Author: openjargon

• Mountaineer Garrett Madison recently summited Mt. Everest, Mt. Lhotse, and Mt. Nuptse this season.
• This is his second time doing it, earning him another Everest "triple crown" of mountaineering.
• Madison made the trek even more challenging by collecting pounds of trash along the way.

Few people have successfully summited the Everest region's "triple crown."

These three peaks — Mt. Everest, Mt. Lhotse, and Mt. Nuptse — are some of the most dangerous climbs, boasting some of the harshest conditions on Earth: freezing temperatures, low oxygen levels, and treacherous terrain.

Summiting any one of these three peaks could risk your life. Climbers can die from severe altitude sickness, falls into deep crevasses, exposure, and other threats.

Professional mountaineer Garrett Madison has achieved the Everest triple crown not once, but twice — first in 2023, the deadliest Everest climbing season on record, and again this year.

But visiting the top of the world isn't just about climbing for Madison anymore. He's summited Mt. Everest 14 times, and after years of watching trash accumulate on the mountain and its surrounding peaks, he's decided to tackle the issue head-on.

He started the Madison Mountaineering Mountain Cleanup Project in the fall of 2023, and he and his team have now collected a total of 4,000 pounds of trash — 2,000 pounds in 2023 and another 2,000 pounds this year — from Everest and neighboring peaks.

"I think we've made a big dent. There's obviously more work to be done," Madison told Business Insider.

Cleaning up polluted peaks

Picking up trash on some of the world's tallest mountains adds yet another layer of complexity and intensity to an expedition like this, Madison said.

"It's not just like walking down the street and picking up trash out of the ditch. It's really hard work," he said.

Doing any sort of physical labor at such a high altitude, while also spending entire days climbing, can lead to exhaustion fast.

Plus, the climbers have to carry extra protective equipment like gloves and packages for transporting the trash down the mountain. Every additional pound is extra strain.

"Our teams could only work for like an hour at a time before they'd have to rest," Madison said.

The climbers also had to be wary of dangerous terrain. Most of the trash is in the camp areas, which are relatively flat, Madison said. But Camp 3 is located on the Lhotse Face, which is very steep with a high risk of avalanches and falling rocks.

"That's a treacherous area to be operating in, you don't want to fall. People have fallen down and died," he said.

But for Madison and his cleanup team, the work is worth the risk.

Pollution flows down

The Sagarmatha National Park and Buffer Zone, which includes Mt. Everest and seven of its neighboring peaks, has a serious trash problem. Most of the garbage is left behind by climbers, and includes stuff like abandoned tents, discarded food packaging, and empty oxygen canisters.

A 2010 study estimated that park tourism generated roughly 4.6 tons of solid waste per day during climbing seasons. But that number is likely higher today, because the amount of people climbing these peaks has generally increased since then while garbage disposal methods are still lacking.

Waste management rules on Mt. Everest haven't been well-enforced, Troy Aupperle, an experienced mountaineer who climbed Everest twice and summitted once, told Live Science in 2022. And he doesn't think most climbers are all that concerned with carrying their trash back down the mountain.

"You barely have enough energy to get yourself off the mountain, so anything you don't have to carry or can get rid of, you just off-load so you can get down," Aupperle told Live Science.

All that waste is polluting critical water resources for local communities, Madison said. "Where does all that trash go? It'll flow down the glaciers into the streams and rivers and water sources that communities rely upon," he said.

Plus, discarded climbing equipment can break down into microplastics, which have been found in water and snow samples at Everest's base camp.

"Of course, what we really want to see is a change in policy and attitudes through education, where it's no longer acceptable to leave trash behind up there." But it's been a challenge.

In 2014, for example, Nepal's government instituted a rule requiring every mountaineer who climbs above Everest's base camp to return with 18 pounds of trash from the mountain, or forfeit a $4,000 deposit. But many people just forfeit the money, Alton Byers, a mountain geographer wrote in an article for The Conversation in May.

