Business
Delta’s struggles with the airport lounge and the angst of the upper middle class in the age of ‘elite overproduction,’ explained
Published
4 months agoon
By
Jace Porter
Delta Air Lines is having a good 2025, reporting strong second-quarter earnings and reinstating its April profit guidance, leading to a substantial stock bump (up roughly 16% from June to July). True, its guidance is down from its January projections, but it’s weathering the storm of the tricky global economy well, maintaining its status as America’s leading premium airline. As Fortune‘s Shawn Tully reported in March 2025, it has somehow managed the trick of being America’s most profitable airline, while giving billions back to employees in the form of profit sharing.
At the start of the year, CEO Ed Bastian kicked off a celebration of Delta’s centenary by announcing “a new era in premium travel” with the opening of Delta One lounges, a step above its usual Sky Clubs. The Delta One locations will offer “amenities for the premium traveler” ranging from fine dining to spa-like wellness treatments and valet services. Bastian clarified that Delta will continue to invest in its Delta Sky Clubs, with more openings planned to come.
But there is more to the story for Delta, America’s leading premier airline. The Sky Clubs are coming off years of turbulence, with significant customer backlash following several of Delta’s attempts to improve a lounge experience that has become overcrowded. These problems date back several years, to the beginning of the “revenge travel” boom that accompanied post-pandemic reopening. Bastian told Fortune in 2022 that even he was shocked by the level of demand: “People talk about revenge travel, or pent-up travel—this is beyond anything that people can classify as truly pent-up,” he said, adding that his team calculated a whopping $300 billion burst of travel thirst. “That gap is $300 billion—with a B,” Bastian emphasized.
America’s leading premium airline has long offered a standard lounge experience through its Sky Clubs, with free wi-fi, buffets of cold snacks and heated steam trays, and a range of complimentary drinks. The Sky Clubs were no match for the burst of revenge travelers. Bastian’s efforts to fix these problems in 2023—barring Basic Economy passengers and capping the number of visits allowed for credit card holders—sparked backlash on customers’ part and soul-searching for Bastian. “We are victims of our own success,” he told Fast Company‘s Stephanie Mehta in 2024, as he explained changes to benefits including access to Sky Club lounges. “It’s hard to tell someone who’s been at a certain status for many years that what they’ve earned is no longer as valuable.”
That’s why the declining pleasure of the airport lounge resonates for a deeper reason: it’s a metaphor for the declining prospects of the upper middle class in an age of “elite overproduction,” which argues that certain societies grow so rich and successful that they produce too many people of premium education for the number of premium jobs—or premium experiences—that the economy can actually support.
The elites have been so overproduced that you can literally see them—in lines stretching out of airport lounges.
The elite lounge overproduction theory
Several factors make Delta’s overcrowding issue particularly severe, and they have to do with how Delta is really trying—and, as Bastian says, succeeding—in offering a premium service to a large, affluent customer base. Delta offers more comprehensive food and beverage options than many competitors, so travelers linger longer, compounding capacity issues. Indeed, when reached for comment, Delta confirmed that its SkyMiles program has seen “unprecedented engagement,” and its member satisfaction is higher than ever. Delta said it’s committed to continuous investment to further please customers, which includes “modernizing and expanding our lounges.”
Generous lounge access deals with American Express (including non-Delta-branded Platinum Card holders) have greatly expanded eligibility, overwhelming facilities. As more travelers achieve status or purchase high-tier tickets, both due to credit card spending and business travel rebounds, demand for lounge space has increased beyond what legacy facilities can handle.
Delta isn’t alone in its lounge struggles, as shown by its partner, American Express, which has tried to physically expand many of its Centurion Lounges. Those have gone from the epitome of exclusivity and comfort to another kind of crowded waiting room—albeit with arguably better snacks and Wi-Fi.
