Authored by Kimberley Hayek via The Epoch Times,

A federal appeals court ruled April 21 that the state of Texas may order every public school classroom to display the Ten Commandments, marking a victory to supporters of the law.

The U.S. Court of Appeals for the Fifth Circuit, which voted 9–8, upheld Texas Senate Bill 10, overturning a lower-court injunction that had barred the 2025 law from taking effect.

“We conclude the Texas law does not violate either the Establishment Clause or the Free Exercise Clause,” Judge Stuart Kyle Duncan wrote for the majority opinion.

Civil liberties groups for the plaintiffs, which included a coalition of 15 multi-faith Texas families, denounced the decision.

“We are extremely disappointed in today’s decision. The Court’s ruling goes against fundamental First Amendment principles and binding U.S. Supreme Court authority,” the American Civil Liberties Union, ACLU of Texas, Americans United for Separation of Church and State, and the Freedom From Religion Foundation, said in a joint statement.

“The First Amendment safeguards the separation of church and state, and the freedom of families to choose how, when and if to provide their children with religious instruction. This decision tramples those rights. We anticipate asking the Supreme Court to reverse this decision and uphold the religious-freedom rights of children and parents.”

The decision in Rabbi Nathan v. Alamo Heights Independent School District follows oral arguments made during the full 17-judge court hearing in January over both the Texas law and a parallel Louisiana mandate. The court permitted Louisiana’s law to proceed in February.

The Texas Legislature passed S.B. 10 in 2025, and Gov. Greg Abbott signed the measure into law that same year. It was set to take effect on Sept. 1, 2025, requiring every classroom to post a framed or mounted English translation of the Ten Commandments measuring at least 16 by 20 inches so as to be read from anywhere in the room. The displays had to be paid for by donations, not school budgets.

After S.B. 10 passed, 16 families, represented by a coalition that included the ACLU of Texas, filed a lawsuit against 11 school districts. U.S. District Judge Fred Biery of San Antonio issued a preliminary injunction Aug. 20, 2025, ruling the law was in violation of the First Amendment’s Establishment Clause. Texas Attorney General Ken Paxton appealed that ruling to the Fifth Circuit on Aug. 21, 2025.

Paxton issued a legal advisory warning schools to obey the new law, and went on to sue three districts, claiming they had not followed the law.

A second district judge, U.S. District Judge Orlando L. Garcia, granted an additional preliminary injunction Nov. 18, 2025, calling on several school districts to take down the displays and banned them from posting new ones.

Garcia had determined S.B. 10 “runs afoul of the Establishment Clause’s prohibition on government endorsement of religion.”

A hearing before the U.S. Supreme Court is now likely.

In a terse, one-paragraph statement released this afternoon, the Pentagon announced the immediate departure of Secretary of the Navy John C. Phelan, effective immediately.

Navy Secretary John Phelan speaks at President Donald Trump’s Mar-a-Lago club on Dec. 22, 2025, in Palm Beach, Florida. (Alex Brandon/AP)

Undersecretary of the Navy Hung Cao has been elevated to Acting Secretary of the Navy. The announcement, issued by Chief Pentagon Spokesman Sean Parnell (Assistant to the Secretary of War for Public Affairs), offered no explanation for the move and simply thanked Phelan for his service “on behalf of Secretary of War Pete Hegseth and the Deputy.”

STATEMENT:

Secretary of the Navy John C. Phelan is departing the administration, effective immediately.

On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy.

We wish…

— Sean Parnell (@SeanParnellASW) April 22, 2026

The timing of the firing could hardly be more dramatic. The United States remains engaged in active military operations against Iran following the launch of Operation Epic Fury on February 28 – a joint U.S.-Israel campaign targeting Iranian missile stockpiles, naval assets, and defense infrastructure. Although a ceasefire took effect around April 8, tensions remain extremely high. The U.S. Navy is currently enforcing a naval blockade of Iranian ports in and near the Strait of Hormuz, announced in mid-April after diplomatic talks collapsed. Recent incidents have included the seizure of Iranian-flagged vessels attempting to run the blockade, Iranian attacks on commercial shipping, and ongoing enforcement actions that continue to roil global oil markets and international shipping lanes.

