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Thursday, May 15, 2025

Kroger stores nationwide overcharging on items, some expired by 90 days: investigation

 Kroger stores nationwide have been overcharging shoppers on expired and discounted sale items – potentially breaking federal and state laws and sapping extra dollars from cash-strapped customers, according to a monthslong investigation.

The Cincinnati-based chain has long been accused of inaccurate price labels, fending off several class-action lawsuits filed by customers in California, Illinois, Ohio and Utah who claim they were charged full price at the register for items with sale tags.

Executives at the major grocery chain have allegedly discussed the need to remedy the issue at internal meetings – but the faulty tags have stuck around at dozens of Kroger stores, according to an investigation led by Consumer Reports, The Guardian and the Food & Environment Reporting Network.

Kroger stores have been overcharging customers on expired and discounted sale items, according to an investigation.Getty Images

“The Consumer Reports allegations boil down to misinformation, reviewing a handful of discrete issues from billions of daily transactions,” a Kroger spokesperson told The Post in a statement. 

“It in no way reflects the seriousness with which we take our transparent and affordable pricing,” they said, adding that the company regularly conducts price checks, reviewing millions of items each week.

The news outlets recruited shoppers to check prices at 26 Kroger and Kroger-owned stores, including Harris Teeter, Fred Meyer, Fry’s and Ralphs, across 14 states and the District of Columbia in March, April and May.

These undercover customers were overcharged on more than 150 items with incorrect sales labels, from Cheerios and Nescafe instant coffee to Mucinex cold medicine and dog food – and at least five items that had expired 90 days ago.

In one instance, an undercover shopper paid $4.99 for salt and pepper pistachios – $2.50 more than the advertised $2.49 sales price. 

In another, Kroger rang up a pack of flour tortillas for $4.99 at the register, though they had been advertised at a discounted $2.99.

“The scale of the price errors identified at Kroger, and the length of time that these issues have persisted, are deeply concerning,” Nina DiSalvo, policy director of the nonprofit legal organization Towards Justice, told Consumer Reports.

An undercover shopper was charged $4.99 for pistachios that had been advertised at $2.49.Consumer Reports

Kroger’s persistent price tag errors could violate both federal and state consumer protection laws, according to several lawyers.

The grocery chain is especially dominant in parts of the Midwest and the South, where it is often one of few grocers to choose from, leaving shoppers with few alternatives.

Overcharges, which can easily go unnoticed, could be hitting customers especially hard after years of food inflation and a downturn in consumer sentiment amid President Trump’s trade war.

Kroger’s persistent price tag errors could violate both federal and state laws, according to several lawyers.Getty Images

“It really makes me feel bad because some of [the customers] are on fixed incomes and they’re older. They’re not going to pay attention,” Joy Alexander, who has worked at a Kroger-owned King Soopers store in Denver for 18 years, told Consumer Reports. 

“They think that when they took it off the shelf, it was $2.50. They don’t know that they’re paying $3.75 for that one item.”

Just over the past year, Kroger customers Allison and Derek Hadfield have filed three separate complaints against the Belpre, Ohio location, where they spend about $500 on groceries each month.

“Almost every single time I go in the store, the listed price of an item is NOT what rings up at the register,” Allison Hadfield wrote in a complaint.

The couple claimed Kroger employees told them the store didn’t have enough staff to keep the tags up to date. 

Though Kroger has reported record sales and profits since the COVID-19 pandemic, it has cut back on staffing and hours, especially in the stores with egregious price tag errors, according to Consumer Reports.

Consumer Reports claimed Kroger has cut back on staffing and hours, especially in the stores with egregious price tag errors.wolterke – stock.adobe.com

Between 2019 and 2024, the average number of employees at these stores dropped by 17, with 2.7 fewer hours worked each week, according to data from the Occupational Safety and Health Administration.

Kroger said it has not reduced labor hours, and that it intentionally makes “data-driven” staffing decisions to keep stores “running smoothly while creating an enjoyable place to shop.”

