Please ensure Javascript is enabled for purposes of website accessibility

States’ $7.4B settlement with Purdue Pharma nears closure

Fifty-five attorneys general have agreed to sign on to a $7.4 billion nationwide with and its owners, the family, the Virginia attorney general’s office announced Monday. If the settlement is approved by the federal bankruptcy court, Virginia would receive up to $103.8 million over the next 15 years.

According to state ‘ statement, the Sackler family has “indicated its plan to proceed with the settlement,” allowing them to resolve litigation for Purdue’s alleged role in causing widespread .

Although the sign-off by attorneys general from all eligible states and U.S. territories is a significant benchmark in reaching the settlement, which was announced in January, a federal bankruptcy judge must approve the deal before it goes into effect. A hearing is expected to be held in coming days, Miyares said.

In 2024, the U.S. Supreme Court overturned an earlier settlement agreement for $4.3 billion, in part because that agreement would have protected the Sackler family from future civil liability claims, which the new settlement does not include.

Virginia plans to invest the $103.8 million in settlement funding into local prevention, treatment and recovery for opioid addiction, Miyares said in the statement.

“The Sacklers spent years fueling an epidemic that shattered families, wrecked communities and cost hundreds of thousands of American lives,” Miyares said. “Though no amount of money will ever bring back those we’ve lost or undo the incomprehensible level of harm caused, these settlement funds will be invested in treatment, prevention and recovery efforts across Virginia, helping our communities heal and saving lives.”

According to the settlement terms, the Sackler family will no longer own Purdue Pharma, the maker of , or be allowed to sell opioid drugs in the United States. The family members will pay $1.5 billion, and Purdue will pay the other $5.9 billion in installments, with most of the settlement funds distributed in the first three years of the deal.

Wall Street is recovering from Friday’s shock with US stocks up and oil prices down

SUMMARY:

  • U.S. stocks rise following Israel’s strike on Iran.
  • up 0.7%, Dow gains 280 points, up 0.9%.
  • follow with gains across Asia and Europe.
  • fall over 1.5% as conflict fears ease.

 

NEW YORK (AP) — Some calm is returning to , and U.S. stocks are rising on Monday, while oil prices are giving back some of their initial spurts following Israel’s attack on Iranian nuclear and military targets at the end of last week.

The S&P 500 was 0.7% higher in early trading and on track to reclaim more than half of its drop from Friday. The Industrial Average was up 280 points, or 0.7%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.9% higher. They joined a worldwide rise in stock prices, stretching from Asia to Europe.

Israel and Iran are continuing to attack each other, and a fear remains that a wider war could constrict the flow of Iran’s oil to its customers. But past conflicts in the region have seen crude prices spike only temporarily. They’ve receded after the fighting showed that it would not damage the flow of oil, either Iran’s or other countries’ through the narrow Strait of Hormuz off Iran’s coast.

Hopes that the fighting could remain similarly contained this time around sent the price of a barrel of benchmark U.S. oil down 1.6% to $71.82 on Monday. Brent crude, the international standard, fell 1.7% to $72.97. Both had jumped roughly 7% on Friday after the initial attacks.

In another signal of calming worries, the price of gold also gave back some of Friday’s knee-jerk climb, when investors were looking for someplace safe to park their cash. An ounce of gold slipped 0.5% to $3,433.90.

Wall Street has plenty of other concerns in addition to the fighting in Iran and Israel. Key among them is President ‘s , which still threaten to slow the economy and raise if trade deals aren’t made with other countries to reduce Trump’s taxes on imports.

The United States is meeting with six of the world’s largest economies in Canada for a Group of Seven meeting, with the specter of tariffs looming over the talks.

Later this week, the Federal Reserve is set to discuss whether to lower or raise interest rates, with the decision due on Wednesday.

The Federal Reserve has been hesitant to lower interest rates, and it’s been on hold this year after cutting at the end of last year, because it’s waiting to see how much Trump’s tariffs will hurt the economy and raise inflation. Inflation has remained relatively tame recently, and it’s near the Fed’s target of 2%.

While lower rates can goose the economy by encouraging businesses and households to borrow, they can also accelerate inflation.

In the bond market, the yield on the 10-year Treasury rose to 4.43% from 4.41% late Friday. The two-year Treasury yield, which more closely tracks expectations for what the Fed will do with its overnight interest rate, was holding steady at 3.96%, where it was late Friday.

In stock markets abroad, indexes rose modestly across Europe and jumped a bit more in much of Asia.

Stocks climbed 0.7% in Hong Kong and 0.3% in Shanghai after data showed stronger Chinese consumer spending for May but slower growth in factory activity and investment.

South Korea’s Kospi climbed 1.8%, and Japan’s Nikkei 225 rallied 1.3% for two of the world’s bigger gains.

___

AP Writer Jiang Junzhe contributed.