Phelan, a Palm Beach-based private equity investor, art collector, and major Trump donor who had poured millions into supporting the president, had no prior military or Navy experience when he was nominated in late 2024. Despite criticism over his lack of relevant background and potential conflicts of interest stemming from investments in defense contractors such as Dell and Palantir, he was confirmed by the Senate. During his roughly thirteen-month tenure (March 2025–April 22, 2026), Phelan focused heavily on bureaucratic efficiency: he axed Biden-era climate and DEI contracts and grants, reportedly saving approximately $300 million. He also pushed aggressive initiatives to accelerate shipbuilding, increase lethality across the fleet, and deepen partnerships with private-sector technology firms like Palantir.

Just yesterday, Phelan had delivered remarks at the Navy’s annual conference. In February, reports surfaced that he had flown aboard Jeffrey Epstein’s plane in 2006—well before Epstein’s first arrest. Phelan maintained that he was invited by someone else, had no further contact with Epstein, and addressed the matter publicly at the time.

Stepping into the role is Hung Cao, a Navy Captain with more than 25 years of service.

A Naval Academy graduate and decorated combat veteran, Cao’s record includes extensive experience in explosive ordnance disposal (EOD), diving, special operations, and surface warfare. He fled Vietnam as a child refugee from communism, later balancing Navy budgets at the Pentagon and deploying multiple times. Cao ran for U.S. Senate in Virginia with President Trump’s endorsement and was confirmed as Under Secretary of the Navy in October 2025. Supporters have hailed him as a “badass” warrior with genuine operational credibility—the exact opposite profile of the donor-turned-political-appointee he is replacing.

Multiple outlets are already describing Phelan’s removal as a firing orchestrated by Secretary of War Pete Hegseth. The move fits a broader pattern of rapid turnover at the top of the defense establishment under the current administration, driven by demands for loyalty and warfighting readiness. Earlier this year, the Army’s top general was also removed.

Meanwhile, Democrats are pouncing. Sen. Lisa Blunt Rochester (D-DE), framed the sudden change as evidence that things are not going well inside the administration. 

When they fire the Chief of Army and the Secretary of the Navy during a war, they know it’s going badly.

— Senator Lisa Blunt Rochester (@SenLBR) April 22, 2026

As of this writing, no public explanation has emerged from the Pentagon or the White House. 

The Navy’s operational chain of command – Chief of Naval Operations, fleet commanders, and forward-deployed forces – remains unchanged and fully in control. Still, the abrupt leadership transition at the top of the Department of the Navy (now operating under the rebranded Department of War) during active combat operations is historic in its speed and opacity.

After more than a month of conflict, a fragile ceasefire has allowed people in Tehran to begin assessing the scale of destruction, according to a new Bloomberg report.

The city, home to around nine million people, now bears widespread signs of damage, from shattered buildings to entire blocks reduced to rubble.

Although the truce has been extended for now, talks between the US and Iran have stalled, with major disagreements still unresolved around nuclear activity, regional control, and military influence.

The Bloomberg piece notes that the toll has been severe. At least 3,300 people have been killed across Iran, including civilians, and the physical damage is extensive. Because of restrictions on imagery and reporting, the full picture is still unclear, but satellite-based analysis suggests more than 7,600 buildings nationwide have been damaged or destroyed.

In Tehran alone, roughly 2,800 structures were hit. These include not just military or industrial sites, but also homes, businesses, and public facilities, reflecting how tightly intertwined different parts of the city are.

Experts note that even when strikes are intended to be precise, the reality in a dense urban environment is far messier. In Tehran, residential neighborhoods, commercial areas, and government facilities are often located side by side, making it difficult to isolate targets. As a result, the impact of attacks spreads beyond their intended focus, affecting civilian life in ways that are hard to contain.

The war has also deepened Iran’s existing economic and social pressures. Even before the conflict, the country was dealing with high inflation, environmental strain, and ongoing sanctions. Now, reconstruction costs are estimated at roughly $270 billion—close to the size of Iran’s entire economy—and inflation could climb above 70%.

Many businesses have shut down or are operating at reduced capacity, housing damage is widespread, and unemployment is expected to rise, increasing the risk of broader poverty.

Outside the capital, strikes have hit key industrial and energy hubs, disrupting supply chains and production. Damage to major steel plants and petrochemical facilities is already affecting other industries, from manufacturing to food packaging. These knock-on effects are likely to compound the economic strain in the months ahead.