Madison's cleanup project is perhaps one of the most recent efforts but it's certainly not the first. In 1991, local Sherpa people created the Sagarmatha Pollution Control Committee (SPCC), which monitors waste on the permit-required peaks in this region, like Mt. Everest, Byers wrote.

And in 2019, the nonprofit Sagarmatha Next started a "Carry Me Back" program that encourages tourists to take two-pound bags of trash out of the mountains to be properly processed and disposed of.

Madison's cleanup project partners with both of these organizations in a united front against trash pollution on the world's tallest peaks.

"It's been an honor, very exciting to work with them a little bit," he said.

Madison hopes that his clean-up project helps reduce the environmental impact that climbers have on Mt. Everest and other peaks in this region.

"It's a lot of work, but it's definitely worth it. I feel really lucky and privileged to get to go on these expeditions," Madison told Business Insider.

• "Chipotle Boys" are now they're getting their own special.
• "You know who you are," Chipotle said in its promotion of the double-chicken and white rice bowl.
• The brand posted a "starter pack" on X, which included aviators, AirPods, and the requisite puffy vest.

Move over rat boys; it's a Chipotle Boy summer.

The army of young urban male office workers who just might constitute the chain's most reliable customer cohort is now being recognized with a meal special of their own.

Now available for a limited time, the Chipotle Boy bowl is available in the app, featuring the necessary two scoops of chicken (so you don't have to ask), white rice, black beans, mild salsa, corn, sour cream, cheese, guacamole, and lettuce.

"You know who you are," the item listing says, beneath a collage of the bowl, a copy-pasted stack of white finance bros, and a spreadsheet to really drive the meme home. (It is unclear from the image whether the guys are 6'5" or have blue eyes.)

In a post on X, the brand posted a "Chipotle Boy Starter Pack," which included aviators, AirPods, a MacBook, a glovebox full of Chipotle napkins, and the requisite puffy vest.

Several regulars previously told Bustle that Chipotle has been able to "tick all the boxes" of convenience, speed, and nutrition.

"After all, who needs variety when you have the intoxicating promise of optimization?" Bustle wrote.

Attempting to "Make it my own" on the Chipotle Boy Bowl brings up a warning that changes could make the meal ineligible for the promotional price.

Bustle also observed that several customers were picking up orders from restaurants near their offices — in many cases to eat at their desks.

And a trainer told the outlet that "gym boys tend to be Chipotle Boys," since the chain's dietary information makes it easy to track macronutrients.

Earlier this year, some diners complained that they were receiving skimpier scoops than they were expecting, prompting the company to clarify that there had been no official change in portion sizing.

• Ukraine has vowed to destroy the strategic Kerch bridge linking Russia with occupied Crimea.
• Russia has attempted to protect the bridge with barges and floating boom defenses.
• But Ukraine has demonstrated that it can innovate and adapt to defensive measures in the Black Sea.

Russia has placed multiple barges and other defenses around a major bridge connecting it to the occupied Crimean peninsula, recently captured satellite images show. The efforts appear to be a bid to protect the structure from Ukraine's vaunted fleet of exploding naval drones.

The Kerch Bridge — Russian President Vladimir Putin's prized accomplishment and a symbol of the Kremlin's desire to maintain its grip on Crimea forever — has already fallen victim to several high-profile Ukrainian attacks, including a naval drone strike.

Past efforts to protect the bridge have been ineffective, and as Ukraine continues to innovate with its highly effective naval drone programs, Russia's new defensive barriers may not be enough to prevent further attacks.

Britain's defense ministry said recently that Russia started placing barges as barriers on the southern side of the 12-mile-long bridge, which connects Russia and Crimea and facilitates military and economic activity, in early May. Satellite imagery captured on May 23 and published by the UK government revealed multiple barges in place.

The defense ministry said in a June 8 intelligence update that "these barges were placed by Russian forces in an attempt to defend the bridge and shipping channel, reducing the angles of approach for Ukrainian unmanned surface vehicles." It added that the "previously installed barriers have been damaged by storms, reducing their effectiveness."