The root of the problem is the same: too many people now have access. The proliferation of premium credit cards, airline status programs, and paid day passes has democratized lounge entry, eroding the exclusivity that made these spaces desirable in the first place. It is unclear if Delta expanded too far, too fast, or if it was surprised by the number of lounge lovers in its clientele. UBS Global Wealth Management has noted a surprising trend in the upper middle class: the rise of the “everyday millionaire,” or people whose assets fall between $1 million and $5 million. These are exactly the kind of people who would see themselves as lounge-worthy, and likely frustrated to find their small-M millionaire status doesn’t go so far.
The consequences for travelers are palpable. Social media and travel forums are rife with stories of travelers paying hundreds of dollars in annual fees only to find long lines clogging, say, New York’s JFK terminals on a daily basis. The proof is abundant on TikTok. On the other hand, expectations are heightened. Travel research firm Airport Dimensions has conducted an “airport experience report” for over a decade and found in 2024 that airport lounges are a contradiction: the definitive democratic travel luxury.
This widespread expectation—and dissatisfaction—is not just a matter of comfort. For many, the lounge was a symbol of having “made it”—a reward for loyalty, status, or financial success. Its decline has become a source of frustration and even embarrassment, especially for those who remember a more exclusive era. There’s an emotional trigger behind an unpleasant lounge experience.
The theory behind the malaise: elite overproduction
The overcrowding of airport lounges is more than a logistical headache—it’s a microcosm of a broader societal phenomenon. University of Connecticut professor emeritus Peter Turchin has developed a controversial theory of “elite overproduction” which posits that frustration and even instability result when a society produces more people aspiring to elite status than there are elite positions. It’s an unorthodox theory from an unorthodox academic: Turchin is an emeritus professor at UConn, research associate at the University of Oxford and project leader at the Complexity Science Hub-Vienna, leading research in a field of his own invention: Cliodynamics, a type of historical social science.
The catch with Turchin’s theory is that his own type of complexity science takes on a pseudo-prophetic quality, similar in some ways to William Strauss and Neil Howe’s “Fourth Turning.” And Turchin has foreseen that the United States has reached a stage repeated in civilizations throughout history, when it has produced too many products of elite education and social status for the realistic number of jobs it can generate. Decline and fall follows, Roman Empire-style. The Atlantic profiled Turchin in 2020, warning “the next decade could be even worse.” Several writers have expanded on his ideas since then, approaching it from their distinctive and different sensibilities.
Ritholtz Wealth Management COO Nick Maggiulli posted to his “Of Dollars and Data” blog on the subject of airport lounges specifically, writing that the “death of the Amex lounge” simply shows that “the upper middle class isn’t special anymore,” although he did not specifically link this to the concept of elite overproduction. “There are too many people with lots of money,” he concluded.
In the context of airport lounges, the “elite” are not just the ultra-wealthy, but the vast upper middle class—armed with a combination of higher degrees, status, and premium credit cards—now jostling for the same perks. But what if much of society has been turning into some version of an overcrowded airport lounge?
In an interview with Fortune Intelligence, Turchin said this theory makes sense and fits with his thesis when presented with the similarities. “The benefits that you get with wealth are now being diluted because there are just too many wealth holders,” he said, citing data that the top 10% of American society has gotten much wealthier over the past 40 years. (Turchin sources this statement to this working paper from Edward Wolff.)
Turchin said lounges are not by definition restricted from expansion in the same way that political offices are, with a core element of his thesis being there are too many sociopolitical elites for the number of positions open to them, but “it’s the same thing” in light of the difficulties many providers have in expanding lounge access. “There is a limited amount of space, but many more elites now, so to speak … low-rank elites.” Turchin said these low-rank elites, or “ten-percenters,” don’t have the status typically associated with elite status. “The overproduction of lower-ranking elites results in decreased benefits for all.”