Even if the ceasefire holds, rebuilding will take years, and the path forward remains uncertain as the country grapples with both physical destruction and deep structural challenges.

The uncertainty around what comes next is weighing heavily on residents and policymakers alike. While Iranian officials have floated ideas such as seeking reparations or leveraging control of key trade routes like the Strait of Hormuz to help fund reconstruction, any meaningful recovery will depend on political stability and the easing of international tensions.

Without that, access to capital, materials, and foreign investment will remain constrained, complicating efforts to rebuild critical infrastructure and restore economic activity.

There is also a broader question about how reconstruction will unfold. In past conflicts, rebuilding has sometimes helped drive recovery, but it can also deepen existing imbalances depending on how resources are allocated. As one expert put it, “damage does not only affect the structures that are hit, it also ripples out,” underscoring how the effects extend beyond physical destruction into the social and economic fabric of the city.

In Tehran, where housing, commerce, and public services are tightly interconnected, the challenge will be not just repairing what was lost, but restoring stability in a system already under strain.

Authored by Steve Watson via Modernity.news,

President Trump’s executive order to slash red tape and accelerate psychedelic therapies for America’s veterans is drawing praise from an unlikely source: Jon Stewart.

In a segment on his show, the longtime Trump critic paused his usual routine to acknowledge the move, calling it a genuine win for those who served. 

The order, signed just days earlier in the Oval Office with Joe Rogan present, directs the FDA to fast-track reviews of promising treatments like ibogaine for PTSD, traumatic brain injury, depression, and addiction.

Jon Stewart gives Trump rare credit for doing veterans “a solid” by fast-tracking ibogaine and other psychedelic treatments for PTSD.

“Ladies and gentlemen… I want to give credit where credit is due. We don’t obviously often do this. The president did a solid.”

“Over the… pic.twitter.com/j5SUpRmVuG

— The Vigilant Fox 🦊 (@VigilantFox) April 21, 2026

“Ladies and gentlemen… I want to give credit where credit is due. We don’t obviously often do this. The president did a solid,” Stewart said.

He continued: “Over the weekend, President Trump signed an executive order… fast-tracking the FDA process for novel psychedelic drug treatments for veterans suffering from all forms of PTSD and other psychiatric conditions, including addiction.”

Stewart even played footage from the signing ceremony, making fun of Trump’s distinctive pronunciation of “ibogaine” before catching himself. “I’m sorry. I’m falling into old habits. It’s good. You did a good thing. I’m nitpicking. I apologize,” he added. 

“A lot of the people are going to get the help they need,” Stewart concluded.

This marks a rare moment of cross-aisle recognition for a Trump policy that puts veterans’ lives ahead of decades-old bureaucratic barriers dating back to the 1970 Controlled Substances Act.

Earlier this month, Trump signed the directive titled “Accelerating Medical Treatments for Serious Mental Illness” in the Oval Office on April 18, flanked by Rogan, RFK Jr., Dr. Mehmet Oz, and Navy SEAL Marcus Luttrell.

Rogan, a longtime advocate for exploring these treatments after hearing from veterans and researchers, played a key role in bringing the issue to Trump’s attention. 

Rogan revealed the conversation that sparked swift action. After texting the president details on ibogaine’s potential for PTSD and opioid addiction, Trump replied almost immediately: “Sounds great. Do you want FDA approval? Let’s do it.”

At UFC 327 in Miami, Trump personally confirmed the move to Rogan. “It’s done. We’re gonna take care of this. This is a good thing. It’s a good thing for the soldiers, good thing for everybody,” Rogan recounted.

The order expedites FDA reviews, establishes safe-use protocols, opens Right to Try pathways, boosts data sharing with the VA, and funds expanded studies—all focused on substances showing strong early results for treatment-resistant conditions.

Trump framed the urgency clearly during the signing: “Since 9/11, we’ve lost over 21x more veteran lives to suicide than on the battlefield… and today, we’re bringing them new hope.” He added that the policy would “ensure that people suffering from debilitating symptoms might finally have a chance to reclaim their lives and lead a happier life. They’ve been through so much.”

Rogan echoed the significance at the event: “For 56 years we’ve lived under those terrible conditions. We’re free of that now. Thanks to all these people… and thanks to President Trump.”