By June 8, more than two weeks after the images were taken, the protective measures had swelled to include several additional barges and floating boom defenses that run parallel to the bridge, according to satellite imagery captured by Maxar Technologies and then obtained by Business Insider.

To allow for ships to pass through the defenses and under the bridge, the barges give way to an opening, and the floating booms curve inward toward the structure underneath its arch.

Whether these new defenses are able to effectively prevent Ukraine's naval drones remains to be seen.

But the Ukrainians tend to adapt and find ways to attack Russia's assets at sea even as Moscow develops measures to protect them, said Brady Africk, an open-source-intelligence analyst and an associate at the American Enterprise Institute think tank.

"These barriers complicate the equation, but it is still a solvable one," said Africk, who has chronicled the development of the defenses over the past few weeks.

Ukraine has repeatedly vowed to destroy the bridge because it is used as a supply and logistics route for the Russian military in Crimea and also because it represents Moscow's illegal annexation and continued occupation of the peninsula. Kyiv's ambitions have been underscored by multiple attacks on the site over the past two years.

But a Ukrainian navy spokesperson said destroying the bridge now won't be as effective as it would have been earlier in the conflict because Russia is relying on it less frequently to help sustain its war efforts in Crimea.

The lengthy bridge accounts for less than a quarter of all transiting cargo, Dmytro Pletenchuk told local media this week. To help sustain its military presence in Crimea, Russia has been using ferry crossings. Ukraine, notably, has shown that it can also target these operations, highlighting Kyiv's ability to adapt.

"Ukraine is very comfortable with innovating past Russia's defenses and finding new ways to strike targets in occupied territory," Africk said.

Ukraine has made a number of upgrades and improvements to its naval drones since they were used against the bridge last summer.

The modifications made to them include giving the vessels larger warheads, increasing their ranges, and outfitting them with missiles and rockets, reflecting a push from Kyiv to make its drone fleet even more of a problem for Russia.

The naval drones have already been used to wreak havoc on Moscow's Black Sea Fleet, damaging and destroying a number of warships, at least two dozen by the Pentagon's count.

Given the threat, Russia has turned to barges and floating boom defenses to protect other high-profile sites around the Black Sea and Crimea, including at the ports of Sevastopol and Novorossiysk. It has also sunk ships and used smoke generators to help safeguard the Kerch Bridge.

These are relatively cost-effective ways to add an extra layer of protection to a site as valuable as a warship port or a strategic bridge — compared to more kinetic options like constant aircraft patrols of the waterway — but they aren't necessarily the most reliable.

"In terms of constructing defenses and defending key assets, I think Russia has realized that where they can't excel in quality of defenses, they should try and invest in quantity," Africk said. "We see that with these barges that are protecting" the bridge.

• GAO reports DOD is troublingly slow at delivering new weapon systems to keep up with threats.
• Despite reform attempts, DOD's bureaucratic hurdles and workforce issues hinder timely tech delivery.
• GAO urges DOD to adopt better practices and clear objectives to stay on top.

The Department of Defense continues to struggle to quickly deliver new technologies, a watchdog agency argued in a new report published Monday.

Significant national security threats are continuing to emerge and evolve, but the "DOD remains alarmingly slow in delivering new and innovative weapon system capabilities," the Government Accountability Office wrote it its Weapon Systems Annual Assessment.

Though the Pentagon plans on investing trillions of dollars into weapons development and acquisition, the GAO says the delivery of these new technologies is not happening quick enough.

The US Navy is a prime example of the challenges the military is currently facing. Most of the sea service's biggest shipbuilding projects are delayed by years, putting new weaponry way behind schedule at a time when rival China is rapidly expanding and improving its navy.

The Department of Defense introduced reforms in 2020 related to acquisition policies in hopes of speeding up the lengthy and overwhelming bureaucratic acquisitions process; however, "slow, linear development approaches persist," according to the GAO report on these issues.

The GAO said that the concerning delays within the Department of Defense are linked to issues related to the department's workforce, modernization efforts, and security.