G7 summit begins amid global conflict, trade tensions

SUMMARY:

  • begins Monday in Canada’s Rocky Mountains.
  • U.S. President Trump’s have sparked global concern.
  • Ongoing wars in Ukraine and Gaza overshadow the meeting.
  • Rising Israel-Iran conflict adds urgency to

 

KANANASKIS, Alberta (AP) — When U.S. President last came to Canada for a Group of Seven summit, the enduring image was of him seated with his arms folded defiantly as then-German Chancellor Angela Merkel stared daggers at him.

If there is a shared mission at this year’s G7 summit, which begins Monday in Canada’s Rocky Mountains, it is a desire to minimize any fireworks at a moment of combustible tensions.

The 2018 summit ended with Trump assailing his Canadian hosts on social media as he departed on Air Force One, saying he had instructed the U.S. officials who remained in Quebec to oppose the G7 joint statement endorsed by the leaders of Japan, France, the United Kingdom, Italy, Germany and, of course, Canada.

“I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!” Trump posted on the site then known as Twitter.

This time, Trump already has hit several dozen nations with severe tariffs that risk a global economic slowdown. There is little progress on settling the wars in Ukraine and Gaza and now a new and escalating conflict between Israel and Iran over Tehran’s nuclear program.

Add to all of that the problems of climate change, immigration, drug trafficking, new technologies such as artificial intelligence and China’s continued superiority and chokehold on key supply chains.

Asked if he planned to announce any trade agreements at the G7 as he left the White House on Sunday, Trump said: “We have our trade deals. All we have to do is send a letter, ‘This is what you’re going to have to pay.’ But I think we’ll have a few, few new trade deals.”

At stake might be the survival of the G7 itself at a time when the has sent mixed signals about whether the president will attend the November Group of 20 summit in South Africa.

What Trump opposed at the 2018 summit in Quebec wasn’t just tariffs, but a focus on having alliances with a shared set of standards seeking to shape policies.

“The big dispute in Quebec were the references to the rules-based international order and that’s where that famous photo comes from,” said Peter Boehm, Canada’s counselor at the 2018 G7 summit in Quebec and a veteran of six G7 summits. “I think it gave everyone the idea that G7s were maybe not business as usual.”

The German, U.K., Japanese and Italian governments have each signaled a belief that a friendly relationship with Trump this year can reduce the likelihood of outbursts.

“Well, I have got a good relationship with President Trump, and that’s important,” U.K. Prime Minister Keir Starmer said Saturday as he flew to Canada.

There is no plan for a joint statement this year from the G7, a sign that the Trump administration sees no need to build a shared consensus with fellow democracies if it views such a statement as contrary to its goals of new tariffs, more fossil fuel production and a Europe that is less dependent on the U.S. military.

“The Trump administration almost certainly believes that no deal is better than a bad deal,” said Caitlin Welsh, a director at the Center for Strategic and International Studies think tank who was part of Trump’s team for the G7 in Trump’s first term.

The White House has stayed decidedly mum about its goals for the G7, which originated as a 1973 finance ministers’ meeting to address the oil crisis and steadily evolved into a yearly summit that is meant to foster personal relationships among and address global problems.

The G7 even briefly expanded to the G8 with Russia as a member, only for Russia to be expelled in 2014 after annexing Crimea and taking a foothold in Ukraine that preceded its aggressive 2022 invasion of that nation.

Trump will have at least three scheduled bilateral meetings during the summit with other world leaders while in Canada, staring on Monday morning with Canadian Prime Minister Mark Carney. The U.S. president is also expected to have bilateral meetings with Mexican President Claudia Sheinbaum and Ukrainian President Volodymyr Zelenskyy, according to an administration official.

The U.S. president has imposed 25% tariffs on steel, aluminum and autos, all of which have disproportionately hit Japan. Trump is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period set by him would expire.

The United Kingdom reached a trade framework with the U.S. that included quotas to protect against some tariffs, but the 10% baseline would remain as the Trump administration is banking on tariff revenues to help cover the cost of its income tax cuts.

Canada and Mexico face separate tariffs of as much as 25% that Trump put into place under the auspices of stopping fentanyl smuggling, through some products are still protected under the 2020 U.S.-Mexico-Canada Agreement signed during Trump’s first term.

The Trump administration has insisted that its broad tariffs will produce trade agreements that box out China, though it’s unclear how antagonizing trade partners would make them want to strengthen their reliance on the U.S. Carney, the Canadian leader, has been outspoken in saying his country can no longer look to the U.S. as an enduring friend.

That might leave Trump with the awkward task of wanting to keep his tariffs in place while also trying to convince other countries that they’re better off siding with the U.S. than China.

