Good morning. A lawsuit Exxon Mobil brought to stop an investor from making climate-related proposals was dismissed, closing what some had seen as a potential legal avenue for companies to take on shareholder activism.

• Findings: After investment firm Arjuna Capital promised to never again hit Exxon with a greenhouse gas-related resolution, the court couldn’t weigh in further, U.S. District Judge Mark Pittman said in a decision released after a hearing Monday in Fort Worth, Texas. Courts can’t weigh in on a legal question without a live controversy in play, Pittman said, dismissing the case as moot.
   
• Impact of dismissal: Pittman’s decision ends the lawsuit, brought by Exxon in January, without a ruling on the law on shareholder proposals, which in recent years have steadily risen in number. Many come from investors with small stakes who want to push companies on hot-button cultural and environmental issues.
   
• What were Exxon's goals? Exxon wanted a court ruling saying it could exclude a climate-related proposal from Arjuna, a sustainability-focused firm, from its shareholder proxy statement. Had Exxon won the suit, many corporations might have had a freer hand to do the same, an outcome favored by some corporate interests that argue companies shouldn’t be forced to expend time and risk reputational damage fielding proposals on far-ranging issues.

Also: Some Corporations Seek to Silence ‘Trojan Horse’ Activists

Amazon fined by California for failure to disclose worker quotas.

A California agency has cited and fined Amazon.com for failing to comply with a state law requiring companies to disclose workplace productivity measures, an issue the e-commerce giant has been scrutinized for in recent years.

The California Labor Commissioner’s Office on Tuesday said it has fined two Amazon warehouse facilities nearly $6 million for not complying with a new labor law requiring them to disclose the quotas they apply to workers. This is the first time the 2022 law is being applied, the Commissioner’s Office said. The law was largely created to address concerns about Amazon’s workplace practices and treatment of its hourly employees.

• Chinese authorities dismissed speculation they are cracking down on tax evasion in response to market concern that local governments might be looking to punish companies for decades-old tax misconduct amid mounting fiscal stress.
   
• Stellantis has issued a safety recall for more than one million vehicles in the U.S. with rear-view-camera issues that could increase the risk of a crash.
   
• Law firm Kirkland & Ellis brought multibillion-dollar cases to David R. Jones’s court, aided by a local attorney who lived with the judge. “Why did no one look into it?”

Instagram recommends sexual videos to accounts for 13-year-olds, tests show.

Instagram regularly recommends sexual videos to accounts for teenagers that appear interested in racy content, and does so within minutes of when they first log in, according to tests by The Wall Street Journal and an academic researcher.

The tests, run over seven months ending in June, show that the social-media service has continued pushing adult-oriented content to minors after parent Meta Platforms said in January that it was giving teens a more age-appropriate experience by restricting what it calls sensitive content including sexually suggestive material.

Companies are watering down their diversity recruiting programs.

White-collar companies that once championed programs to recruit diverse employees are now tiptoeing away from them.

PricewaterhouseCoopers and JPMorgan Chase are among those that recently removed or altered descriptions of their programs for underrepresented students. The shift came after an “anti-woke” movement took aim at U.S. companies and a Supreme Court decision overturned affirmative action in college admissions.

• A rift between Israeli Prime Minister Benjamin Netanyahu and the country’s military leadership is spilling increasingly into the open after the armed forces’ top spokesman said Netanyahu’s aim of destroying Hamas in Gaza is unachievable.
   
• A speech by China’s central bank chief signals that it is looking to update its monetary tool kit with potential changes that economists say herald a major policy revamp, bringing it closer to practices adopted by its western peers.
   
• Summer is off to a sizzling start, which means higher electricity bills are on their way. The Energy Information Administration expects the U.S. average monthly residential power bill to rise to $173 in June, July and August, up 3% from last summer.
   
• Millions of people were under flood warnings as a large tropical storm battered the Texas Gulf Coast and brought heavy rain to parts of Mexico.

U.S. Secret Service, CISA host cybersecurity training for critical-infrastructure directors.

The U.S. government is pushing board directors at critical-infrastructure companies to improve cybersecurity oversight, reports WSJ Pro Cybersecurity, amid intense espionage and hacking campaigns from China and other adversaries. 

On Tuesday, the U.S. Secret Service, the Cybersecurity and Infrastructure Security Agency, the National Association of Corporate Directors, credit card giant Mastercard and venture-capital firm NightDragon delivered a one-day course to 16 such directors.

The attending directors, all of whom serve in leadership roles such as chairing audit committees on the boards of critical-infrastructure companies, sat for instruction at the Secret Service’s Laurel, Md.-based training facility. The course isn’t a primer on cybersecurity basics, but practical education on current threats and oversight..

• Apple’s presentation on artificial intelligence this month offered examples of how American iPhone users could soon enjoy AI tools such as a custom emoji generator. No one mentioned China, the second-largest market for iPhones.
   
• Silicon Valley tech billionaires are backing a group that wants to build a new kind of suburban utopia featuring affordable housing and sustainable energy a 90-minute drive from San Francisco. But first, the group will have to market its way out of a tangled political position.
   
• MIT economist David Autor is helping shape the U.S. response to the biggest economic issues from the China Shock to job hunting after the pandemic.
   
• The far right’s acceptance of the euro means that possible victory in France’s election is unlikely to lead to financial crisis.

Follow us on X at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

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