Good morning. Robby Starbuck, the conservative activist, filed a defamation lawsuit against Meta alleging its artificial intelligence tool smeared him by falsely asserting he participated in the Jan. 6, 2021, riot at the U.S. Capitol.

• How it emerged: Starbuck says he discovered the problem last summer when he was waging an online campaign to get Harley-Davidson to change its diversity, equity and inclusion, or DEI, policies. A Harley dealer in Vermont fired back by posting on X a screenshot on Aug. 5 purportedly of an Meta AI response saying Starbuck was at the Capitol riot and that he was linked to QAnon.
   
• What he's doing: Starbuck denied the allegations that same day and responded in a social media post that “Meta will hear from my lawyers.” He says Meta AI was still making the same unproven claims about him months later and he filed a lawsuit. His lawsuit, filed in Delaware Superior Court on Tuesday, seeks more than $5 million in damages.
   
• Claims against AI: Starbuck joins a small list of plaintiffs who are trying to hold AI companies accountable for false and reputation-damaging information generated by large language models. No U.S. court has awarded damages to someone defamed by an AI chatbot.

At the WSJ CCO Council Summit in London on May 7 attendees will hear about the most significant policy changes under the Trump administration from Jonathan Kewley, who co-chairs the global tech group at law firm Clifford Chance and is a recognized expert in AI, cybersecurity and data.

They will also hear from John Smith, co-head of law firm Morrison & Foerster’s national security practice and a former director of the Office of Foreign Assets Control, the primary U.S. sanctions enforcement body.

Gilead to pay $202 million in ‘kickback’ settlement.

Gilead Sciences has agreed to pay $202 million to resolve U.S. claims it paid illegal kickbacks to doctors who prescribed expensive HIV drugs.

The drugmaker, which sells a number of drugs to treat and prevent HIV, used programs for giving talks on HIV-related topics as a way to funnel kickbacks to physicians who prescribed its drugs, the U.S. Justice Department said Tuesday. U.S. law prohibits companies from using kickbacks to induce or reward doctors for generating business that will be ultimately paid for using federal programs.

Coinbase names new compliance chief.

Cryptocurrency exchange Coinbase has hired Joe Salama from Deutsche Bank to lead its compliance functions.

Salama, most recently global head of anti-financial crimes and group anti-money-laundering officer at the German bank, will replace Melissa Strait, who is leaving Coinbase after four years “to pursue the next chapter of her career,” according to a post on LinkedIn.

Mark Carney wins Canada election, capping dramatic turnaround for Liberals.

Canada’s Liberal Party won a fourth term in office but fell short of a majority in Parliament, obliging Prime Minister Mark Carney to seek help from rival politicians to push through an economic agenda designed to contain fallout from President Trump’s trade war.

What it means. Without a majority, Carney, the former head of the Bank of Canada and the Bank of England, will face a challenge in negotiating a new economic and security deal with Trump while also maintaining support in Parliament.

• A Canadian Technocrat’s New Mission: A Radical Breakup With Trump’s U.S.

China offers olive branch to U.S. firms after Boeing delivery halt.

Beijing is willing to support normal business cooperation with American firms, China’s commerce ministry said, coming days after Chinese airlines were ordered to stop taking delivery of Boeing aircraft.

The Chinese commerce ministry on Tuesday said that U.S. tariffs had harmed China’s airlines and Boeing. It expressed hope that the U.S. government would listen to businesses and create a stable, predictable environment for trade and investment.

• China’s Export Orders Plunge, Hit by Trump’s Trade War
• China Pushed a Hard Sell on Autonomous Driving. After a Deadly Crash, It’s Pulling Back.
• In Vivid Video, Beijing Vows Not to ‘Kneel Down’ to Washington

• France accused Russian military intelligence of orchestrating nearly a decade of cyberattacks against French ministries, defense contractors and media outlets with the aim of gathering intelligence and sowing division in the country.
   
• The French economy recovered only weakly at the start of a year that promises further pressure from trade tariffs.
   
• Amazon.com was forced to play down a report that it was considering displaying the impact of tariffs during its online checkout process after President Trump called company founder Jeff Bezos and the White House said such a move would be “a hostile and political act.”
   
• To keep prices low on phone chargers, towels and blenders in the face of rising tariffs, America’s largest retailers are trying everything.
   
• A full briefcase of new U.S. data this week will show how trade tensions are starting to reshape the economy–without yet revealing the tariffs’ full impact.

• Harvard University, under fire from the Trump administration, released its own long-awaited reports on campus antisemitism and anti-Muslim bias that paint a critical picture of the school’s political and academic climate.
   
• Coca-Cola says that it can manage the effects of tariffs, but that lower sales to Hispanic consumers dented its sales in the U.S. and other markets including Mexico.
   
• Accounting and consulting giant Deloitte has agreed to lease nearly three-quarters of a planned New York City office skyscraper, one of the most prominent signs yet that the upper-end of the office market is heating up.
   
• United Parcel Service said it is cutting 20,000 operational positions this year, moving to slash expenses after breaking ways with Amazon.com, its biggest customer.

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