Good morning. European Union regulators plan to subject Twitter to a stress test to determine how well it complies with Europe’s new digital-content law, a top EU tech regulator said, ramping up the bloc’s preparations for enforcing the West’s most far-reaching digital-content law.

• Magnifying glass: A team of roughly five to 10 digital specialists from the EU plan to put Twitter, and possibly other companies, through their content-policing paces during a visit to San Francisco in late June, Thierry Breton, the bloc’s commissioner for the internal market, said in an interview.
   
• Consequence free: The test is voluntary, he said, and Twitter has agreed to be subjected to it. It won’t carry any fines or other enforcement consequences. It will offer companies a dry run for how the EU’s Digital Services Act, or DSA, will be enforced.
   
• Close scrutiny: Breton last week, noting Twitter had withdrawn from a voluntary EU code of conduct on disinformation policies, tweeted: “You can run but you can’t hide.”

Chains overcharging Medicare for drugs can be sued for fraud, Supreme Court rules.

The Supreme court on Thursday said lawsuits could proceed alleging that the supermarket chains Safeway and Supervalu defrauded the government by claiming Medicare and Medicaid reimbursements at list price for drugs that they typically sold to consumers at steeply discounted rates.

Writing for a unanimous court, Justice Clarence Thomas said the central question in the suits wasn’t if a reasonable person hypothetically could have misunderstood the reimbursement rules, but rather if the executives actually did. And evidence suggested that the supermarkets knew they were cheating the program and took steps to hide it, he wrote.

U.S. removes sanctions on Russia-linked yacht roiling Caribbean nation.

An abandoned yacht linked to Russian oligarch Andrey Grigoryevich Guryev has been taken off U.S. sanctions lists, clearing the Caribbean nation of Antigua and Barbuda to get the derelict vessel out of its waters.

The U.S. Treasury Department on Thursday took the yacht, called the Alfa Nero, off its list of sanctioned entities, a move that gives Antigua and Barbuda some legal comfort to execute its plan to sell the ship and keep much of the proceeds.

• The Supreme Court ruled Thursday that a building-materials company could sue a union it claims tried to spoil its concrete and damage its trucks during a strike, without waiting for the National Labor Relations Board to resolve allegations between labor and management.
   
• Vanguard Group was fined and censured by the Financial Industry Regulatory Authority for errors that appeared in more than eight million account statements.
   
• Several million vehicles made by Korean automotive brand Kia have air-bag inflators that regulators have warned could explode during a crash and spray the car’s interior with metal shrapnel, according to a newly released federal document.
   
• Airbnb is suing New York City over a new law that adds restrictions for short-term rentals in the Big Apple.

Violent clashes trigger fears of new war in Europe.

U.S. and European diplomats are rushing to contain spiraling violence at the heart of Europe and prevent a fresh conflict on a continent shaken by Russia’s invasion of Ukraine.

The clashes took place in Kosovo, one of a string of small Balkan nations created after the violent breakup of Yugoslavia in the 1990s. The eruption of violence left dozens of people wounded this week, including Italian and Hungarian servicemen.

China’s missile threat drives new U.S. approach in Asia.

By dispersing weaponry, troops and command posts among smaller outposts in the Asia-Pacific region, the U.S. hopes to make it harder for Beijing to strike a decisive blow by crippling any single military facility.

“The threat to fixed bases from the People’s Liberation Army Rocket Force, given its extraordinary growth in capabilities in the last few years, is front and center,” said Thomas Shugart, a senior fellow at the Center for a New American Security, a Washington, D.C. think tank.

• A new private panel, launched partly in response to Russia’s detention of Wall Street Journal reporter Evan Gershkovich, aims to help tackle the challenges the U.S. faces over the rising number of Americans unjustly detained abroad.
   
• Foreign ministers of the North Atlantic Treaty Organization gathered in Norway Thursday to prepare for their annual summit as pressure to give Ukraine explicit security guarantees and a path to alliance membership grows.
   
• The Biden administration is prepared to begin talks without preconditions with Moscow on steps to limit nuclear arms after the New Start treaty expires in 2026, national security adviser Jake Sullivan plans to say in a speech Friday.

• Board directors are playing an important role in cybersecurity. Michael Montoya from Equinix and Friso van der Oord from the National Association of Corporate Directors offer a workshop session to reinforce cyber knowledge for these executives.
   
• Has China’s slow postpandemic reopening changed the country’s outlook? Economics professor Keyu Jin and Zak Dychtwald, founder of Young China Group, discuss at WSJ’s CEO Council event in London.
   
• New truck-emissions regulations in California have drawn a clutch of startups that are racing to build electric-vehicle charging stations and cash in on the state’s drive to electrify truck fleets.

Huntley has led AT&T’s compliance function since 2014, when he became a member of the Dallas-based company’s senior leadership team. AT&T didn’t respond to an inquiry about his successor.

“He leaves behind an impressive legacy of talented employees that he has mentored, along with a strong culture of doing the right thing,” Chief Executive John Stankey said in a statement shared with The Wall Street Journal.

• President Biden fell down while on stage at the U.S. Air Force Academy on Thursday after handing out diplomas to the military academy’s graduates. The White House said he was fine.
   
• The Senate passed wide-ranging legislation Thursday that suspends the $31.4 trillion debt ceiling while cutting federal spending, backing a bipartisan deal struck by President Biden and House Speaker Kevin McCarthy to avert an unprecedented U.S. default.
   
• Apple’s savings account launched in April to great fanfare. Some customers say it has been hard to get their money out.
   
• Banks are tightening their lending standards. Small businesses are paying the price.
   
• A chatbot designed to aid people seeking help for eating disorders has been taken offline after it provided some users with diet advice.

Follow us on Twitter 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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