Several other retail chains have found themselves in hot water over inaccurate pricing allegations over the past few years.

Walmart is facing a lawsuit from an Illinois shopper who alleged overcharges between 10% and 15% on six items. 

Grocery chains Safeway, Albertsons and Vons in October agreed to pay nearly $4 million to settle allegations they charged customers higher prices than advertised.

And earlier this year, North Carolina fined several Dollar General and Family Dollar stores thousands of dollars after its agriculture division uncovered repeated price tag errors.

https://nypost.com/2025/05/15/business/kroger-overcharging-shoppers-on-sale-items-investigation/

Can the brain be targeted to treat type 2 diabetes?

 Successfully treating type 2 diabetes may involve focusing on brain neurons, rather than simply concentrating on obesity or insulin resistance, according to a study published today in the Journal of Clinical Investigation.

For several years, researchers have known that hyperactivity of a subset of neurons located in the hypothalamus, called AgRP neurons, is common in mice with diabetes.

"These neurons are playing an outsized role in hyperglycemia and type 2 diabetes," said UW Medicine endocrinologist Dr. Michael Schwartz, corresponding author of the paper.

To determine if these neurons contribute to elevated blood sugar in diabetic mice, researchers employed a widely used viral genetics approach to make AgRP neurons express tetanus toxin, which prevents the neurons from communicating with other neurons.

Unexpectedly, this intervention normalized  for months, despite having no effect on  or food consumption.

Conventional wisdom is that diabetes, particularly type 2 diabetes, stems from a combination of genetic predisposition and lifestyle factors, including obesity, lack of physical activity and poor diet. This mix of factors leads to  or insufficient insulin production.

Until now, scientists have traditionally thought the brain doesn't play a role in type 2 diabetes, according to Schwartz.

The paper challenges this and is a "departure from the conventional wisdom of what causes diabetes," he said.

The new findings align with studies published by the same scientists showing that injection of a peptide called FGF1 directly into the brain also causes diabetes remission in mice. This effect was subsequently shown to involve sustained inhibition of AgRP neurons.

Together, the data suggest that, while these neurons are important for controlling blood sugar in diabetes, they don't play a major role in causing obesity in these mice, the researchers noted in their report.

In other words, targeting these neurons may not reverse obesity, even as it causes diabetes to go into remission, Schwartz explained.

More research is needed on how to regulate activity in these neurons, and how they become hyperactive in the first place, he said. Once these questions are answered, Schwartz said that a  might then be developed to calm them down.

This approach could represent a shift in how clinicians understand and treat this chronic disease, Schwartz said. He noted, for instance, that Ozempic and other new drugs used to treat type 2  are also able to inhibit AgRP neurons.

The extent to which this effect contributes to the antidiabetic action of these drugs is unknown. Further research might help scientists to better understand the role of AgRP neurons in how the body normally controls , and to ultimately translate these findings into human clinical trials, he added.

More information: Yang Gou et al, AgRP neuron hyperactivity drives hyperglycemia in a mouse model of type 2 diabetes, Journal of Clinical Investigation (2025). DOI: 10.1172/JCI189842


https://medicalxpress.com/news/2025-05-brain-diabetes.html

Bitcoin Depot eyes kiosk growth, mid-single-digit revenue gains in Q2, expanding internationally

 