Ibogaine, in particular, has drawn attention from veterans’ groups and researchers. Preliminary data, including from Stanford studies on special operations vets, points to dramatic reductions in PTSD symptoms and opioid dependency after treatment—results that have driven desperate Americans to seek care abroad when blocked at home.

Stewart’s segment highlighted exactly that point: veterans who have exhausted conventional options now have a faster path to potentially life-changing therapies.

The timing couldn’t be more critical. Veterans continue to face sky-high suicide rates and addiction crises that standard treatments have failed to stem. By prioritizing evidence over ideology and results over inertia, the Trump administration is delivering where previous efforts stalled.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

For years, and especially after the local stock bubble burst in spectacular fashion a little over a decade ago, China’s “National Team” – a polite euphemism for the country’s Plunge Protection Team – could be relied upon to step in and provide a lending hand – or rather buying hand – to stabilize stocks in the nick of time. Well, it may be time to rename it to the Surge Protection Team

According to Bloomberg, China’s “national team” has stepped back from its dominant role in the country’s biggest stock ETFs, pointing to efforts to rein in an overheated rally earlier this year.

Central Huijin Investment Ltd – a core unit of China’s sovereign wealth fund that traditionally led a group of state-backed investors used to stabilize markets – cut its ownership in several key exchange‑traded funds to below the 20% disclosure threshold, according to first‑quarter filings. Its current stake is unclear and won’t be reported until sometime in the summer. 

The disclosures, according to Bloomberg, offer the clearest confirmation yet that the national team cut a substantial portion of its ETF holdings in January, as turnover hit a record and the rally turned increasingly speculative, particularly in parts of the technology sector. They also indicate Beijing is no longer just propping up the market, but is willing to drain speculative excess — a break from past rescue playbooks.

Central Huijin and its asset management arm may have reduced their holdings by at least half in flagship products such as the 200 billion yuan ($29.3 billion) Huatai-PineBridge CSI 300 ETF. The two entities held 42.6% and 40% respectively as of the end of last year.

Even smaller funds such as the HuaAn SSE 180 ETF, previously 92% owned by the national team, reported no single shareholder above the 20% threshold, indicating the stakes were cut across the board. 

Quarterly ETF filings only require disclosure of investors with holdings of 20% or more, a threshold Central Huijin had consistently met until local stocks erupted higher in Q1.

While ownership levels can fluctuate as others trade, the sharp decline in total ETF units outstanding during the period suggests the market’s dominant buyer until recently played a decisive role in the outflows.

Remarkably, some of the National Team sales might have locked in gains of around 50%, based on the rise of the CSI 300 Index from early‑2024 lows, when the national team began aggressively buying ETFs to stem a market meltdown, through January this year, when the selling likely took place. The exact returns would depend on the specific ETFs and the timing of those purchases.

The scale of the stake reductions may become clearer with first-half filings due in the third quarter, when the identities and holdings of the top 10 investors are revealed.

Morgan Stanley estimates the national team sold about $80 billion of positions in January and February. Analysts including Laura Wang expect the money to be used for investing in longer-term, more “strategic and thematic” ETFs.

“The fact that they have relinquished this dominant position in ETFs implies that they have much more potential to create upside in the market going forward, sitting on cash, while their power to create downside is now diminished,” said Cheng Hao, fund manager at Zhejiang Feiluo Assets Management.

And now that the National Team is mostly in cash, local stocks can drop again and the government will be there to prop them up again. Rinse. Repeat. 

For years, and especially after the local stock bubble burst in spectacular fashion a little over a decade ago, China’s “National Team” – a polite euphemism for the country’s Plunge Protection Team – could be relied upon to step in and provide a lending hand – or rather buying hand – to stabilize stocks in the nick of time. Well, it may be time to rename it to the Surge Protection Team

According to Bloomberg, China’s “national team” has stepped back from its dominant role in the country’s biggest stock ETFs, pointing to efforts to rein in an overheated rally earlier this year.

Central Huijin Investment Ltd – a core unit of China’s sovereign wealth fund that traditionally led a group of state-backed investors used to stabilize markets – cut its ownership in several key exchange‑traded funds to below the 20% disclosure threshold, according to first‑quarter filings. Its current stake is unclear and won’t be reported until sometime in the summer. 