One thing the GAO noted is that a majority of the acquisitions programs did not regularly report its scheduling of important cybersecurity evaluations to be completed at the proper phases of development or ahead of time for planned transitions, which puts acquisitions at risk of vulnerabilities that could then affect the delivery schedules.

Additionally, the Department of Defense's acquisition programs have had difficulties hiring and retaining a sufficient workforce, especially in software-focused fields.

The agency also explained in its assessment that the timeframes acquisitions programs provide for certain projects, such as 10 years to produce initial capabilities for a warfighter, are simply "incompatible with maintaining military advantage."

The accountability agency made clear in its report that the Department of Defense must work quickly to address its stagnancy as foreign powers such as China and Russia actively aim to become more dominant forces militarily.

China, known as America's "pacing challenge," has "greatly strengthened its military capabilities over the last 20 years and its stated goal is to have a 'world-class' military by the end of 2049," the report said. And "Russia is increasing its military capability and seeks to expand control over portions of the former Soviet empire."

The GAO offered several recommendations, encouraging the Department of Defense to address how its acquisition programs apply best practices for product development, present objectives for its software workforce, and identify tactics and materials required to meet those objectives.

"DOD concurred with the software workforce recommendations and partially concurred with the remaining recommendation," the agency said.

• The "Bridgerton" season three finale introduces a queer plot twist for Francesca Bridgerton.
• Masali Baduza plays a gender-swapped version of John Stirling's cousin from the book series. 
• Showrunner Jess Brownell said she got "Bridgerton" author Julia Quinn's blessing to make the change.

Warning: Major spoilers ahead for season three, part two of "Bridgerton," and "When He Was Wicked," the sixth Bridgerton book.

The season three finale of "Bridgerton" sets up a major change in Francesca Bridgerton's (Hannah Dodd) love story by introducing a gender-swapped character, and book series author Julia Quinn gave her seal of approval.

"The fact of the matter is, the fan base is not a monolith, and you're never going to please every single side of the fan base," showrunner Jess Brownell told Teen Vogue in an interview published on Friday. "In, for example, deciding to tell a queer story with Francesca, I spoke with Julia Quinn, I got her blessing."

Francesca becomes a more prominent character during season three of the Netflix drama series as she makes her debut in society and seeks a compatible match for marriage. She finds that partner in John Stirling, the Earl of Kilmartin (Victor Alli).

Francesca and John bond through their similarly introverted and reserved dispositions. In the season three finale, they get married in a small ceremony and make arrangements to move to John's primary estate in Scotland.

In the final episode, while at the Dankworth-Finch ball, Francesca is caught off guard by the arrival of John's cousin, Michaela Stirling (Masali Baduza), who will be accompanying them to Scotland. When Francesca meets Michaela, she immediately becomes nervous and stutters as she introduces herself.

Fans familiar with Quinn's "Bridgerton" books, specifically "When He Was Wicked," already know where Francesca's story is heading, but the show sets up a different course of events for her.

In the novel, John dies two years into his marriage to Francesca and his cousin Michael Stirling becomes the new earl. Francesca and Michael reconnect years later, get married, and have two children.

Introducing a gender-swapped version of John's cousin will lead to changes in the TV show. Fans hoping for a by-the-numbers adaptation of Francesca and Michael's love story may have strong opinions on the queer story, but Brownell isn't surprised.

"I think something that has been a real growth point for me, stepping into the showrunner role, is that I've always been a people pleaser, and someone who wants to give everyone what they want — but in this job, you have to make difficult decisions," she told Teen Vogue.

Brownell said that as a queer woman, she related to Franceca's book. She also felt that it was important to incorporate a queer romance into the show that had a happy ending, "which we don't always get to see in period pieces."

Brownell, who took over as the showrunner for season three, said that she had been pitching a gender-swapped Michael since season one. When she spoke to Quinn, they discussed the potential backlash.