When asked where else he sees this manifesting in modern life, Turchin said “it’s actually everywhere you look. Look at the overproduction of university degrees,” he added, arguing that declining rates of college enrollment and high rates of recent graduate unemployment support the decreasing value of a college diploma. “There is overproduction of university degrees and the value of university degree actually declines. And so the it’s the same thing [with] the lounge.”
Noah Smith argues that elite overproduction manifests as a kind of status anxiety and malaise among the upper middle class. Many find themselves struggling to afford or access the very symbols of success they were promised—be it a prestigious job, a home in a desirable neighborhood, or, indeed, a peaceful airport lounge. He collects reams of employment data to show that Turchin’s theory has significant statistical support from the 21st century American economy.
Freddie DeBoer largely agrees, framing the issue as “why so many elites feel like losers.” He focuses more on the creator economy than Smith, but asserts that he sees “think many would agree with me about “a pervasive sense of discontent among people who have elite aspirations and who feel that their years toiling in our meritocratic systems entitles them to fulfill those aspirations.”
Delta’s plan to restore status
In its lounge strategy, Delta is trying to walk a fine line: Offering a premium service to a class of consumers that is becoming more and more mass-market. CEO Ed Bastian acknowledged as much on the company’s latest earnings call. While touting the fortunes of Delta’s target customers, households making $100,000 or more a year, Bastian noted the income cutoff “is not, by the way, an elite definition—that’s 40% of all U.S. households.”
Beginning February 2025, Delta implemented new caps on annual lounge visits for American Express cardholders, setting a maximum of 15 visits per year and requiring exceptionally high annual spending ($75,000+) to re-unlock unlimited access. Basic Economy passengers, meanwhile, are permanently excluded from lounge access, further tightening entry. Travelers can only enter lounges within three hours of their flight’s departure time, discouraging extended stays and unnecessary early arrivals.
Delta is opening and upgrading lounges in key markets: New Delta One Lounges in Seattle, New York-JFK, Boston, and Los Angeles feature larger spaces, exclusive amenities, and new design concepts for premium passengers. Major expansions are under way in hubs like Atlanta, Orlando, Salt Lake City, and Philadelphia, with multiple new or enlarged clubs opening between spring and late 2025—some over 30,000 square feet in size, making them among the largest in the network. Renovations to existing lounges (e.g., Atlanta’s Concourses A and C) are aimed at maximizing capacity and improving guest experiences. Delta is also exploring emergency overflow options and flexible staffing to address unpredictable surges, especially during weather and operational delays.
Delta executives are optimistic. They predict that by 2026, most crowding issues—aside from extreme disruptions—will be resolved on “almost all days.” Continued investments in larger, better-designed lounges, coupled with tighter access controls, are expected to restore the premium experience customers expect.
However, critics note that crowding still occurs at peak times, especially in flagship locations, and design/layout flaws occasionally undermine even the newest clubs. The success of Delta’s fix-it agenda is being closely watched by both rivals and loyal travelers.
But Delta may be overmatched in rehabilitating the overcrowded airport lounge as a potent symbol of this broader malaise. What was once a marker of distinction is now a crowded, noisy, and often disappointing experience. The democratization of luxury, while laudable in some respects, has left many feeling that the rewards of success are increasingly out of reach—or at least, not what they used to be.
As airlines grapple with how to restore the magic of the lounge, they are also confronting a deeper truth: in an age of elite overproduction, the promise of exclusivity is harder than ever to keep.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
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Business
The $124 trillion Great Wealth Transfer is intensifying as inheritance jumps to a new record
Published
9 minutes agoon
December 6, 2025By
Jace Porter
Nearly $300 billion was inherited this year as the Great Wealth Transfer picks up speed, showering family members with immense windfalls.
According to the latest UBS Billionaire Ambitions Report, 91 heirs inherited a record-high $297.8 billion in 2025, up 36% from a year ago despite fewer inheritors.
“These heirs are proof of a multi-year wealth transfer that’s intensifying,” Benjamin Cavalli, head of Strategic Clients & Global Connectivity at UBS Global Wealth Management, said in the report.