The disclosures, according to Bloomberg, offer the clearest confirmation yet that the national team cut a substantial portion of its ETF holdings in January, as turnover hit a record and the rally turned increasingly speculative, particularly in parts of the technology sector. They also indicate Beijing is no longer just propping up the market, but is willing to drain speculative excess — a break from past rescue playbooks.

Central Huijin and its asset management arm may have reduced their holdings by at least half in flagship products such as the 200 billion yuan ($29.3 billion) Huatai-PineBridge CSI 300 ETF. The two entities held 42.6% and 40% respectively as of the end of last year.

Even smaller funds such as the HuaAn SSE 180 ETF, previously 92% owned by the national team, reported no single shareholder above the 20% threshold, indicating the stakes were cut across the board. 

Quarterly ETF filings only require disclosure of investors with holdings of 20% or more, a threshold Central Huijin had consistently met until local stocks erupted higher in Q1.

While ownership levels can fluctuate as others trade, the sharp decline in total ETF units outstanding during the period suggests the market’s dominant buyer until recently played a decisive role in the outflows.

Remarkably, some of the National Team sales might have locked in gains of around 50%, based on the rise of the CSI 300 Index from early‑2024 lows, when the national team began aggressively buying ETFs to stem a market meltdown, through January this year, when the selling likely took place. The exact returns would depend on the specific ETFs and the timing of those purchases.

The scale of the stake reductions may become clearer with first-half filings due in the third quarter, when the identities and holdings of the top 10 investors are revealed.

Morgan Stanley estimates the national team sold about $80 billion of positions in January and February. Analysts including Laura Wang expect the money to be used for investing in longer-term, more “strategic and thematic” ETFs.

“The fact that they have relinquished this dominant position in ETFs implies that they have much more potential to create upside in the market going forward, sitting on cash, while their power to create downside is now diminished,” said Cheng Hao, fund manager at Zhejiang Feiluo Assets Management.

And now that the National Team is mostly in cash, local stocks can drop again and the government will be there to prop them up again. Rinse. Repeat. 

Authored by Aldgra Fredly via The Epoch Times,

Voting rights groups filed a lawsuit on April 21 seeking to block the Department of Justice (DOJ) from collecting, compiling, and analyzing state voter registration lists.

As of April 1, the DOJ has sued 30 states, including Washington, for failing to turn over voter rolls. The department has said the U.S. attorney general has congressional authority under the Civil Rights Act of 1960 to seek election records from states to check for improper voter registrations.

The groups filed a complaint on April 21, accusing the DOJ of seeking to use the sensitive data to build what they described as a “sprawling new voter surveillance and purging apparatus” without congressional authorization.

The complaint alleges that the department attempted to usurp states’ authority to oversee election administration and impose its own “secretive ’verification procedures’” to identify ineligible voters.

“Never before has a federal agency centralized this volume of Americans’ voting data in a single system of records,” it stated.

“And in doing so, DOJ has flouted statutory safeguards designed to ensure transparency and public participation in the federal government’s collection of Americans’ personal information.”

The lawsuit was filed in the U.S. District Court for the District of Columbia by advocacy group Common Cause and four individual members of Citizens for Responsibility and Ethics in Washington.

The data requested by the DOJ includes voters’ Social Security numbers, driver’s license numbers, dates of birth, home addresses, political party affiliations, and voter participation history, according to the filing.

The groups are seeking a court order requiring the DOJ to delete any voter rolls it has obtained from states and to bar the department from compiling or disclosing voter data.

Harmeet K. Dhillon, assistant attorney general of the DOJ’s Civil Rights Division, said on April 1 that the department has a duty to ensure state compliance with election laws.

Assistant Attorney General for Civil Rights Harmeet Dhillon speaks during a news conference at the Justice Department in Washington on Sept. 29, 2025. Andrew Harnik/Getty Images

“The Justice Department will continue to fulfill its oversight role dutifully, neutrally, and transparently wherever Americans vote in federal elections,” Dhillon said in a statement

“Many state election officials, however, are choosing to fight us in court rather than show their work. We will continue to verify that all States are carrying out critical election integrity legal duties.”

Dhillon added that the Civil Rights Act allows the attorney general to “demand the production, inspection, and analysis of statewide voter registration lists that can be cross-checked effectively.”

