Good morning. The Supreme Court made it easier for the Justice Department to charge corporations owned by foreign states, saying a federal law from 1976 doesn’t shield Turkey’s Halkbank from high-profile money-laundering charges.

In a decision Wednesday, the justices said the Foreign Sovereign Immunities Act of 1976 doesn’t protect such entities from criminal charges.

• The Background: Prosecutors alleged Turkish and Iranian government officials received payouts of tens of millions of dollars in exchange for promoting and helping to conceal the alleged money-laundering scheme. After being indicted, Halkbank denied the allegations and asked a federal judge in Manhattan to dismiss the case. The bank argued it couldn’t be prosecuted in U.S. courts because it is an instrumentality of the Turkish government.
   
• Halkbank's Argument: The bank argued that allowing U.S. criminal proceedings against companies owned by foreign states would negatively affect American national security and foreign policy.
   
• What Happens Next: The ruling wasn’t a total defeat for Halkbank, however. The Supreme Court left open the question of whether Halkbank could be shielded from prosecution under principles of common law, which is derived from custom and judicial precedent rather than statutes. The court sent the case back to the Second U.S. Circuit Court of Appeals for further analysis of that potential defense.

The Risk & Compliance Forum on May 9 will feature speakers including Glenn Leon, chief of the fraud section at the Justice Department, Assistant Secretary for Export Enforcement Matthew Axelrod, Elizabeth Atlee, chief ethics & compliance officer at CBRE and Sidney Majalya, chief risk officer at Binance.US. You can register here.

GlobalFoundries files trade-secrets lawsuit against IBM. 

GlobalFoundries Inc. has filed a lawsuit accusing International Business Machines Corp. of misappropriating its trade secrets.

Filed in New York federal court, the suit alleges that IBM illegally disclosed GlobalFoundries’ intellectual property to IBM’s partners, including Intel Corp. and Japan’s state-backed chip maker Rapidus, after IBM sold its chip business to GlobalFoundries in 2015.

Seagate to pay $300 million for violating export restrictions on China’s Huawei.

Two subsidiaries of Seagate Technology Holdings PLC have agreed to pay $300 million for violating export restrictions placed on Huawei Technologies Co. over fears the Chinese telecommunications company poses a threat to U.S. national security.

The fine is the largest stand-alone administrative penalty ever imposed by the Commerce Department’s Bureau of Industry and Security, according to the agency, which administers and enforces U.S. export controls.

Related:

• TSMC Seeks Up to $15 Billion From U.S. for Chip Plants but Objects to Conditions

• Supreme Court justices on Wednesday questioned whether a Colorado stalking law violates the First Amendment because defendants can be convicted even if they didn’t intend to threaten victims with physical violence.
   
• Lawmakers are at odds over how to regulate stablecoins as the fallout from cryptocurrency platform FTX’s collapse last year has left Democrats nervous about strengthening crypto’s ties to the broader financial system.

Ukraine asks Turkey to seize ship it alleges is carrying stolen grain. 

Ukrainian authorities have asked Turkey to seize a ship carrying what prosecutors in Kyiv say is thousands of tons of grain stolen from areas of Ukraine occupied by Russia, according to correspondence reviewed by The Wall Street Journal.

The ship, the Panama-flagged Bomustafa O, arrived in the Turkish Black Sea port of Samsun on Monday, with a cargo of 19,000 tons of barley, according to shipping records and the correspondence. Days earlier, Ukrainian prosecutors in Kyiv wrote to Turkish authorities asking them to seize the ship, saying that it had loaded barley at a port in Russian-occupied Crimea, according to the correspondence reviewed by the Journal.

Also:

• Russia Turns to Treason Laws as Putin Extends Crackdown
• Russian Drones Target Odessa as Ukraine Seeks More Air Defenses
• Russia Seeks to Deplete Ukraine’s Air Defenses Ahead of Kyiv Offensive

• A $1.2 trillion liquidity crunch looms for Europe’s lenders, testing their ability to stand on their own after more than a decade of easy money from the European Central Bank.
   
• North Korean leader Kim Jong Un said the country’s first military reconnaissance satellite is complete, hailing it a technological advance that will provide real-time information about the military movements of the U.S. and its allies.
   
• The detention of Wall Street Journal reporter Evan Gershkovich in Russia last month is a recent example of the increasing number of attacks on journalists.

CFPB says staffer sent 250,000 consumers’ data to personal account.

A Consumer Financial Protection Bureau employee forwarded to a personal email account confidential information on thousands of consumers and dozens of financial firms, in what the agency has described to U.S. lawmakers as a major incident.

The employee, who no longer works at the CFPB, made an unauthorized transfer of records containing personal information on approximately 256,000 consumers at one institution, as well as confidential supervisory information on 45 institutions, a CFPB spokesman said. There is no evidence the records were shared beyond the former employee’s personal email account, the spokesman said.

• A patient suing a Pennsylvania-based hospital network over a data breach has asked a judge to force the organization to pay a ransom fee to hackers in a bid to have stolen photos of naked patients taken off the internet.

• Ernst & Young's failed breakup attempt cost the company $600 million. Employees are angry. But that might be the least of it: The outlook for EY’s business of charging for advice and accounting is getting weaker in the U.S. by the month.
   
• The iPhone setting thieves use to lock you out of your Apple account. 
   
• The world’s richest person, Bernard Arnault, auditions his fiive children to run LVMH, the luxury empire. 
   
• Economically sensitive stocks, like those of transportation and small-cap companies, are trailing the broader market, reflecting growing investor concern about a potential recession.
   
• Jack Teixeira, the 21-year-old Air National Guardsman charged with leaking top-secret U.S. documents, shares at least one thing with leaker Edward Snowden: They both worked in tech support.