Western Europe led the way with 48 individuals inheriting $149.5 billion. That includes 15 members of two “German pharmaceutical families,” with the youngest just 19 years old and the oldest at 94.
Meanwhile, 18 heirs in North America got $86.5 billion, and 11 in South East Asia received $24.7 billion, UBS said.
This year’s wealth transfer lifted the number of multi-generational billionaires to 860, who have total assets of $4.7 trillion, up from 805 with $4.2 trillion in 2024.
Wealth management firm Cerulli Associates estimated last year that $124 trillion worldwide will be handed over through 2048, dubbing it the Great Wealth Transfer. More than half of that amount will come from high-net-worth and ultra-high-net-worth people.
Among billionaires, UBS expects they will likely transfer about $6.9 trillion by 2040, with at least $5.9 trillion of that being passed to children, either directly or indirectly.
While the Great Wealth Transfer appears to be accelerating, it may not turn into a sudden flood. Tim Gerend, CEO of financial planning giant Northwestern Mutual, told Fortune’s Amanda Gerut recently that it will unfold more gradually and with greater complexity.
“I think the wealth transfer isn’t going to be just a big bang,” he said. “It’s not like, we just passed peak age 65 and now all the money is going to move.”
Of course, millennials and Gen Zers with rich relatives aren’t the only ones who sat to reap billions. More entrepreneurs also joined the ranks of the super rich.
In 2025, 196 self-made billionaires were newly minted with total wealth of $386.5 billion. That trails only the record year of 2021 and is up from last year, which saw 161 self-made individuals with assets of $305.6 billion.
But despite the hype over the AI boom and startups with astronomical valuations, some of the new U.S. billionaires come from a range of industries.
UBS highlighted Ben Lamm, cofounder of genetics and bioscience company Colossal; Michael Dorrell, cofounder and CEO of infrastructure investment firm Stonepeak; as well as Bob Pender and Mike Sabel, cofounders of LNG exporter Venture Global.
“A fresh generation of billionaires is steadily emerging,” UBS said. “In a highly uncertain time for geopolitics and economics, entrepreneurs are innovating at scale across a range of sectors and markets.”
Business
Apple rocked by executive departures, with chip chief at risk of leaving next
Published
40 minutes agoon
December 6, 2025By
Jace Porter
Apple Inc., long the model of stability in Silicon Valley, is suddenly undergoing its biggest personnel shake-up in decades, with senior executives and key engineers both hitting the exits.
In just the past week, Apple’s heads of artificial intelligence and interface design stepped down. Then the company announced that its general counsel and head of governmental affairs were leaving as well. All four executives have reported directly to Chief Executive Officer Tim Cook, marking an exceptional level of turnover in Apple’s C-suite.
And more changes are likely coming. Johny Srouji — senior vice president of hardware technologies and one of Apple’s most respected executives — recently told Cook that he is seriously considering leaving in the near future, according to people with knowledge of the matter. Srouji, the architect of Apple’s prized in-house chips effort, has informed colleagues that he intends to join another company if he ultimately departs.
At the same time, AI talent has been fleeing for tech rivals — with Meta Platforms Inc., OpenAI and a variety of startups poaching many of Apple’s engineers. That threatens to hamper the company’s efforts to catch up in artificial intelligence, an area where it’s struggled to make a mark.
It all adds up to one of the most tumultuous stretches of Cook’s tenure. Though the CEO himself is unlikely to leave imminently, the company has to rebuild its ranks and figure out how to thrive in the AI era.
Within the company, some of the departures are cause for deep concern — with Cook looking to stave off more with stronger compensation packages for key talent. In other cases, the exits just reflect the fact that veteran executives are nearing retirement age. Still, many of the shifts constitute a disconcerting brain drain.
