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Supreme Court Reviews Multi-Billion Dollar Opioid Deal; WH Warns Aid Delay Will "Kneecap Ukraine" On Battlefield; Senate Expected To Take Up Israel/Ukraine Funding This Week; NYT: Nationwide Shortage Of Air Traffic Controllers Resulting In Exhausted, Demoralized Workforce. Aired 1:30-2p ET

Aired December 04, 2023 - 13:30   ET

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

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[13:32:45]

BORIS SANCHEZ, CNN HOST: The biggest bankruptcy case in generations went before the Supreme Court today, putting the opioid crisis front and center. At issue? Whether the billionaire Sackler family can be shielded from additional opioid-related lawsuits.

Their company, Purdue Pharmaceuticals, agreed to a multibillion-dollar settlement that would pay victims of the opioid epidemic. However, the Sacklers insist on immunity from future litigation as a condition of this agreement.

Now, a New York court approved the settlement. But the Justice Department branch in charge, known as the U.S. Trustee, is fighting it. Partly, because it keeps individual victims from pursuing their own lawsuits in the future.

CNN's Paula Reid has been listening to the oral arguments this morning.

So, Paula, explain the two sides here because many that were victimized by the opioid epidemic may lose out, depending on what the decision is.

PAULA REID, CNN SENIOR LEGAL AFFAIRS CORRESPONDENT: That's right. The majority of people who would sue in this case have supported the structure of the settlement.

This is not your ordinary bankruptcy case. This does involve a restructuring of Purdue Pharma, which is owned by the Sackler family. But as part of this larger agreement, the Sackler family agreed to pay around $6 billion over a course of about 18 years in exchange for being protected from any future liability.

Now some people have questioned, well, how can they do that? How can they get protection from future lawsuits?

But as you noted, this was upheld by the New York Court of Appeals. But a trustee who oversees bankruptcy cases is asking the Supreme Court to review this particular agreement, saying this raises some real constitutional questions about the rights of victims to be able to sue in the future.

Now today, the justices asked questions for around two hours of lawyers from both sides.

And I want to play some clips on what the justices were asking. Let's start with Justice Kagan. She pointed out the fact that this is a very unusual benefit to extend in a bankruptcy case.

Let's take a listen.

(BEGIN AUDIO FEED)

ELENA KAGAN, U.S.S SUPREME COURT JUSTICE: The Sacklers are getting a better deal than the usual bankruptcy discharge. Because as Justice Gorsuch indicated, they're being protected from claims of fraud and claims of willful misconduct.

So, yes, in some ways, they're getting not quite as much but, in some ways, they're getting much more.

(END AUDIO FEED)

[13:35:00]

REID: But on the other side, Justice Kavanaugh, for example, pointed out the fact that this enjoys pretty widespread support among people who would sue.

And questioned whether taking away this protection from the Sackler family, which would really gut this deal, and they'd probably have to start, not from scratch, but really have to do a lot more work here, if that is really the best way to compensate victims.

Let's take a listen to what he questioned.

(BEGIN AUDIO FEED)

BRETT KAVANAUGH, U.S. SUPREME COURT JUSTICE: I think the problem and maybe the discontent between the opioid victims is you're inclined or you're saying, oh, if you reject this plan, there's going to be more money available down the road from the Sacklers.

And I don't think you're accounting for the uncertainty of liability, first of all, the uncertainty of the indemnification insurance contribution claims and the uncertainty of recovery.

(END AUDIO FEED)

REID: He makes an important point there. If you take this $6 billion and the protections that they have been extended off the table, it's unclear what else victims could get and how long it would take them that relief.

Now, Boris, usually bankruptcy cases before the Supreme Court, very technical --

SANCHEZ: Yes.

REID: -- don't get this kind of attention. Of course, the opioid epidemic, one of the biggest scandals in American history.

We're unlikely, though, to see a decision here before the spring.

SANCHEZ: Yes, a significant case with major implications maybe in the future.

Paula Reid, thank you so much.

The White House is ringing the alarm when it comes to funding for the war in Ukraine. Ahead, we'll tell you why the administration says inaction by Congress could end up "kneecapping" Kiev on the battlefield.

Plus, drunk, high, even sleeping on the job. We're talking about the people responsible for keeping thousands of airline passengers every day. A new report raising serious safety concerns about air traffic controllers. We'll lay out the details in just a few minutes.

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[13:41:18]

SANCHEZ: Now to some of the other headlines we're watching this hour.

Derek Chauvin, the former Minneapolis police officer convicted of murdering George Floyd, has been released from the hospital.