“Trump will try to coordinate the group against China’s economic coercion,” Josh Lipsky, chair of international economics at the Atlantic Council, wrote in an analysis. “But the rest of the leaders may turn back to Trump and say that this kind of coordination, which is at the heart of why the G7 works, would be easier if he weren’t imposing tariffs on his allies.”

Acoustical Sheetmetal Co. to invest $46M in Virginia Beach expansion

Virginia Beach-based will invest $45.8 million to expand its operations, with plans to add 350 jobs, announced Friday.

Acoustical Sheetmetal is a manufacturer of steel and aluminum enclosures for the power generation industry, providing on-site power integration for large-scale data centers. It plans to build an additional 250,000-square-foot building and add significant machinery on 21.1 acres of land it purchased at the Innovation Park from the City of Virginia Beach. About 17.5 acres of the land are developable.

“This next phase of our will allow us to continue to execute our strategy as the leader in power generation integration, again doubling our capacity in a very dynamic and fast-paced environment supporting the data center industry,” ASC CEO Margaret Shaia said in a statement.

Once construction is complete, ASC will have more than 550,000 square feet of production space. The company did not immediately return requests for comment.

Youngkin says this marks the third expansion by Acoustical Sheetmetal Co. in six years, which he described as “a testament to the strength of our local workforce and the pro-business environment we’ve worked hard to create.”

Acoustical Sheetmetal announced plans in 2020 to establish its headquarters and a second facility in the city’s Innovation Park. The first expansion included a 100,000-square-foot facility and the second expansion, which was completed in 2024, added an additional 135,000 square feet.

“Three hundred and fifty new jobs mean hundreds of new opportunities for Virginia families, and I’m proud to support the continued growth of the manufacturing industry in the Commonwealth,” Youngkin said in a statement. “Great homegrown companies like ASC continue to see Virginia as the place to grow and build their future.”

The Virginia Partnership worked with Virginia Beach and the on the project and Youngkin approved a $1.75 million grant from the city with this project. The Virginia Beach government provided a $921,869 land purchase discount, and the Virginia Beach Department of Economic Development provided a local cash grant of $828,130.

Founded in 1994 in Virginia Beach, ASC offers sound-attenuated and weather-protective packaging for on-site power generation equipment. It currently has two campuses in Virginia Beach — its 5.5-acre original campus on Production Road, featuring 75,000 square feet of manufacturing space and an 11,000-square-foot storage facility, and a 23-acre campus on Hudome Way, which includes 235,000 square feet of manufacturing space and a 5-acre storage facility.

The company employs more than 500 people, with employees including certified welders, licensed electricians and machinists, as well as an engineering design team.

Israel-Iran conflict fuels oil surge, economic fears grow

SUMMARY:

 

Israel’s attack on Iran Friday has catapulted their long-running conflict into what could become a wider, more dangerous regional war and potentially drive prices higher for both businesses and households.

Oil and gold surged and the dollar rose as markets retreated, signaling a flight to investments perceived as more safe.

After years of sky-high inflation in the aftermath of the COVID-19 pandemic, Americans have become increasingly leery about the economy this year due to President ‘s sweeping tariffs, though the impact so far has been muted.

The latest escalation in the Middle East has the potential to cause widespread price increases that could set consumers back again.

Here’s a look at some of the sectors that could face an outsized impact from the escalation in the Middle East, and what that might mean for consumers.

Energy

surged Friday to their biggest gain since the onset of Russia’s war on Ukraine began more than three years ago. If or when Israel’s attack on Iran could impact gas prices, which have been in decline for nearly a year, isn’t entirely clear.

Iran is one of the world’s major producers of oil, though sanctions by Western countries have limited its sales. If a wider war erupts, it could significantly slow or stop the flow of Iran’s oil to its customers. Energy prices have been held in check this year because production has remained relatively high, and demand for it low. A widening conflict could tilt that balance.

“The loss of this export supply would wipe out the surplus that was expected in the fourth quarter of this year,” analysts for ING wrote in a note to clients.

In the past, conflicts in the Middle East have sent energy price soaring for extended periods but in recent years, because of the huge supply of oil, those spikes have been more fleeting.

Earlier this month, the countries in the OPEC+ alliance decided to increase production again, which often pushes crude prices down. They hit a four-year low in early May. That usually means cheaper gas, of which there is currently a surplus.

According to the auto club organization AAA, the average price for a gallon of gas in the U.S. on Friday was $3.13 per gallon, down from $3.46 a year ago.

Shipping

Shipping costs were already on the rise for a number of reasons. Cargo is being rerouted around the Red Sea where the U.S. began conducting air strikes on Yemen’s Houthis, the Iran-backed rebels who were attacking ships on what is a vital global trade route. And this year, companies have scrambled to import as many goods as possible before Trump’s tariffs kicked in, pushing demand, and prices to ship, higher.