"We talked about the fact that with almost any single book, there would be a side of the fandom that would be disheartened to see their favorite characters changed," Brownell said. "I don't think that there is any book that wouldn't happen with, so for me, again, it came back to story, and it came back to character. Because Francesca's book resonated [with me] in the way that it did, it felt like a natural adaptation."

"Bridgerton" already has a fourth season in the works, but there has yet to be an official announcement about which character's love story will be next — though there are strong hints that Benedict might be giving up his bachelor ways soon.

Fans will likely have to wait a while before seeing how Francesca and Michaela's love story unfolds.

The show hasn't been renewed for additional seasons beyond season four, but Brownell and executive producer Shonda Rhimes already have plans for how they'd tackle future installments. In the case of Francesca, Brownell told The Hollywood Reporter that there "will definitely be a time jump at some point" to adequately show her relationships with John and Michael.

• Melinda French Gates is excited about her new lifestyle post-divorce from Bill Gates.
• French Gates told Time that she loves walking to local spots in her neighborhood.
• She bought a cottage in Seattle three weeks before the former couple filed for divorce in 2021.

Melinda French Gates is loving her new neighborhood.

The philanthropist, who divorced Bill Gates in 2021, told Time that she spent a lot of time on Redfin researching the right home for herself. French Gates reportedly found just that in the house she's been living in as a divorcée.

"I live in a neighborhood. Now I can walk to little stores. I can walk to the drugstore, I can walk to a restaurant," she told Time. "I absolutely love it."

While French Gates didn't specify where she currently resides, she bought a cottage in the North Broadway neighborhood of Seattle weeks before the former couple filed for divorce in 2021. The four-bedroom, two-bathroom home cost $1.2 million, according to documents previously viewed by Business Insider.

It's a significant downsize from Xanadu 2.0, situated on the about 10.5 acres of land Bill Gates bought in the Medina suburb of Seattle, which is worth north of $183 million.

According to Time, French Gates was never a big fan of the sprawling compound, outfitted with a 60-foot-long swimming pool, over 18 bathrooms, and 2,100-square-foot library.

Instead, it appears she prefers the simple life of strolling to her local shops, neighbors who aren't tech titans, and a home that doesn't feel "like arriving at Jurassic Park," as a former Microsoft intern once described Xanadu 2.0.

French Gates stepped down from her cochair position at the Bill & Melinda Gates Foundation in May to "move forward into the next chapter" of her philanthropy. Her resignation went into effect on June 7.

• Business Insider asked stylists and designers to share what's going out of style this summer.
• Minimalist and neutral pieces are being swapped for pops of color and vibrant prints.  
• Tenniscore is continuing to win people over, replacing typical athleisure wear.

As gas prices unexpectedly dip and grocery stores finally start lowering prices, there's a little more wiggle room in the summer budget to refresh your wardrobe.

To help get you started, Business Insider asked stylists and designers which items you should get rid of right now.

Here's what the experts said.

Say goodbye to distressed denim.

Distressed denim can look messy. It doesn't follow the current trend toward a more sophisticated and polished look, said Patrick Kenger, personal and celebrity stylist and image consultant at Pivot.

As a replacement, the stylist suggested tailored denim or linen shorts.

"These options help to achieve a polished look while remaining comfortable," he told BI. "You may also want to consider a linen blend to avoid wrinkles."

Swap out minimalist and neutral pieces for vibrant pops of color and prints.

Neutral colors and overworn solids are on their way out this summer, according to Chloe Chamberlain, designer, cofounder, and chief of design at Vitality.

Instead, consider incorporating some vibrant pops of color and fun prints into your everyday wardrobe.

Put your regular waistline clothing in the back of the closet.

Melony Huber, designer, founder, and design director of La Peony, said to put away anything that sits on your natural waistline.

"It's time to upgrade to something more interesting," she told BI. "Clothing that is high-wasted in pants or drop-waisted in dresses adds some visual interest to your styling and wardrobe."

Synthetic, non-breathable fabrics are not ideal for warm weather.

Kim Appelt, celebrity fashion stylist and author of "Style for Everybody," told BI that synthetic fabrics that don't breathe should be avoided this summer.