  • Brandon Mintz, CEO, reported "remarkable first quarter with 19% year-over-year revenue growth and record net income of $12.2 million." He emphasized strong consumer demand, a 46% increase in median transaction size to $300, and total transaction volume of $163.8 million, crediting the performance to the company's kiosk optimization strategy and operating model.
  • Mintz noted that "Q1 adjusted gross profit was up 92% year-over-year and adjusted EBITDA was up over threefold to a record $20.3 million," adding that "we ended Q1 with approximately 8,483 active machines and expect to see continued growth in kiosks for the remainder of the year."
  • The company has now deployed over 100 kiosks in Australia and is evaluating entry into at least two additional countries in 2025, with Mintz stating, "Australia is quickly emerging as a global hotspot for Bitcoin adoption...we believe this represents a significant opportunity to establish a strong presence outside North America."
  • Mintz provided an update on regulatory expansion efforts, mentioning ongoing discussions to operate in New York State and highlighting the company's compliance infrastructure.
  • Leadership changes were announced: "We have also strengthened our leadership team with the appointment of David Gray as our Chief Financial Officer; and Chris Ryan as our Chief Legal Officer," Mintz said.
  • David Gray, CFO, stated, "Revenue was $164.2 million compared to $138.5 million for last year's first quarter, an increase of 19% driven by growth in deployed kiosks and higher median transaction size. Sequentially, revenue was up 20% as compared to Q4 2024."
  • Gray explained, "Adjusted gross margin in the first quarter of 2025 increased 92% to $33.1 million...margin increase was largely driven by leverage on the significant revenue outperformance and the continued pricing strength."

Outlook

  • Gray indicated, "We anticipate Q2 revenues to grow in the low to mid-single-digits both sequentially and as compared to Q2 of 2024. This growth, while modest, is against very strong comps of $164 million and $163 million for Q1 of 2025 and Q2 of 2024, respectively."
  • The company remains "committed to additional operational enhancements to drive profitable growth going forward, including improved vendor pricing, lowering professional service costs and optimizing customer markups."

Financial Results

  • Gray reported, "GAAP net income for the first quarter of 2025 increased significantly to $12.2 million compared to a net loss of $4.2 million for the first quarter of 2025. GAAP net income attributable to common shareholders increased to $4.2 million or $0.20 per share compared to a net loss of $1.5 million in last year's first quarter."
  • Adjusted EBITDA increased 315% to $20.3 million in Q1 2025, and cash and cash equivalents in cryptocurrencies rose to $43.3 million as of March 31, 2025.
  • The company acquired 83 more Bitcoin in the quarter, bringing total holdings to 94.4 BTC, valued at $7.8 million as of March 31.
  • Operating expenses declined 7% to $15.3 million, attributed to lower depreciation and cost controls post-Data transaction. Debt at quarter-end was $60 million, with a $6 million paydown on the term loan.

Q&A

  • Mike Grondahl, Northland Capital Markets: Asked about kiosk deployment goals and CapEx for '25 and '26. Mintz said no public kiosk goal announced, progress is slower on net new installations, and CapEx for 2025 would be minimal unless a large retail chain is signed.
  • Grondahl: Inquired about revenue lift if 3,200 kiosks ramp to average. Mintz could not provide an exact number but said kiosks in year two see at least 50% revenue growth versus year one.
  • Mike Colonnese, H.C. Wainwright: Asked about capital management priorities. Mintz said Bitcoin purchases will be opportunistic, debt repayment is a focus, and M&A is more likely internationally due to strategic opportunities.
  • Colonnese: Queried about Q2 revenue guidance deceleration. Mintz attributed it to seasonality and tax return timing.
  • Harold Goetsch, B. Riley Securities: Asked about steep increase in median transaction size. Scott Buchanan, COO, said it relates to transaction tier changes for KYC, moving past a $200 tier.
  • Goetsch: Requested commentary on California post-regulatory changes. Buchanan said kiosk count in California is down about 80%, with less impact on the business due to fewer kiosks there.
  • Pat McCann, NOBLE Capital Markets: Asked about gross margin drivers. Gray cited pricing strength and leveraging higher revenue. Mintz said US competition is shrinking, possibly providing more kiosk acquisition opportunities.

Sentiment Analysis

  • Analysts expressed positive sentiment, congratulating management on strong results and focusing questions on growth, capital allocation, and regulatory impacts. Some caution was noted regarding revenue growth deceleration and regulatory headwinds.
  • Management maintained a confident and slightly optimistic tone, highlighting operational strength and providing detailed explanations. Mintz and Gray addressed questions directly, occasionally noting uncertainties with phrases like "I couldn't really say" or "just a theory."
  • Compared to the previous quarter, both analysts and management exhibited increased confidence, with more forward-looking discussions on international expansion and capital deployment.