The Baltic Dry Index, a key indicator of dry bulk shipping demand that tacks the movement of coal, iron ore, grains and more, is hitting eight-month highs.

The window for companies seeking to ship goods before the year’s end is coming to a close this month. A widening conflict in the Middle East would only drive prices higher as those companies jostle to get goods from overseas as geopolitical tensions in the region rise.

Shares of ocean shipping companies like Teekay and Frontline rose sharply following Israel’s attack.

Consumer goods

Higher energy prices can lead to elevated costs for a wide range of products because just about everything is made and transported using oil or natural gas.

Government data this week revealed that Trump’s tariffs have yet to cause a broader rise in inflation. Still, many companies have announced price hikes due to the tariffs. Walmart has already raised prices on some goods and said it will do so again as the back-to-school shopping season begins. J.M. Smucker, largely due to the impact of tariffs on coffee from Brazil and Vietnam, said it’s also raised prices and will do so again. Combined with the higher shipping and production costs that could result from the escalated Middle East conflict, prices will almost certainly rise further, analysts say.

“Inventory buffers may have allowed firms to put off decisions about raising prices, but that won’t be the case for much longer,” the ING analysts said. “We expect to see bigger spikes in the month-on-month inflation figures through the summer,” they added, noting that The Fed’s recent Beige Book cited widespread reports of aggressive price hikes already in the pipeline.

Federal Reserve

Federal Reserve officials meet next week to make their next interest rate decision, and the vast majority of economists still think the U.S. central bank will leave its benchmark rate where it is for the fourth straight time. The Fed has been juggling its dual mandate of supporting the labor market while keeping inflation at bay. That goal may become increasingly difficult to achieve if prices for gas, food and other essential rise due to the Israel-Iran conflict.

If prices go up, Fed officials may be inclined to raise its benchmark rate, raising borrowing costs for businesses and consumers. That could lead to businesses to cut jobs, particularly in the high-growth tech sector, and force Americans to pull back on spending, which drives more than 70% of economic activity in the U.S.

Shares of tech companies and retailers were among the biggest decliners Friday.

Travel

Perhaps contrary to conventional wisdom, one cascading effect of the heightened Middle East tension may be that the cost of traveling, even if fuel prices rise, will come down.

Airlines have been downgrading their travel forecasts as businesses and families tighten their travel budgets in anticipation of tariff-related price hikes. Several major air disasters also have made some wary of getting on a plane.

Most major U.S. airlines have said they plan to reduce their scheduled domestic flights this summer, citing an ebb in economy passengers booking leisure trips. Last month, Bank of America reported that its credit card customers were spending less on flights and lodging.

And because of the Trump tariff wars, the dollar has fallen almost 10% this year when measured against a basket of foreign currencies, making it more expensive for Americans to travel abroad due to unfavorable exchange rates.

On Friday, shares of major U.S. airlines were in sharp retreat.

Oil prices jump 7% as Israel-Iran conflict spooks markets

SUMMARY:

  • rose 7% after Israeli strike on Iran
  • fell 1.2%, Dow dropped 843 points
  • composite declined 1.3% on Friday
  • Fears grow over global oil supply disruption

 

NEW YORK (AP) — Oil prices are leaping, and stocks are falling Friday on worries that escalating violence following Israel’s attack on Iranian nuclear and military targets could damage the flow of crude around the world, along with the global economy.

The S&P 500 dropped 1.2% and was on track to wipe out its modest gains from earlier in the week. The Industrial Average was down 843 points, or 2%, as of 2:45 p.m. Eastern time, and the Nasdaq composite was 1.3% lower.

The strongest action was in the oil market, where the price of a barrel of benchmark U.S. crude jumped 7.3% to $72.98. Brent crude, the international standard, rose 7% to $74.23 for a barrel.

Iran is one of the world’s major producers of oil, though sanctions by Western countries have limited its sales. If a wider war erupts, it could slow the flow of Iran’s oil to its customers and keep the price of crude and gasoline higher for everyone worldwide.

Beyond the oil coming from Iran, analysts also pointed to the potential for disruptions in the Strait of Hormuz, a relatively narrow waterway off Iran’s coast. Much of the world’s oil moves through it on ships.

But past attacks involving Iran and Israel have seen prices for oil spike initially, only to fall later “once it became clear that the situation was not escalating and there was no impact on oil supply,” according to Richard Joswick, head of near-term oil at S&P Global Commodity Insights.

That has waiting to see what will come next. U.S. stock prices dropped to their lowest points for the day as Iran’s state-run news site said Iran launched ballistic missiles towards Israel.

For now, the price of oil has jumped, but it’s still lower than it was earlier this year. “This is an economic shock that nobody really needs, but it is one that seems more like a shock to sentiment than to the fundamentals of the economy,” said Brian Jacobsen, chief economist at Annex Wealth Management.