As a replacement, the stylist said natural fibers like cotton or linen are ideal for warmer weather.

Replace baseball caps with rancher or bucket hats.

Though baseball caps can help keep the sun off your face, Huber finds them a bit boring and outdated.

"For a fun replacement, opt for a rancher or bucket hat to instantly give off summer vibes ready for the pool or beach," the designer told BI.

Both options still have brims for sun protection, but they're slightly more elevated.

Flip-flops aren’t supportive enough for everyday wear.

According to Kenger, flip-flops are too casual for many occasions and are not supportive enough to function as everyday wear.

"Slide sandals or espadrilles provide both comfort and style and are appropriate for a multitude of summer activities," the stylist told BI.

Cargo shorts can be bulky and unflattering.

Cargo shorts are decidedly casual enough for a summer day, according to Kenger. But they often appear bulky, creating an unrefined silhouette.

"To follow the elegant trends this summer, look for tailored Bermuda shorts or chino shorts, which are much more stylish and appropriate for a broader set of occasions," he told BI.

Typical athleisure is being replaced by a more preppy style.

The new trend this summer is all about tenniscore, according to Huber and Chamberlain.

This preppy aesthetic — which includes skirts, tanktops, dresses, and accessories that would fit in on a tennis court — is replacing typical athleisure workout wear.

"It's the perfect summer fit that you will wear over and over again all summer long and be right on trend," Huber told BI.

Cheap costume jewelry can distract from your look.

Say goodbye to cheap costume jewelry this season. Appelt wants people to replace these pieces with minimalist, high-quality accessories.

Consider a pair of classic diamond studs, pearls, or gold hoops. For necklaces, the stylist said to stick to simple gold or a few fine-layered chains.

• Missouri's Kansas City Chiefs are pushing for a move across state lines.
• The NFL team wants Kansas to approve a tax incentive that would fund a brand-new stadium in the state.
• Proponents argue that if Missouri or Kansas doesn't act, the team could leave the region altogether.

The Kansas City Chiefs may be on the move.

Kansas lawmakers are gathering this week for a special legislative session and could vote on a bill that would give millions in tax incentives to expand the state's tourism and entertainment industries.

All eyes are on now the bill which, if passed, could help the reigning Super Bowl champions (as well as MLB team the Kansas City Royals) move from the Missouri side of the city to the Kansas side of the city.

At a hearing on Monday ahead of the formal start of the session, representatives for the Kansas City Chiefs and the Royals asked Kansas lawmakers to pass the bill, according to the Missouri Independent.

That legislation would give the teams hundreds of millions of dollars to help fund building new stadiums in Kansas.

"If we want to be major league, we've got to have major league teams," Korb Maxwell, an attorney who represents the Chiefs, told lawmakers on Monday, according to the Independent. "This is the greatest opportunity we've had in any generation, and it's here before us right now."

The proposed legislation would strengthen the state's Sales Tax and Revenue (STAR) Bond program, and let Kansas provide bonds that would pay for up to 70% of the cost of building brand-new stadiums for one or both of the sports teams, The Kansas City Star reported.

Under the bill, the teams would be required to spend at least $1 billion on the new stadiums and training facilities, the Missouri Independent reported.

The state would pay off the bond given to the teams over 30 years using sports gambling and lottery money, according to the Kansas City Star.

Meanwhile, Missouri legislators are fighting to keep the Chiefs for themselves. Officials in Jackson County, Missouri on Monday proposed a resolution for a countywide sales tax, local Kansas City outlet KSHB reported. Depending on how much the tax is — the current options are each just a fraction of a cent — it would either pay for capital improvements to the Chiefs' existing stadium or building a brand-new stadium in Missouri, according to the outlet.

The Chiefs' current home at the 50-year-old Arrowhead Stadium is in need of some improvement since it was last renovated in 2010.

Team President Mark Donovan said last summer the team is looking into three options: renovating the existing stadium, building a new one on-site, or moving to a new location entirely, Sports Illustrated reported.