While Cook maintains that Apple is working on the most innovative product lineup in its history — a slate that’s expected to include foldable iPhones and iPads, smart glasses, and robots — Apple hasn’t launched a successful new product category in a decade. That leaves it vulnerable to poaching from a range of nimbler rivals better equipped to develop the next generation of devices around AI.
A spokesperson for Cupertino, California-based Apple declined to comment.
The exit of Apple’s AI chief, John Giannandrea, followed a number of stumbles in generative AI. The company’s Apple Intelligence platform has suffered from delays and subpar features. And a highly touted overhaul to the Siri voice assistant is roughly a year and a half behind schedule. Moreover, the software will rely heavily on a partnership with Alphabet Inc.’s Google to fill the gaps in its capabilities.
Against that backdrop, Apple began phasing Giannandrea out of his role in March but is allowing him to remain until next spring.
Within Apple, employees have long expected Giannandrea to step aside — and some have expressed surprise that he’s sticking around as long as he is.
But parting ways with Giannandrea sooner would have been taken as public acknowledgment of a problem, people familiar with the situation said.
Design veteran Alan Dye, meanwhile, is heading to Meta’s Reality Labs unit — a remarkable defection to one of Apple’s fiercest rivals.
Within a day of that news, Apple turned around and announced that it had poached one of Meta’s executives. Jennifer Newstead, chief legal officer at the social networking company, will become Apple’s general counsel. She helped oversee Meta’s successful antitrust battle with the US Federal Trade Commission — experience that’s likely to prove useful in Apple’s own legal fight with the Justice Department over alleged anticompetitive practices.
Read More: Apple Taps Meta Lawyer as General Counsel in Latest Shake-Up
Newstead is taking over for Kate Adams, who served eight years in the role and will retire in late 2026. Lisa Jackson, vice president for environment, policy and social initiatives, is retiring as well — and her duties will be divided up among other executives.
Though the news of Adams’ departure was jarring — especially considering the number of Apple legal disputes currently on her plate — she’s had a fairly long tenure for a general counsel at the company.
Jackson, meanwhile, was widely expected to be leaving soon. The former Obama administration official has kept a lower profile during President Donald Trump’s second term, opting to dispatch deputies to handle discussions with the White House. Bloomberg News had previously reportedthat she was considering retirement.
These exits follow an even bigger departure. Jeff Williams, Cook’s longtime No. 2, retired last month after a decade as chief operating officer. Another veteran leader, Chief Financial Officer Luca Maestri, stepped into a smaller role at the start of 2025 and is likely to retire in the not-too-distant future.
The flurry of retirements reflects a demographic reality for Apple. Many of its most senior executives have been at the company for decades and are roughly the same age — either in their 60s or nearing it.
Cook turned 65 last month, fueling speculation that he would join the exodus. People close to the executive have said that he’s unlikely to leave soon, though succession planning has been underway for years. John Ternus, Apple’s 50-year-old hardware engineering chief, is considered by employees to be the frontrunner CEO candidate.
When Cook does step down, he’s likely to shift into the chairman job and maintain a high level of influence over the iPhone maker. That makes it unlikely that Apple will select an outsider as the next CEO, even as executives like Nest Labs founder Tony Fadell are being pushed as candidates by people outside the company. Though Fadell helped invent Apple’s iconic iPod, he left the tech giant 15 years ago on less-than-friendly terms.
For now, Cook remains active at Apple and travels extensively on behalf of the company. However, the executive does have an unexplained tremor that causes his hands to shake from time to time — something that’s been discussed among Apple employees in recent months.
The shaking has been noticed by both executives and rank-and-file staff during meetings and large company gatherings, according to people familiar with the matter. But people close to Cook say he is healthy and refute rumors to the contrary that have circulated in Silicon Valley.
Read More: The Apple Insiders in the Running to Succeed Cook
A more imminent risk is the departure of Srouji, the chip chief. Cook has been working aggressively to retain him — an effort that included offering a substantial pay package and the potential of more responsibility down the road. One scenario floated internally by some executives involves elevating him into the role of chief technology officer. Such a job — overseeing a wide swath of both hardware engineering and silicon technologies — would potentially make him Apple’s second-most-powerful executive.