That in turn had U.S. stocks falling to give back some of their big recent gains that had brought them to the brink of their record.

Companies that use a lot of fuel as part of their business and need their customers feeling confident enough to travel fell to some of the sharpest losses. Cruise operator Carnival dropped 5%. United Airlines sank 4.5%, and Norwegian Cruise Line Holdings fell 5%.

They helped overshadow gains for U.S. oil producers and other companies that could benefit from increased fighting between Israel and Iran.

Exxon Mobil rose 2.1%, and ConocoPhillips gained 1.9% because the leaping price of crude portends bigger profits for them.

Contractors that make weapons and defense equipment also rallied. Lockheed Martin, Northrop Grumman and RTX all rose at least 3%.

The price of gold climbed as investors searched for safer places to park their cash. An ounce of gold added 1.5%.

Often, prices for Treasury bonds will likewise rise when investors are feeling nervous. That’s because U.S. government bonds have historically been seen as some of the safest options around. But Treasury prices fell Friday, which in turn pushed up their yields, in part because of worries that a spike in oil prices could drive higher.

Inflation has remained relatively tame recently, and it’s near the Federal Reserve’s target of 2%, but worries are high that it could be set to accelerate because of President ‘s .

That sent the yield on the 10-year Treasury up to 4.42% from 4.36% late Thursday. Higher yields can tug down on prices for stocks and other investments, while making it more expensive for U.S. companies and households to borrow money.

A report on Friday suggesting an unexpectedly large increase in sentiment among U.S. consumers also helped drive yields higher. The preliminary report from the said sentiment improved for the first time in six months after Trump put many of his tariffs on pause, while U.S. consumers’ expectations for coming inflation eased.

On Wall Street, Adobe fell 5.2% even though the company behind Photoshop reported a stronger profit for the latest quarter than Wall Street expected. Analysts called it a solid performance but said investors may have been looking for bigger increases to some of its revenue forecasts for the upcoming year.

Shares of Brazilian meat giant JBS fell 4.4% as they made their debut on the New York Stock Exchange. The company wants to increase access to its shares among global investors, despite criticism from environmental groups, U.S. lawmakers and others who noted JBS’ record of corruption, monopolistic behavior and environmental destruction.

In stock markets abroad, indexes slumped across Europe and Asia. France’s CAC 40 lost 1%, and Germany’s DAX dropped 1.1% for two of the larger losses.

Consumer sentiment rises in June after six-month slump

SUMMARY:

  • index rose 16% in June to 60.5
  • First increase after six straight months of decline
  • remains subdued, supporting optimism
  • Trade truce with China credited for improving outlook

 

WASHINGTON (AP) — Consumer sentiment increased in June for the first time in six months, the latest sign that Americans’ views of the economy have improved as inflation has stayed tame and the has reached a truce in its trade fight with China.

The preliminary reading of the ‘s closely watched consumer sentiment index, released Friday, jumped 16% from 52.2 to 60.5. The large increase followed steady drops that left the preliminary number last month at the second-lowest level in the nearly 75-year history of the survey. Consumer sentiment is still down 20% compared with December 2024.

“Consumers appear to have settled somewhat from the shock of the extremely high announced in April and the policy volatility seen in the weeks that followed,” Joanne Hsu, director of the survey, said in a written statement. “However, consumers still perceive wide-ranging downside risks to the economy.”

Americans have largely taken a darker view of the economy’s future after President unleashed a wide-ranging , imposing steep tariffs on China, the European Union, and dozens of other countries. Yet in April Trump postponed a set of sweeping tariffs on about 60 nations and last month reached a temporary truce with China, after both sides had sharply ratcheted up tariffs on each other.

The Conference Board’s consumer confidence index, released in late May, also increased after five straight declines that were linked to anxiety over tariffs.

U.S. duties remain elevated compared with historical levels, but so far they have not worsened overall inflation. Prices rose just 2.4% in May compared with a year ago, up slightly from 2.3% in April. Still, most economists expect tariffs to hit harder in the coming months.

Consumer confidence is sharply divided by political outlook, with Republicans feeling much better about the economy under Trump than . Democratic sentiment about the economy was much higher under Biden, while views were low. This month, however, sentiment did improve among supporters of both parties and independents.

Consumers’ inflation expectations — basically a measure of how worried people are about future inflation — dropped this month, which will be welcomed by the inflation-fighters at the Federal Reserve. Inflation expectations can become self-fulfilling, because if people worry price increases will get worse, they can take steps — such as demanding higher pay — that push prices even higher.

The Fed meets next week, and is expected to keep its key short-term interest rate unchanged at about 4.3%.

Virginia casinos report $85.4M in May revenue

SUMMARY:

  • Virginia earned $85.39 million in May, up $6.63M from April
  • Caesars Virginia in led with $34.06 million in revenue
  • Localities received 6% of May’s revenues in taxes

May revenues from Virginia’s three casinos totaled $85.39 million, up $6.63 million from April, according to a June 13 report from the .