And back in 2022, Donovan even floated the idea of moving from Missouri to Kansas, according to the outlet.

Proponents of the move argue that if something isn't done to keep the Chiefs and the Royals local to Kansas City, the teams could choose to leave the Kansas-Missouri region altogether — a development that could devastate local Taylor Swift fans.

Representatives for the Kansas City Chiefs and Royals did not immediately respond to a request for comment from Business Insider.

• Arizona opened the doors for outside investors in law firms, and Steve German had high hopes.
• But he says his co-owner, 777 Partners, was hit by scandal and didn't invest millions it promised.
• German also regulates law firms with outside investment, and says they're being "abused by hedge funds."

Two years ago, Steve German was optimistic.

He'd done well for himself as a trial lawyer in Phoenix, suing insurance companies on behalf of workers who were denied benefits. And he'd just launched a new venture with Miami investment firm 777 Partners that he hoped would revolutionize the legal business.

Arizona had recently begun permitting non-lawyers to invest in law firms, which is banned in nearly every other state. German seemed poised to ride the wave of deregulation and build what he'd later describe as "generational wealth."

State bar associations have long restricted lawyers from selling stakes in their firms to outside investors, out of a desire to protect consumers from bad advice, to keep financiers from distorting firms' ethical obligations to their clients — and to keep profits in the hands of lawyers. That meant that firms basically had to eat what they kill: any investments in marketing, technology, or building cases had to come from client fees or the firm's cut of jury awards and settlements.

Allowing private equity riches to pour into law firms was a potential game-changer. When he spoke to Business Insider in 2022, German excitedly described how he might use 777's money to take lower fees and allow clients to designate charities they'd like to benefit. He was making connections with referral sources and said he'd hired BerlinRosen, one of the better-known PR firms that works with plaintiffs' lawyers.

"It was something that was revolutionary in many ways, and it was something I saw as a way to do good," German recalled. The firm, called Scout Law Group, was one of the first such firms — known as an alternative business structure, or ABS — to be approved by state regulators.

"The ABS program reminds me of when Uber first came to town and everyone was like, 'oh my god, that's crazy,'" said Andy Kvesic, who serves on the state committee that approves ABS applications.

German's optimism was short-lived. Before 2022 came to an end, his relationship with 777 had begun to sour amid disputes over funding. Now, German has become a vocal critic of Arizona's hands-off approach to regulating these new entities.

German said 777 didn't supply money on the terms or timeline it promised and planned. While he got some funding and was able to build a portfolio of about 300 to 400 cases, German said the millions that his partner had promised never flowed. He had to whip out his own checkbook to pay vendors and employees, he said in a lawsuit filed in April alleging fraud, breach of contract, and unpaid wages. It's one of several lawsuits involving 777, which, according to Semafor, has also been under Justice Department scrutiny.

777 has not yet filed an answer to German's complaint. The firm did not respond to a request for comment.

He first decided to resign from Scout last summer, a few months after the firm and its leaders filed licensing paperwork with state regulators that he said he now believes was incomplete. But he told Business Insider that after he forwarded his "break-up letter" to state regulators, he came to regret the decision; it touched off a bar investigation and resulted, for a period, in the suspension of Scout's license. He ended up rescinding the resignation and sticking around until 777 picked a new compliance lawyer in December, he said.

After all that, he expected that the firm and its new leaders' license application would be closely scrutinized. He said the steady drumbeat of negative reporting made it clear that 777 hadn't been upfront about the controversies it was involved in.

But, he said, the committee that reviews ABS applications renewed Scout's license with barely any discussion. German also sits on the committee, and he was recused from the decision. But he said that and subsequent board decisions, like giving a pass to a lawyer who failed to mention that he'd been suspended in another state, unsettled him.

"What we're doing is sending the wrong message," he said. "What we're saying is, don't disclose your bad stuff."