In an April 21 statement, Common Cause CEO Virginia Kase Solomon said the DOJ’s efforts to collect voter rolls amount to “a blatant, partisan power grab.”

“By attempting to interrogate and exploit voter data for political purposes, President Trump’s DOJ isn’t just threatening the privacy of every American—they are building a system designed to imprison the ballot box and silence millions of eligible voters,” Solomon said.

The Epoch Times has reached out to the DOJ for comment, but did not receive a response by publication time.

Authored by Aldgra Fredly via The Epoch Times,

Voting rights groups filed a lawsuit on April 21 seeking to block the Department of Justice (DOJ) from collecting, compiling, and analyzing state voter registration lists.

As of April 1, the DOJ has sued 30 states, including Washington, for failing to turn over voter rolls. The department has said the U.S. attorney general has congressional authority under the Civil Rights Act of 1960 to seek election records from states to check for improper voter registrations.

The groups filed a complaint on April 21, accusing the DOJ of seeking to use the sensitive data to build what they described as a “sprawling new voter surveillance and purging apparatus” without congressional authorization.

The complaint alleges that the department attempted to usurp states’ authority to oversee election administration and impose its own “secretive ’verification procedures’” to identify ineligible voters.

“Never before has a federal agency centralized this volume of Americans’ voting data in a single system of records,” it stated.

“And in doing so, DOJ has flouted statutory safeguards designed to ensure transparency and public participation in the federal government’s collection of Americans’ personal information.”

The lawsuit was filed in the U.S. District Court for the District of Columbia by advocacy group Common Cause and four individual members of Citizens for Responsibility and Ethics in Washington.

The data requested by the DOJ includes voters’ Social Security numbers, driver’s license numbers, dates of birth, home addresses, political party affiliations, and voter participation history, according to the filing.

The groups are seeking a court order requiring the DOJ to delete any voter rolls it has obtained from states and to bar the department from compiling or disclosing voter data.

Harmeet K. Dhillon, assistant attorney general of the DOJ’s Civil Rights Division, said on April 1 that the department has a duty to ensure state compliance with election laws.

Assistant Attorney General for Civil Rights Harmeet Dhillon speaks during a news conference at the Justice Department in Washington on Sept. 29, 2025. Andrew Harnik/Getty Images

“The Justice Department will continue to fulfill its oversight role dutifully, neutrally, and transparently wherever Americans vote in federal elections,” Dhillon said in a statement

“Many state election officials, however, are choosing to fight us in court rather than show their work. We will continue to verify that all States are carrying out critical election integrity legal duties.”

Dhillon added that the Civil Rights Act allows the attorney general to “demand the production, inspection, and analysis of statewide voter registration lists that can be cross-checked effectively.”

In an April 21 statement, Common Cause CEO Virginia Kase Solomon said the DOJ’s efforts to collect voter rolls amount to “a blatant, partisan power grab.”

“By attempting to interrogate and exploit voter data for political purposes, President Trump’s DOJ isn’t just threatening the privacy of every American—they are building a system designed to imprison the ballot box and silence millions of eligible voters,” Solomon said.

The Epoch Times has reached out to the DOJ for comment, but did not receive a response by publication time.

Not a great night for SaaS…

Given the eight straight days of gains for Software stocks, one could argue that the death of code-base companies was greatly exaggerated (cough -dead-cat bounce – cough), but not every boat is being lifted by this massive short-squeeze rebound

JPMorgan Trader Brian Heavey said earlier that it “seems we are moving from ‘SAAS is dead’ to ‘maybe they can co-exist'”, but it appears one software firm is indeed ‘no more’.

In July 2021, Thoma Bravo took customer-experience (CX) software leader Medallia private in a $6.4 billion all-cash leveraged buyout.

Thoma Bravo and its co-investors contributed roughly $5 billion of equity, while Blackstone and other private-credit lenders provided $1.8 billion of debt.

The deal reflected the era’s sky-high software valuations and Thoma Bravo’s aggressive playbook of buying mature SaaS platforms with heavy leverage.

But…

By 2026, the investment had become one of private equity’s most visible busts.

Medallia’s growth stalled in a crowded CX market where survey-based platforms faced commoditization and slower enterprise spending.