Last month, casino reported about $23.027 million in adjusted gaming revenues (wagers minus winnings), of which about $18.74 million came from its 1,423 slots and about $4.28 million came from its 73 table games. (The Bristol casino’s temporary facility opened in July 2022, making it the first operating casino in Virginia. The permanent Hard Rock Bristol opened in November 2024.)

Rivers Casino , which opened as Virginia’s first permanent casino in January 2023, generated about $20 million in May from its 1419 slots and about $8.3 million from its 84 table games, for a total AGR of about $28.31 million.

The state’s newest permanent casino, the Caesars Virginia resort in Danville, reported almost $34.06 million in AGR, with about $24.76 million coming from its 1,477 slots and roughly $9.29 million coming from the casino’s 100 table games. The $800 million Caesars Virginia opened in December 2024, replacing a temporary casino that opened in May 2023.

Virginia assesses a graduated tax on a casino’s adjusted gaming revenue. For the month of May, taxes from casino AGRs totaled nearly $15.37 million.

Under Virginia law, 6% of a casino operator’s AGR goes to its host locality until the operator passes $200 million in AGR for the year, at which point the host locality’s tax rate rises to 7%. If an operator passes $400 million in AGR in the calendar year, that rises to 8%.

For May, Portsmouth received 6% of the Rivers Casino Portsmouth’s AGR, getting about $1.7 million. Danville received 6% of the Caesars Virginia casino’s adjusted gaming revenue, amounting to roughly $2.04 million. For the Bristol casino, 6% of its adjusted gaming revenue — about $1.38 million last month — goes to the Regional Improvement Commission, which the General Assembly established to distribute Bristol casino tax funds throughout Southwest Virginia.

The Problem Treatment and Support Fund receives 0.8% of total taxes — about $122,958 last month. The Family and Children’s Trust Fund, which funds family violence prevention and treatment programs, receives 0.2% of the monthly total, which was approximately $30,739 in May.

Two more casinos are on the horizon in Virginia.

Construction began on the long-awaited $750 million Norfolk casino in February. The Pamunkey Indian Tribe remains a partner, but Boyd Gaming replaced Tennessee investor Jon Yarbrough in 2024. A temporary casino is expected to be completed by the end of the year. Developers named Ron Bailey as vice president and general manager for the forthcoming casino earlier this month.

In November 2024, more than 80% of Petersburg voters said yes to the city’s casino referendum. Baltimore-based The Cordish Cos. and developer Bruce Smith Enterprise broke ground on the much-anticipated $1.4 billion casino in March.

In May, Rivers Casino and Chicago-based Rush Street Gaming announced they are planning to break ground on a $65 million hotel in Portsmouth this summer, more than two years after the casino first opened.

Hooker restructuring targets $25M savings by FY27

SUMMARY:

  • Hooker aims to cut $25M in fixed costs by fiscal 2027
  • Phase 1 involved downsizing and other cuts for $10M in cost savings
  • Phase 2 focuses on logistics, operational consolidation
  • Company facing headwinds like soft , weak housing market

-based is moving ahead with a multi-phase plan aimed at cutting $25 million in annual fixed costs by fiscal 2027, roughly 25% of its baseline, company executives revealed in an earnings call Thursday.

The plan comes as Hooker navigates uncertain economic conditions’ continued headwinds like soft consumer sentiment and a weak housing market.

Hooker Chief Financial Officer Earl Armstrong said the company is executing its strategy in two phases. The first, initiated last year, included facility downsizing, headcount reductions and other fixed cost cuts, resulting in $10 million in expected annual savings starting this fiscal year. It incurred between $4.1 million and $4.9 million in restructuring charges, including $3.6 million in severance expenses.

The second phase, underway now, involves logistics and operational consolidation. The company plans to close its Savannah warehouse by Oct. 31, and it opened a new facility in Vietnam last month to shorten lead times from six months to four to six weeks. Hooker expects $3.4 million in net savings from phase two in fiscal 2026, growing to $14 million annually by fiscal 2027.

CEO Jeremy Hoff noted that tariff concerns are disrupting order flow, especially among large-volume customers.

“Cadence changed pretty drastically for us with the ,” Hoff said. “It definitely affects what we call the mega customer, which is really the [Home Meridian International] customer, more so than the many customers we have that are very different on the Hooker Branded and domestic upholstery side of our business.”

HMI net sales fell 29% year-over-year, driven by the loss of a major customer and buying hesitancy tied to potential tariffs. Incoming orders and backlog also declined, but gross margin improved by 200 basis points, and operating losses narrowed to $2.8 million from $3.4 million.