Regulators approved 777 Partners despite litigation, DOJ probe

German isn't the first business partner to sue 777 Partners, and he may not be the last. After the firm began investing in soccer clubs, Brazil's news outlet O Globo reported that one of its owners, Josh Wander, was until 2018 on probation for a cocaine-related charge. (At the time, 777 called it "ancient history.") The firm's reliance on insurance premiums, which are normally invested conservatively to ensure future claims can be paid, to fund its risky bets in sports teams and other speculative investments was unearthed by Semafor, and insurance regulators and business partners have been asking questions and filing lawsuits.

But German said on some level, it's about more than money. Revelations about 777's other business lines — for instance, its work with online payday lenders that charge sky-high interest rates and pay Native American tribes to use their sovereign immunity as a legal shield — repulsed him when he learned about them last July after reading about it in the soccer publication Josimar, he said.

Asked how he didn't know about the controversies until 2023, German said he'd asked Steven Pasko, one of 777's principals, if they were the subject of any lawsuits while he was filling out ABS licensing paperwork, and he had denied it. He said he still didn't know how the controversies didn't come to the attention of ABS committee staff.

"These people are the exact opposite of who should be approved," he said. "We're supposed to be looking out for the public interest, and we're letting in guys who are sued for RICO?"

ABS committee minutes show that Scout's renewal application passed 5-1, with two recusals and two absences. According to the committee's most recent annual report, 25 new entities got a green light last year; one application was denied. The number of complaints jumped from zero in 2022 to 24 in 2023, though no discipline was imposed on any of the four entities that were the subject of complaints.

Lynda Shely, an Arizona legal ethics lawyer who is also a member of the committee, said she would not comment specifically on German's dispute with 777 and Scout, which she has advised. She was also recused from the vote on Scout's renewal application. But she pushed back on the idea that Arizona was being too permissive, saying many applications don't even make it to a vote because of the heavy scrutiny applied by committee staff. Funding and marketing firms were cutting deals with law firms in non-public arrangements for years before Arizona changed its rules, she added.

"There's a whole lot of disclosure that occurs through our model," she said. "There's more transparency about the relationship with an ABS."

As Business Insider reported in 2022, Arizona's ABS structure has unleashed a wave of experimentation. In some entities, lawyers and accountants are working side-by-side to serve clients better, and in others, technologists are helping traditional law firms work more efficiently, with the potential to share in the upside. Advocates see it as a way for lawyers to sell packages of valuable services, instead of selling billable hours.

But one of the most common uses of an ABS has been for personal-injury and mass-tort attorneys to team up with funders and marketers more directly than is possible under legal ethics rules in other states.

Defenders of traditional law firm structures say lawyers take an oath to do what's best for their clients. They argue that involving outside funders in firm management creates a risk that profits come first and clients come second.

But some advocates for systems like Arizona's say those risks can be managed by requiring lawyers to have the final say, keeping a close eye on the new firms, and taking complaints seriously. They say there's nothing wrong with lawyers using outside money to reach more injured clients, who may not know where to turn when facing medical bills from car wrecks and dangerous drugs.

"So far, it is a success," said Shely. "Like any new program, [we] will have growing pains and need to adjust and tweak things as we go."

For much of 2023, German said, he expressed his discontent with 777's leadership, including its general counsel Ed Gehres and its chief financial officer Damian Alfalla. He said he had conversations with other investors about buying 777's stake in Scout, but the talks ultimately went nowhere. He said other investors wanted to borrow money against Scout's unearned contingency fees, which could have made it impossible for those clients to find a new lawyer if they had to leave Scout for some reason.

Gehres and Alfalla didn't respond to emails seeking comment.

In the wake of his own dispute with 777, he said he has become alarmed by the permissive approach the state has taken toward licensing and thinks more scrutiny is needed. He said he still believes that the ABS model has the potential to fill gaps in the legal marketplace, but he said greenlighting any applicant — many of which have little connection to Arizona — is a mistake.

Allowing outside investment into law firms, he said, "is a privilege. It serves a purpose for access to justice. It's not for a billionaire equity fund to use to game the process."