His attorney says that Chauvin is now back at the Arizona federal prison where he was stabbed 22 times by a fellow inmate the day after Thanksgiving. His alleged attack has been charged with attempted murder.

Also, the music streaming service, Spotify, is cutting about 17 percent of its global workforce in its third round of layoffs just this year. That's 1,500 jobs.

They're joining a growing list of big tech companies, including Alphabet, Amazon, Microsoft, Meta and X, that are enacting deep cuts. The CEO of Spotify says its decision to slash jobs is a direct result of economic growth slowing dramatically.

Meantime, Indonesia's Merapi Volcano is erupting again today following Sunday's massive eruptions that sent giant plumes of smoke and ash thousands of feet into the sky.

Officials tell CNN that 11 climbers there have been found dead. Another dozen still missing. A team of 40 rescuers was on the mountain today, while eruptions were still taking place, looking for them.

Brianna?

BRIANNA KEILAR, CNN HOST: Some amazing pictures there.

Turning now to a stark warning on the war in Ukraine. The White House telling Congress that if members do not approve more funding for Kiev, the U.S. will "kneecap" Ukraine on the battlefield.

This is coming after President Biden requested $61 billion in aid for Ukraine back in October. House Speaker Mike Johnson and Senator Minority Leader Mitch McConnell insist that support for Ukraine funding is contingent on tightening immigration laws.

In the meantime, Senate Majority Leader Chuck Schumer says he will soon bring legislation to the floor that ties together aid for Israel and Ukraine.

CNN Max anchor and chief national security analyst, Jim Sciutto, is here with us.

All right, Jim, so in this latest letter to congressional leadership, it's a pretty dire warning. We've heard warnings before but this really steps it up. Why?

JIM SCIUTTO, CNN ANCHOR: Because it's really bad right now. The battlefield is effectively frozen, right? Ukrainian forces have been in the midst for months of this counteroffensive but have gained much less territory than expected.

And it's now moved down to a case -- I had a story on Friday -- of "a mile here, a few miles there." So there's that.

They are about to run out of key weaponry and ammunition for that weaponry. So that's an issue.

And in them midst of that, Russia is planning to take advantage of that with a significantly ramped-up campaign against civilian infrastructure inside Ukraine in the coming couple of weeks to take advantage of the fact that it's wintertime and to really take out power and to make life miserable for Ukrainian civilians to weaken Ukrainian resolve in this war.

Russia sees an opening here. And the administration is concerned that if that aid does not come quickly, Russia will be able to capitalize.

KEILAR: We were just this week out at the Reagan National Defense Forum where there was this large brain trust of lawmakers and folks who have an idea of where this going.

Did you get a temperature check of where this bill is?

SCUITTO: I talked to numerous Republicans and Democrats on this and all of them believe there's a path to getting military aid for Ukraine. Of course, this is wrapped in other things, aid to Ukraine, aid to Israel, but now concessions on immigration, on border security.

Republicans demanding that as a price of it. It's odd. Let's be frank, it's odd to tie foreign military assistance to a U.S. national security issue but that's a fact, that's where it is right now. Republicans demanding it. Democrats are aware they're going to give on it. The question is, where exactly?

And by the way, a Republican Senator noted to me that some of the Democrats she speaks with, particularly border Democrats, from border states, they're not necessarily opposed to some of these changes being discussed.

[13:45:04]

One of which is to raise the standard for asylum seekers for their claims to be deemed credible. The thing is, as you and I were discussing, it's hard to say that out loud.

They believe there's a path but that time is running thing. Chuck Schumer wants to hold a vote this week. Republicans are saying it's way too early for a vote, they are not ready with the deal.

So it's hard to see how quickly that deal is going to come through but everybody I spoke with thinks there's a path, they're just not there yet.

KEILAR: It is significant, as you point out though, it is not a poison pill for some Democrats.

SCIUTTO: Exactly.

KEILAR: And maybe the Ukraine funding is, in the same way, not a poison pill for some Republicans, many, in fact.

Where do -- where's the war right now?

SCIUTTO: The war is largely frozen. You've heard this term since the beginning, a frozen conflict. That is a Russian intention. You can't win the war, and it was pretty clear early on they couldn't win the war as quickly as expected.

It sees advantage. If they could freeze it where it is, and that it would exhaust the other side. Divides NATO allies, basically, you know, capitalizes on Americans, Europeans running out of patience with the war.

Some of those trend lines don't look very good, right, for Ukraine and its allies. It's not quite frozen but those frontlines have not changed significantly.