Hooker Branded saw modest sales growth and improved gross margin. Domestic upholstery sales dipped 3.7% due to softer indoor demand but were offset by a 12.7% increase in outdoor furnishings sales from its Sunset West brand. That segment cut operating losses by more than half.

The company ended the quarter with $18 million in cash, up $11.7 million from year-end, and lowered inventory by $7 million. It paid off all borrowings on its revolving credit facility after the quarter ended, leaving $63 million in borrowing capacity.

“These actions are not only improving near-term liquidity but also positioning us to pursue strategic growth with a stronger, more efficient balance sheet,” Armstrong said.

Hooker declared its regular quarterly dividend following the quarter’s close, extending a 50-year streak of uninterrupted payments.

“We are focused on disciplined capital deployment that supports both shareholder returns and operational resilience,” Armstrong said. “As we move through the year, we remain committed to capital allocation decisions that enhance long-term value creation.”

Senate Democrats, AG Miyares duel over rejected university board appointees

SUMMARY:

  • Democratic-controlled state Senate committee rejected eight appointees to three universities’ boards by
  • Virginia AG Jason Miyares says because it was a committee, not the whole legislature, vote is invalid and appointees can serve
  • Democratic Senate Majority Leader Scott Surovell says rejected appointees cannot serve under state law, and defiant board members will face consequences

Updated June 13

Like Schrödinger’s cat, the eight failed appointees to three Virginia universities’ boards are simultaneously valid members or not, depending whom you ask.

Virginia Attorney General Jason Miyares, in a June 11 letter to the state’s public universities’ rectors, wrote that the eight people — including former Attorney General Kenneth Cuccinelli, whom Gov. Glenn Youngkin appointed to the University of Virginia’s in March — remain members “with the rights and responsibilities conferred upon a member of a board of visitors.”

State Senate Majority Leader Scott Surovell, D-Fairfax, has the opposite view. Cuccinelli and seven appointees to the George Mason University and boards are no longer active members following an 8-4 Senate Committee on Privileges and Elections vote Monday to reject their appointments, he says.

Further, Senate Clerk Susan Clarke Schaar sent a letter Tuesday to Secretary of the Commonwealth Kelly Gee advising her of the committee vote — by direction of Sen. Aaron Rouse, D-Virginia Beach, the committee’s chair — and noting that the Constitution of Virginia says, “No person appointed to any office by the Governor, whose appointment is subject to confirmation by the General Assembly … shall enter upon, or continue in, office after the General Assembly shall have refused to confirm his appointment, nor shall such person be eligible for reappointment during the recess of the General Assembly to fill the vacancy caused by such refusal to confirm.”

The party line vote this week by the Democratic-led Senate committee, which has voted to confirm thousands of other board and commission appointments by the governor, came in response to what state feel has become an overly partisan scheme by Youngkin to exercise ideological power over the state’s public universities.

Charles J. Cooper, a Florida appellate attorney who represented former U.S. Attorneys General Jeff Sessions and John Ashcroft and served as a U.S. assistant attorney general under President Ronald Reagan, was among the rejected appointees to George Mason’s board, along with Caren Merrick, who served as the state’s immediate past commerce secretary under Youngkin. William Hansen, a former U.S. deputy secretary of  under President George W. Bush, and Maureen Ohlhausen, a former Federal Trade Commission chair, were also rejected by the Senate committee.

appointees John Hartsock, deputy chief of staff for U.S. Rep. Ben Cline; Stephen Reardon, an attorney with Spotts Fain; and Jose Suarez, a Florida businessman, were also rejected, mainly because of the timing of their appointments shortly after the General Assembly had adjourned from its regular session, Surovell said in an interview Thursday with Virginia Business.

He noted that the Lexington military institute’s board, including the three new members, took a controversial vote not to renew the contract of VMI’s first Black superintendent, retired Army Maj. Gen. Cedric Wins, who was hired in late 2020 on an interim basis and then offered the permanent post in 2021.

The governor’s VMI appointments of Hartsock and Reardon were announced in late February and days later, the vote to oust Wins took place, Surovell said, calling the timing of the appointments, which didn’t allow the legislature to take a confirmation vote without calling a special session, a “deliberate political stunt” by the governor. Suarez was appointed in April, after the vote.

Surovell added that he has heard from current and former board members who said that Youngkin has “inappropriately” tried to influence boards, which have hiring and firing power of university presidents, “in ways that no governor has done before,” including calling BOV members to tell them how to vote.

The governor’s office did not respond to questions about this allegation and other matters Thursday and referred Virginia Business to the attorney general’s letter, “which refutes the claim made by General Assembly Democrats, including Sen. Surovell in his letter, that action by a single committee of one house of the General Assembly constitutes action taken by the General Assembly as a whole,” spokesperson Peter Finocchio said in an email.