Quarter-over-Quarter Comparison

  • Q1 2025 showed stronger revenue and profitability, with GAAP net income of $12.2 million compared to $5.4 million in Q4 2024. Adjusted EBITDA and gross margin also improved significantly.
  • The company reiterated its kiosk optimization and international expansion strategies, advancing from initial deployment in Australia to over 100 kiosks installed. New leadership appointments were announced, signaling a strengthened management team.
  • Guidance language shifted from cautious reinstatement in Q4 2024 to more confident projections for Q2 2025, despite acknowledging modest sequential growth and seasonality.
  • Analyst focus evolved from regulatory challenges and relocation impacts to capital allocation, kiosk productivity, and international expansion opportunities.
  • Management's tone was more assertive about profitability, cash flow, and operational improvements; analyst tone was constructive but probing, especially on growth drivers and margin sustainability.

Risks and Concerns

  • Regulatory uncertainty remains a challenge, particularly regarding New York State entry and the broader federal and state regulatory landscape. Mintz said, "We are in ongoing discussions with regulators and remain optimistic about obtaining a license to operate in the state in 2025."
  • Seasonality affecting revenue growth was acknowledged, especially the impact of tax return season on Q1 performance.
  • Competitive landscape shifts, with many competitor kiosks exiting the US market, could present both opportunities and risks.
  • Management highlighted ongoing efforts to optimize costs and maintain flexibility in capital allocation, including limited CapEx plans and potential for accelerated debt repayment.

Final Takeaway

Bitcoin Depot delivered record first quarter results, underpinned by strong demand, margin expansion, disciplined cost control, and a growing global presence. The company remains focused on expanding its kiosk footprint, driving operational efficiencies, and pursuing international opportunities, while navigating regulatory developments and prioritizing shareholder value through prudent capital management and leadership enhancements.

Read the full Earnings Call Transcript

https://www.msn.com/en-us/money/companies/bitcoin-depot-anticipates-kiosk-growth-and-mid-single-digit-revenue-gains-in-q2-2025-while-expanding-internationally/ar-AA1ERokA

Lethal Lidar: Volvo SUV's Infrared Beam Fries Smartphone Camera

 High-powered lidar systems—commonly used in autonomous and semi-autonomous vehicles—emit infrared laser beams to map their environments. While invisible to the human eye, these beams can damage smartphone camera sensors, as one Reddit user recently discovered the hard way. 

Reddit user Jeguetelli recently shared a video on the r/Volvo subreddit showing a smartphone camera's image sensor being fried after filming the front-mounted lidar sensor on the Volvo EX90—a fully electric, seven-seat luxury SUV that serves as Volvo's flagship entry into the electric vehicle market.

"Never film the new Ex90 because you will break your cell camera.Lidar lasers burn your camera," Jeguetelli wrote. 

Auto blog The Drive pointed out, "It should be said that the risk here is inherent to lidar technology, and has nothing to do with Volvo's specific implementation on the EX90. In fact, earlier this year, the automaker even issued a warning against directing external cameras at the vehicle's lidar pod for the very reasons discussed."

Volvo's website states:

Lidar light waves can damage external cameras: Do not point a camera directly at the lidar. The lidar, being a laser based system, uses infrared light waves that may cause damage to certain camera devices. This can include smartphones or phones equipped with a camera.

"Would this damage your car's backup camera, if a LIDAR equipped car tailgates you?" one Redditor asked. 

Another person said, "Thank god for Apple Care." 

The ongoing debate in the tech world centers on LiDAR vs. cameras—a big divide in the race toward fully autonomous vehicles, especially when comparing Tesla's camera-only approach to rivals embracing LiDAR.

Elon Musk famously called LiDAR a "crutch," arguing that camera vision powered by advanced AI is sufficient for FSD.

"In my view, it's a crutch that will drive companies to a local maximum that they will find very hard to get out of." Musk said several years ago, adding, "Perhaps I am wrong, and I will look like a fool. But I am quite certain that I am not."

