- in effects or of criminal law. Saying, you're coming after me, but by the way, someone may have released some of my personal data and made a public, that is itself a crime.

Now he could have just written a letter to the Justice Department asking for a criminal investigation here. It may have been an easier approach to go straight to the Treasury Department, have them investigate it, almost as an HR matter, saying, either you can fire or terminate or take action against this former employee or forward it on for prosecution.

KEILAR: Let's look at the timing of this, right?

WILLIAMS: Yes.

KEILAR: Because that the same time his legal team has requested a meeting with the Justice Department. They'll going to be meeting with a Justice Department official and the U.S. attorney out of Delaware, who is overseeing this investigation into Hunter Biden. What do you make of that? What are you expecting to come out of this meeting?

WILLIAMS: Things are clearly moving along here. Now, it's not that uncommon for people to sit down with prosecutors or investigators as investigations move along. Because they can explain, this is where I was. This is why I did what I did.

KEILAR: This has to do with taxes and that possession of a weapon, just to be clear.

WILLIAMS: Right, yes. Allegations and false statements related to that. So, a lot of people meet with prosecutors as investigations move on. Try to explain their point of view. Where they came from. Why they did what they did. Or if it comes to it, work out a plea deal and say, this is what I'll admit to doing so I don't have to go to jail. Maybe probation or something like that. That may be what's happening here. But to be clear, it's really not uncommon or anything spectacular for someone in investigation to sit down with the Justice Department.

KEILAR: Maybe get a status check.

WILLIAMS: Maybe a status check.

KEILAR: All right, Elliott Williams, thank you so much -- Jim.

SCIUTTO: Now to some of the headlines we are following this hour. New video shows houses sliding off a cliff in Draper, Utah. It's remarkable to watch. Officials say melting snowpack and shifting ground have made some foundations unstable -- to say the least. Luckily, no one was injured. Engineers are evaluating surrounding structures now.

Also, look at this heart-pounding video. A skier helmet camera captured his sudden and his unstoppable slide into a deep crevice, this in the French Alps. You can see he managed to use his skis to slow his descent, ultimately coming to a stop. He saved his own life, it seems.

And if you love French fries like I do, you're not loving this story. A new study finds that eating fried food, specifically fried potatoes, could raise your risk of anxiety and depression. Researchers in China say it might be due to a chemical found in fries. Outside experts, however, say the results are just preliminary. They claim people who are already anxious or depressed may be seeking out those foods. I'm a little depressed reading this story -- Boris.

SANCHEZ: As am I, Jim. Some scary moments for passengers on board two American Airlines

flights in recent days to tell you about. Two fires reported in two separate incidents. Yesterday in Columbus, Ohio, officials say a bird strike may have sparked this engine fire after takeoff, forcing the pilot to return to the airport. Fortunately, the plane landed safely, and the FAA says it's now investigating.

And last week, officials say that a plane was waiting to take off from Charlotte, North Carolina, when a mechanical issue was reported. American Airlines says the plane returned to the gate and takeoff was canceled after passengers saw that.

Also, remember the Southwest Airlines meltdown over the holidays? We're now learning the Department of Justice is joining the investigation into that travel nightmare. That has big implications. CNN's Pamela Brown will be taking a closer look at this story and many others on "THE LEAD." Pam. first and foremost, welcome to CNN NEWS CENTRAL, being on set with us. This is great.

PAMELA BROWN, CNN CHIEF INVESTIGATIVE CORRESPONDENT AND ANCHOR: My first time.

SANCHEZ: And second of all, you have a really important guest that can speak to the transportation issues.

BROWN: Yes, we're all wondering too, what's in store for us for summer travel, right? So, we're going straight to the source. Transportation Secretary Pete Buttigieg about what's going to go on this summer. What does he anticipate? We know that there are -- is a shortage of air traffic controllers. There's concern of a, quote, tsunami of pilot retirements that could create a lot of issues this summer.

[15:45:00]

And then you have those concerns on top of what we're seeing play out in the skies, right, with these two incidents you speak of. One including a bird strike. We're learning now -- this is interesting, I don't know if you knew this, Boris, but apparently, there is an increasing population of larger birds and their inability to hear quieter engines --

SANCHEZ: Did not know that.

BROWN: -- is contributing to this problem. So, we're going to be asking him about that. As then as you mentioned, this big news today, the DOJ is now joining this investigation into Southwest. What happened, as you'll recall, nearly 17,000 cancellations over the winter holiday. They're looking into whether there was an issue with their flight scheduling system and whether there could be a violation of the law. So, there is a lot to dig into with Pete Buttigieg.

SANCHEZ: Yes, a potential criminal case over the holiday delays. Pamela Brown, "THE LEAD" starts at 4:00 p.m. we will be watching. Thanks so much.

BROWN: Thanks. SANCHEZ: Brianna.

KEILAR: Maybe some hearing assistance for birds -- a great invention.

Up next, a key music copyright trial is getting under way in New York. The defendant is Ed Sheeran. And the question is, did he copy the late, great Marvin Gaye? You decide after the break.