And the feeling is they need significantly more fire power to change that scenario. If they don't get any firepower, then it goes the other way. And then concern becomes they start to lose territory.

KEILAR: Jim, thank you so much. Obviously, an important thing to keep our eye on right now --

(CROSSTALK)

SCIUTTO: One hundred percent. KEILAR: -- is percolating.

SCIUTTO: The war hasn't gone anywhere.

KEILAR: Yes, it hasn't. We'll see if this bill does though. It's so important.

Ahead, what happens when the people who are supposed to be keeping you safe while you fly are the ones making some pretty dangerous mistakes? We have a disturbing new report ahead.

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[13:51:33]

SANCHEZ: There is a troubling report out by "The New York Times" detailing how the nation's air traffic controllers are being pushed to the brink.

Some of them sleeping on the job, even getting drunk and high at work. Also issues like mental health problems, critical staffing shortages and various workplace infestations.

CNN aviation correspondent, Pete Muntean, joins us now.

Pete, you have reported in the past about problems facing air traffic controllers, but it seems like the situation is getting worse. At least, what has come to light publicly appears to be much worse.

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: At least right now, the FAA is trying to debunk this story in the immediate. But it says it is really not reflective of the high standard of safety in the national air space system.

The bottom line here is something that we have been reporting for months. The air traffic control system simply is stretched to the limit. And controllers say they are overworked and understaffed.

This was highlighted again just last week in a massive release of data from the NTSB about in a close call in Austin in February. The air traffic controller in that case said he was working an overtime shift on a six-day workweek.

And in that incident, a landing FedEx flight and a departing Southwest flight came only about 100 feet away from colliding with one another. What the pilots on the FedEx flight said today, not the air traffic controller.

Now air traffic control staffing is a huge issue that the FAA is scrambling to fix. And the Department of Transportation says that the FAA is 3,000 workers short.

And when you factor in retirements and attrition, the workforce issue has grown only by single digits, a net gain of only six employees.

And new FAA administrator, Mike Whitaker, said in an interview before this story broke that his focus has really been on getting new controllers through the FAA Training Academy.

Listen.

(BEGIN VIDEO CLIP)

MICHAEL WHITAKER, FAA ADMINISTRATOR: My initial focus has been on how to make these numbers go up quickly without lowering standards. So I'm really focused on the next three years out of the gate.

I will also look at whether we need an additional facility to help augment that. But initially, we just want to try to get as many controllers as we can.

(END VIDEO CLIP)

MUNTEAN: When it comes to controllers drinking, sleeping and using, the FAA says it dealt with those problems on a case-by-case basis. The union of controllers insists the group is extremely professional.

And, Boris, the controllers I know say they are pushed really hard but they take their job very seriously. And the staffing issue needs to be fixed yesterday.

SANCHEZ: So you walked through the messaging of the FAA but what are they doing to fix the actual problem?

MUNTEAN: In the - in the immediate, at least to stem off this problem in some really busy areas, like New York, they have essentially asked the airlines to throttle back the amount of flights that they're operating.

And the Faa was doing that only really over the summer. Now it's been extended into next year.

So the idea is to make so that the pressure is not so high on these controllers. And there's not too many airplanes going through a very thin funnel of air space, especially in New York and D.C.

So we'll see if that works in the immediate. But the big thing right now is that they simply need to hire. And the goat is about 1,500 this year, 1,800 next year.

But that does not deal with the attrition. So that's the big thing. And they really want to open up another training academy to get them through.

SANCHEZ: And it's really scary because that funnel that you mentioned, I'm assuming it's going to get worse in the holiday season. More people are traveling.

Is there a real danger here?

MUNTEAN: The good news here and the airlines have actually said that is working, that that throttling back of flights have made it so there's not delays and cancellations.

[13:55:00]

Is there a danger? Well, you sort of have to ask the National Transportation Safety Board. And in that data that they released last week, they essentially pointed to these issues.

They said that this controller in this Austin incident had been working too hard and was really not totally leaned into the incident that was about to take place in front of him.

And it was up to the pilots in this case to catch this situation, which was, by the way, taking place in very thick fog and low visibility before dawn. And so they were the ones who caught this would-be collision. They were really seconds away from the (INAUDIBLE).

SANCHEZ: And very lucky.

MUNTEAN: Yes.

SANCHEZ: A really eye-opening report.

Pete, thanks so much -

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SANCHEZ: Still plenty mor news to come on CNN NEWS CENTRAL, including a former U.S. ambassador accused of being a covert agent for Cuba. What we're learning about his decades of alleged spying, when we come back.

(CROSSTALK)