The Counterargument: Tesla's competitors argue that LiDAR provides critical redundancy and reliability, especially for safety-critical applications like robotaxis.

The proliferation of LiDAR sensors on vehicles should come with a public service warning: avoid pointing smartphone cameras at these devices emitting infrared laser beams—they can permanently damage image sensors.

Also, will LiDAR risk burning camera sensors on Tesla vehicles? 

https://www.zerohedge.com/technology/watch-volvo-ex90s-lidar-laser-allegedly-burns-smartphones-camera

Dem Sees Calls for Expulsion, Arrest After Allegedly Assaulting ICE Agents by NJ Detention Center

 by Debra Heine via American Greatness,

Homeland Security Secretary Kristi Noem on Tuesday said the three Democrat lawmakers who scuffled with Immigration and Customs Enforcement (ICE) agents in New Jersey last Friday committed felonies.

New Jersey Reps. Bonnie Watson Coleman, Robert Menendez and LaMonica McIver were part of a mob that protested at the Delaney Hall detention center, a privately run facility under contract with ICE that houses non-citizens awaiting immigration proceedings or deportation.

The lefty protesters were demanding that the center be shut down, the New York Post reported.

Newark Mayor Ras Baraka (D) was arrested Friday afternoon and charged with trespassing after entering the facility and refusing to leave.

An ugly scuffle ensued as the lawmakers surrounded Baraka in an apparent attempt to shield the mayor from the ICE agents making the arrest.

Don’t touch us!” McIver (in red) screamed over and over as officers tried to break through their blockade.

An online video shows the hefty McIver (in red), a member of the House Homeland Security Committee, throwing punches and shoving law enforcement officers as they tried to regain control.

Watson Coleman said the group of lawmakers had already visited the facility and come out to talk to the mayor when they were the ones allegedly assaulted by ICE agents.

“Since DHS has been lying about this, allow me to correct the record. This scuffle, during which an ICE agent physically shoved me, occurred AFTER we had entered the Delaney Hall premises,” she posted on  X, Friday.

We entered the facility, came BACK OUT to speak to the Mayor, and then ICE agents began shoving us. This is not how we entered the facility. We were escorted in by guards, because we have lawful oversight authority to be there,” she said.

”Tricia McLaughlin, the Department of Homeland Security’s assistant secretary for public affairs, said on CNN Friday that DHS has damning body-cam video of the scuffle that has not yet been released to the public.

“We actually have body camera footage of some of these members of Congress assaulting our ICE enforcement officers, including body slamming a female ICE officer,” McLaughlin said.

These members of Congress, this mayor and these protesters are not above the law,” McLaughlin noted on “Fox & Friends,” Monday.

Noem hinted that more arrests are being considered during an appearance on Fox News, Tuesday night.

“This wasn’t oversight, this was committing felonies. This was going out and attacking people who stand up for the rule of law. And it was absolutely horrible,” Noem told the host Jesse Waters, noting that the acts of violence were committed in defense of violent criminals— rapists, murderers, and members of foreign terrorist organizations victimizing American communities.

What are they trying to do? Get these people released back into the country so there can be more Laken Rileys?” she asked. “I just don’t understand what their point is. They’ve completely lost their minds.”

Noem said it was up to the Department of Justice to decide whether to press charges against the Democrat lawmakers.

Rep. Buddy Carter (R-Ga.) introduced a resolution Tuesday to strip the House members of all their committee assignments.

Rep. Marjory Taylor Greene went further Wednesday, saying McIver needs to be expelled.

Greene posted a photo on X showing McIver “couldn’t even look up as video played of her assaulting ICE officers” during a Homeland Security hearing Wednesday.

“She has zero respect for law enforcement or the rule of law, which is especially disgraceful as we honor law enforcement during Police Week,” the congresswoman added. “This isn’t just grounds for censure or removal from committees. LaMonica McIver should be EXPELLED from Congress.”