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(COMMERCIAL BREAK)

SCIUTTO: Just moments ago, jury selection took place in the copyright infringement case against pop artist Ed Sheeran. The trial is set to get underway tomorrow. The singer, sued by the family heirs of Ed Townsend who cowrote the Marvin Gaye great, "Let's Get It On." They claim that Sheeran's 2014 hit "Thinking Out Loud" has, quote, striking similarities to "Let's Get I On." It violate the song's copyright. So, time for you to be the judge. Let's listen first to a clip from Ed Sheeran's "Think Out Loud."

(BEGIN VIDEO CLIP)

ED SHEERAN, POP ARTIST: And darling I will be loving you 'til we're 70 ...

(END VIDEO CLIP)

SCIUTTO: Great song. All right, so let's listen to a clip from Marvin Gaye's '73 soul classic, "Let's Get It On."

(BEGIN VIDEO CLIP)

Marvin Gaye, Singer, song writer: Let's get it on (ooh ooh) Let's get it on (ooh ooh) You know what I'm talkin' ...

(END VIDEO CLIP)

SCIUTTO: Yes, I mean, it's a little bit of a tough one. CNN's Chloe Melas, she's been covering the copyright trial for us. I wonder, how does Ed Sheeran -- how has Ed Sheeran and team respond to that claim? So, is the first time we had a claim like this, by the way.

CHLOE MELAS, CNN ENTERTAINMENT REPORTER: It's not. And look, I me, since like the beginning of music and the recording industry, you have seen stars have to deal with copyright infringement suits if you want to go all the way back to Led Zeppelin "stairway to Heaven." Or you want to go as recently as two Taylor Swift with the "Shake It Off" lawsuit that made headlines and sort of mysteriously disappeared. Often times, we see these settle out of court.

And I just want to say that, you know, this is a common core progression that, you know, Ed Sheeran's legal team and their music experts, Jim, are saying, that are found in countless songs from the Beach Boys, you name it, and that he didn't have this song in mind from the '70s from Marvin Gaye. And remember, it's not Marvin Gaye's family or heirs who are suing Ed Sheeran, it is the Townsend side, the producer side that cowrote it.

And I want to tell you that, you know, yes, jury selection concluded today. Opening statements start tomorrow in Manhattan Federal Court, and the jurors are going to have to decide is this melodic, harmonic and rhythmic infringement. So, they have to keep the lyrics out of this when they're listening to it. So, it's certain pieces of the composition of the music that they're going to be listening for.

SCIUTTO: It reminds me of the Sam Smith case, you know, whether he stole that from "I Won't Back down." But what's interesting here is that Ed Sheeran has faced this kind of thing before.

MELAS: Yes, well, so, Ed Sheeran actually faced a copyright infringement last year with the "Shape Of You," and he was successful. He won and actually the defendants had to pay him a million dollars in legal fees. I want to point out though a video that is being widely debated by both sides, both Ed Sheeran's team and the Townsend side. And we don't know if it's going to make its way to court.

But it's 2014, a performance when Ed Sheeran performed in Zurich Switzerland, and he is playing the song the song in question and then he transitions into playing Marvin Gaye's "Let's Get It On." And Townsend's legal team, they're saying, ah ha, right there, that is an admission that he knew that they sounded similar. Take a listen.

SCIUTTO: It's really hard. I mean, the Sam Smith of course was Tom Petty's "I Won't Back Down." Let's have a listen.

(BEGIN VIDEO CLIP)

SHEERAN: (INAUDIBLE) sha-la-la-la, let's get it on ...

(END VIDEO CLIP)

MELAS: OK, so he is singing, thinking out loud, and then you hear him literally say, Jim, let's get it on. The crowd goes wild. There have been hundreds of thousands of views on YouTube with this clip. And this came out -- this particular performance was in 2014, the same year the song came out.

It was in 2016 that the family, the heir sued Ed Sheeran and this legal battle has been going on since 2016, finally making its way to court this week. So does that video support a claim that Ed Sheeran knew that his song was, you know, a play off of Marvin Gaye's "Let's Get It On?" We'll just have to see what the jury decides.

SCIUTTO: Goodness. Chloe Melas, thanks so much. Listen, I don't know.

[15:55:00]

I me, they're so much -- well, first of all, imitation is the sincerest form of flattery. I tend to copy from you guys, you know, repeatedly as often as I can.

KEILAR: The lawsuit will be coming, Jim.

SANCHEZ: Yes, seriously.

SCIUTTO: I mean, you look at these core progressions, right, I mean, so many of them they share so much, the difference between stealing as opposed to maybe being subconsciously inspired.

KEILAR: But it's not like "Ice, Ice Baby Under Pressure" situation.

SANCHEZ: But they were almost identical. Right?

KEILAR: Yes, exactly.

SCIUTTO: This is different.

SANCHEZ: Hey, thanks so much for joining us. Today that does it for us. Don't go anywhere just yet, "THE LEAD" with Jake Tapper, Pamela Brown filling in for Jake, starts right after a quick break.