But that change would likely require Ternus to be promoted to CEO, a step the company may not be ready to take. And some within Apple have said that Srouji would prefer not to work under a different CEO, even with an expanded title.
If Srouji does depart, which isn’t yet a certainty, the company would likely tap one of his two top lieutenants — Zongjian Chen or Sribalan Santhanam — to replace him.
The recent shifts are already reshaping Apple’s power structure. More authority is now flowing to a quartet of executives: Ternus, services chief Eddy Cue, software head Craig Federighi and new COO Sabih Khan. Apple’s AI efforts have been redistributed across its leadership, with Federighi becoming the company’s de facto AI chief.
Ternus is also poised to take a starring role next year in the celebration of Apple’s 50th anniversary, further raising his profile. And he’s been given more responsibility over robotics and smart glasses — two areas seen as future growth drivers.
Further reorganization is likely. Deirdre O’Brien, head of retail and human resources, has been with Apple for more than 35 years, while marketing chief Greg Joswiak has spent four decades at the company. Apple has elevated the key lieutenants under both executives, preparing for their eventual retirements.
At the same time, Apple is contending with a talent drain in its engineering ranks. This has become a serious concern for the executive team, and Apple’s human resources organization has been instructed to ramp up recruitment and retention efforts, people familiar with the situation said.
Robby Walker, who had overseen Siri and an initiative to build a ChatGPT-like search experience, left the company in October. His replacement, Ke Yang, departed after only weeks in the job, joining Meta’s new Superintelligence Labs.
To help fill the void left by Giannandrea, Apple hired Google and Microsoft Corp. alum Amar Subramanya as vice president of artificial intelligence. He’ll report to Federighi, the software chief.
But there’s been a broader collapse within Apple’s artificial intelligence organization, spurred by the departure of AI models chief Ruoming Pang. Pang, along with colleagues such as Tom Gunter and Frank Chu, went to Meta, which has used eye-popping compensation packages to lure talent.
Roughly a dozen other top AI researchers have left the organization, which is suffering from low morale. The company’s increasing use of external AI technology, such as Google’s Gemini, has been a particular concern for employees working on large language models.
Apple’s AI robotics software team has also seen widespread departures, including its leader Jian Zhang, who likewise joined Meta. That group is tasked with creating underlying technology for products such as a tabletop robot and a mobile bot.
The hardware team for the tabletop device, code-named J595, has been bleeding talent too — with some headed to OpenAI. Dye also was a key figure overseeing that product’s software design.
Read More: Apple’s AI Push to Hinge on Robots, Security, Lifelike Siri
The user interface organization has been hit as well, with several team members leaving between 2023 and this year. That attrition culminated in Dye’s exit, which stemmed partly from a desire to integrate AI more deeply into products and a feeling that Apple hasn’t been keeping pace in the area. Another top interface leader under Dye, Billy Sorrentino, also left for Meta.
The hardware side of the design group — the team responsible for the physical look and feel of Apple’s products — has been nearly wiped out over the last half-decade. Many staffers followed former design chief Jony Ive to his studio, LoveFrom, or went to other companies.
Longtime interface designer Stephen Lemay is now stepping in as Dye’s replacement. Cook is also taking on more responsibility for overseeing design, a role that had been held by Williams.
Ive, a visionary designer who helped create the iPhone, iPad and Apple Watch, is now working with OpenAI to develop a new generation of AI-enhanced devices. That company acquired Ive’s startup, io, for more than $6 billion to jump-start its hardware business — setting its sights on Apple’s territory.
Like Meta, OpenAI has become a key beneficiary of Apple’s talent flight. The San Francisco-based company has hired dozens of Apple engineers across a wide range of fields, including people working on the iPhone, Mac, camera technology, silicon design, audio, watches and the Vision Pro headset.