During the hearing Wednesday, Noem again argued that the Democrat lawmakers were not conducting oversight when they fought with ICE agents.

“What happened on May 9 at Delaney Hall was not oversight. It was a political stunt that put the safety of our law enforcement agents, our staff, and our detainees at risk,” she testified.  “This behavior was lawless, and it was beneath this body. Members of Congress are not above the law and cannot illegally break into detention facilities.”

Rep. Alexandria Ocasio-Cortez (D-N.Y.), meanwhile,  criticized the Trump administration over their handling of the incident, the Hill reported.

“If anyone’s breaking the law in this situation, it’s not members of Congress, it’s the Department of Homeland Security,” she said in an Instagram video posted Sunday.

It’s people like Tom Homan and Secretary Kristi Noem,” she added.

“You lay a finger on someone, on Rep. Bonnie Watson Coleman … or any of the representatives that were there, you lay a finger on them, we are going to have a problem,” Ocasio-Cortez added. “Because the people who are breaking the law are the people not abiding by it.”

Via Getty, the peaceful January 6 protester known as “the Lectern Guy,” shared his own thoughts on the fracas over the weekend.

United States Representative LaMonica McIver has still not been arrested after assaulting multiple federal officers on video,” Getty posted on X Sunday. “Within 48 hours of smiling and waving in the Capitol on J6, I was in county jail isolation under 24-hour supervision, charged with 3 crimes, 2 were lies, the other debatable,” he continued.

“They put me in an ankle monitor and told me I was I was a danger to my community. Meanwhile, this animal is still collecting a paycheck from our tax dollars,” Getty added bitterly.

Fox News reported Wednesday that House Judiciary Chairman Jim Jordan (R-Ohio) is opening an investigation into threats facing ICE facilities in the wake of the attack on Delaney Hall Detention Center.

Fox News Digital was told that Jordan is expected to schedule a hearing for next Tuesday, with former ICE and Department of Homeland Security (DHS) officials expected among the witness panel.

Republicans leaders, according to Fox, are still discussing what, if any, consequences could be in store for Reps. Watson Coleman, Menendez and  McIver.

Buffett's Berkshire Hathaway dumps Citigroup stake, trims Bank of America, Capital One

 Berkshire more than doubles its stake in Constellation Brands, makes no changes to Apple stake in first quarter

Warren Buffett's Berkshire Hathaway Inc. slashed its exposure to big-bank shares in the first quarter, liquidating its position in Citigroup Inc. and trimming positions in Bank of America Corp. and Capital One Financial Corp., according to a regulatory filing on Thursday.

Berkshire sold 14,639,502 Citigroup (C) shares, according to the 13F filing with the Securities and Exchange Commission. The filing said Berkshire sold 48,660,056 shares of Bank of America (BAC), cutting its stake by over 7%; it continued to hold more than 631.5 million shares as of March 31. Berkshire cut its stake in Capital One by 300,000 shares, or around 4%.

Berkshire's biggest buy of the quarter was Constellation Brands Inc. (STZ), acquiring 6,384,676 shares, increasing its holdings by more than 113% to a total of 12,009,000 shares.

Apple Inc. (AAPL) remained Berkshire's single largest holding at 300 million shares, making up around 25% of the company's total equity portfolio. Berkshire had previously significantly cut its Apple stake but made no moves in the first quarter, according to the filing.

Large investors are required to file 13-F forms 45 days after the end of each calendar quarter detailing long positions. They tend to be closely followed for clues to moves by major investors, though the information they provide is dated and not necessarily complete. Filers aren't required to reveal short positions and the positions that are reported may or may not be parts of larger trades.

Buffett earlier this month shocked Berkshire shareholders (BRK.A) (BRK.B), announcing he would step down as chief executive at the end of the year to hand the reins to his designated successor Greg Abel. Buffett will remain chairman of the conglomerate.

https://www.morningstar.com/news/marketwatch/20250515389/warren-buffetts-berkshire-hathaway-dumps-citigroup-stake-trims-bank-of-america-capital-one