On June 9, Surovell sent a letter to the the state’s rectors, some of whom were appointed by Youngkin and others by former Gov. Ralph Northam, a Democrat, affirming that the legislature has authority over confirmation of gubernatorial appointees.

“As you are aware, Virginia’s public universities operate under a framework established by the Code of Virginia and are subject to the ultimate authority and control of the General Assembly of the Commonwealth of Virginia,” Surovell wrote. “It is important to understand that Virginia is currently and for the next six months will experience divided government. This means that governance of our universities is a shared exercise between coequal branches of government.”

Miyares, however, wrote in his letter to the rectors, who lead their universities’ boards, that Surovell made a “false statement” in his letter that “appears designed to mislead you into thinking that the General Assembly as a whole has taken action, when in fact it has not. Citing no authority for his claim, the senator goes on to offer you guidance that is in nature.”

Rector Robert D. Hardie, a Northam appointee, then contacted Surovell, an attorney, seeking clarification about Cuccinelli’s status, and Surovell addressed a letter Wednesday to Hardie saying, “ is no longer eligible to serve as a member of the UVA Board of Visitors and must immediately cease all activities in that capacity.

“Contrary to [Miyares’] public comments, it is important to note that neither the Constitution of Virginia nor the Code of Virginia requires the entire legislature to vote on gubernatorial nominations,” Surovell continued in his letter to Hardie. He added that Youngkin had previously accepted rejection of other appointees, including some that were not voted on by the entire legislature, and named new appointees for confirmation.

Further, if rectors or other board members officially recognize the rejected board appointees, they “would be violating both the Constitution of Virginia and the Code of Virginia.”

In Thursday’s interview, Surovell said that there could even potentially be “criminal consequences” for board members who ignore the vote and recognize rejected nominees as full board members.

“Such conduct would constitute ‘malfeasance and incompetence’ … and would provide grounds for removal of any board member who permits such violations” by Youngkin or his successor, Surovell wrote. Only governors have the authority to remove board members, as Youngkin did earlier in the year with former U.Va. board member Bert Ellis, whom Cuccinelli was named to replace.

In addition to hearing from Hardie, Surovell said that he had heard from VMI’s board president, NewMarket Chairman and CEO Teddy Gottwald, who “said he didn’t understand why we were upset.”

On Friday, VMI provided Gottwald’s June 10 response to Surovell, in which he noted that the General Assembly rejected two earlier appointees to the board, in addition to the three this week, “with little explanation, leaving us to wonder about the reasoning. Quintin Elliott served for more than twenty years in the Virginia Air National Guard and was later named Deputy Secretary of Transportation by Governor Northam. Clifford Foster is a highly respected financial professional who has given back to VMI extensively. Both were expected to strengthen our Board Finance Committee.”

Gottwald added that he views Hartsock, Reardon and Suarez, all alumni and former service members, as “equally qualified. … I respectfully take exception to any suggestion that these five individuals somehow do not possess the judgment, character or willingness to follow good governance practices per your letter.” Also, he wrote, he is “not aware of any directive, binding or otherwise, that the Governor has given members of our BOV. I believe that any suggestion of that sort has no basis in fact.”

Specifically addressing the non-renewal of Wins’ contract, Gottwald wrote, “This tough decision has been unpopular with some, and due to the sensitive nature of this personnel matter, the BOV has not commented on it. Our decision was based on several years of performance reviews, together with an assessment of our institutional needs, and then made after thoughtful and thorough discussion. Governor Youngkin was not involved in this decision, nor am I aware of any directive or guidance from the Governor on this decision to any Board member.”

Gottwald concluded his letter to Surovell by asking him to share specifics of “any undue interference from Governor Youngkin with any of our Board members,” but does not directly address the conflicting opinions over whether the Senate committee’s board appointment vote is valid.

George Mason University’s rector, The Heritage Foundation’s Charles “Cully” Stimson, had not contacted Surovell as of earlier Thursday, but the senator said he had heard that Stimson, another Youngkin appointee, “was very defiant.”

Miyares’ office, Hardie and Stimson did not respond to requests for comment by Virginia Business Thursday, nor did Cuccinelli, although The Washington Post reported that the former state attorney general and first-term Trump official said in a statement that he looked forward to serving on U.Va.’s board “until next June if confirmed by the General Assembly, or until this coming February if not.”

Meanwhile, Youngkin is expected to make more university board of visitors appointments to take effect July 1 as former members rotate off boards.

Surovell said the General Assembly doesn’t typically sue people, but he added, “We can take into account the behavior of these boards when we return in January.”

This article has been corrected since publication; Teddy Gottwald is currently VMI’s board president, but Col. James Inman will succeed him July 1, according to VMI. Also, VMI board appointee Jose Suarez was appointed in April, after the vote to not extend retired Army Maj. Gen. Cedric Wins’ contract as superintendent.