In a previously unreported development, the AI company is hiring Apple’s Cheng Chen, a senior director in charge of display technologies. His purview included the optics that go into the Vision Pro headset. OpenAI recruited Tang Tan, one of Apple’s top hardware engineering executives, two years ago.
Read More: Apple’s Star Designer Who Introduced iPhone Air Leaves Company
And over the summer, the company lost the dean of Apple University, the internal program designed to preserve the company’s culture and practices after the passing of co-founder Steve Jobs. Richard Locke, who spent nearly three years at Apple, left to become dean of the Massachusetts Institute of Technology’s business school.
Business
Epstein grand jury documents from Florida can be released by DOJ, judge rules
Published
1 hour agoon
December 6, 2025By
Jace Porter
A federal judge on Friday gave the Justice Department permission to release transcripts of a grand jury investigation into Jeffrey Epstein’s abuse of underage girls in Florida — a case that ultimately ended without any federal charges being filed against the millionaire sex offender.
U.S. District Judge Rodney Smith said a recently passed federal law ordering the release of records related to Epstein overrode the usual rules about grand jury secrecy.
The law signed in November by President Donald Trump compels the Justice Department, FBI and federal prosecutors to release later this month the vast troves of material they have amassed during investigations into Epstein that date back at least two decades.
Friday’s court ruling dealt with the earliest known federal inquiry.
In 2005, police in Palm Beach, Florida, where Epstein had a mansion, began interviewing teenage girls who told of being hired to give the financier sexualized massages. The FBI later joined the investigation.
Federal prosecutors in Florida prepared an indictment in 2007, but Epstein’s lawyers attacked the credibility of his accusers publicly while secretly negotiating a plea bargain that would let him avoid serious jail time.
In 2008, Epstein pleaded guilty to relatively minor state charges of soliciting prostitution from someone under age 18. He served most of his 18-month sentence in a work release program that let him spend his days in his office.
The U.S. attorney in Miami at the time, Alex Acosta, agreed not to prosecute Epstein on federal charges — a decision that outraged Epstein’s accusers. After the Miami Herald reexamined the unusual plea bargain in a series of stories in 2018, public outrage over Epstein’s light sentence led to Acosta’s resignation as Trump’s labor secretary.
A Justice Department report in 2020 found that Acosta exercised “poor judgment” in handling the investigation, but it also said he did not engage in professional misconduct.
A different federal prosecutor, in New York, brought a sex trafficking indictment against Epstein in 2019, mirroring some of the same allegations involving underage girls that had been the subject of the aborted investigation. Epstein killed himself while awaiting trial. His longtime confidant and ex-girlfriend, Ghislaine Maxwell, was then tried on similar charges, convicted and sentenced in 2022 to 20 years in prison.
Transcripts of the grand jury proceedings from the aborted federal case in Florida could shed more light on federal prosecutors’ decision not to go forward with it. Records related to state grand jury proceedings have already been made public.
When the documents will be released is unknown. The Justice Department asked the court to unseal them so they could be released with other records required to be disclosed under the Epstein Files Transparency Act. The Justice Department hasn’t set a timetable for when it plans to start releasing information, but the law set a deadline of Dec. 19.
The law also allows the Justice Department to withhold files that it says could jeopardize an active federal investigation. Files can also be withheld if they’re found to be classified or if they pertain to national defense or foreign policy.
One of the federal prosecutors on the Florida case did not answer a phone call Friday and the other declined to answer questions.
A judge had previously declined to release the grand jury records, citing the usual rules about grand jury secrecy, but Smith said the new federal law allowed public disclosure.
The Justice Department has separate requests pending for the release of grand jury records related to the sex trafficking cases against Epstein and Maxwell in New York. The judges in those matters have said they plan to rule expeditiously.
___
Sisak reported from New York.
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