PE Insights reported two weeks ago that debt servicing costs ballooned to nearly $300 million (carrying around $3 billion in total debt).

Annual earnings hovered around just $200 million – insufficient to cover interest – leaving the company struggling to deleverage.

Around a month ago, Barron’s reported that lenders were under serious pressure as Blackstone, the lead creditor, repeatedly marked down its large loan position: from par to the high 80s in mid-2025, then to roughly 70 cents on the dollar by February 2026, with further declines reported into the 60s.

Other lenders including Apollo and KKR followed suit.

All of which brings us to today…

Reuters reports that, according to two people familiar with the matter, Thoma ​Bravo is nearing an agreement to hand over software ‌firm Medallia to its lenders, wrapping up months of restructuring negotiations.

The move will wipe out $5.1 billion ​in equity for Thoma Bravo and its co-investors.

Medallia provides software that collects and analyzes customer and employee feedback for companies, and has like other software/SaaS companies, seen its valuation ​hit in recent months over concerns that its services will eventually ‌be ⁠supplanted by artificial intelligence.

Will this prompt markdowns across other SaaS firms in PE books? We suspect it might force some hands to admit the painful truth.

With a literal tsunami of supply on its way this year – most notably Anthropic, OpenAI, and SpaceX all pushing to IPO in 2026 at massive valuations – some investors may see parallels to the classic 2021-vintage risks exposed by Medallia today: overpayment at peak multiples, excessive leverage, and sector headwinds that private ownership could not fix.

For Thoma Bravo and other large-scale investors, it stands as a cautionary tale of how quickly high-priced software bets can sour when growth assumptions prove overly optimistic.

Not a great night for SaaS…

Given the eight straight days of gains for Software stocks, one could argue that the death of code-base companies was greatly exaggerated (cough -dead-cat bounce – cough), but not every boat is being lifted by this massive short-squeeze rebound

JPMorgan Trader Brian Heavey said earlier that it “seems we are moving from ‘SAAS is dead’ to ‘maybe they can co-exist'”, but it appears one software firm is indeed ‘no more’.

In July 2021, Thoma Bravo took customer-experience (CX) software leader Medallia private in a $6.4 billion all-cash leveraged buyout.

Thoma Bravo and its co-investors contributed roughly $5 billion of equity, while Blackstone and other private-credit lenders provided $1.8 billion of debt.

The deal reflected the era’s sky-high software valuations and Thoma Bravo’s aggressive playbook of buying mature SaaS platforms with heavy leverage.

But…

By 2026, the investment had become one of private equity’s most visible busts.

Medallia’s growth stalled in a crowded CX market where survey-based platforms faced commoditization and slower enterprise spending.

PE Insights reported two weeks ago that debt servicing costs ballooned to nearly $300 million (carrying around $3 billion in total debt).

Annual earnings hovered around just $200 million – insufficient to cover interest – leaving the company struggling to deleverage.

Around a month ago, Barron’s reported that lenders were under serious pressure as Blackstone, the lead creditor, repeatedly marked down its large loan position: from par to the high 80s in mid-2025, then to roughly 70 cents on the dollar by February 2026, with further declines reported into the 60s.

Other lenders including Apollo and KKR followed suit.

All of which brings us to today…

Reuters reports that, according to two people familiar with the matter, Thoma ​Bravo is nearing an agreement to hand over software ‌firm Medallia to its lenders, wrapping up months of restructuring negotiations.

The move will wipe out $5.1 billion ​in equity for Thoma Bravo and its co-investors.

Medallia provides software that collects and analyzes customer and employee feedback for companies, and has like other software/SaaS companies, seen its valuation ​hit in recent months over concerns that its services will eventually ‌be ⁠supplanted by artificial intelligence.

Will this prompt markdowns across other SaaS firms in PE books? We suspect it might force some hands to admit the painful truth.

With a literal tsunami of supply on its way this year – most notably Anthropic, OpenAI, and SpaceX all pushing to IPO in 2026 at massive valuations – some investors may see parallels to the classic 2021-vintage risks exposed by Medallia today: overpayment at peak multiples, excessive leverage, and sector headwinds that private ownership could not fix.

For Thoma Bravo and other large-scale investors, it stands as a cautionary tale of how quickly high-priced software bets can sour when growth assumptions prove overly optimistic.