• Three former students have filed suit, saying a SoCal school district failed to protect them from "rampant" sexual abuse.
• The lawsuit comes after Business Insider revealed decades of sexual misconduct by educators at Rosemead High.
• Former students across the nation are raising fresh abuse allegations, sparking probes and resignations.

A group of sexual abuse survivors have filed suit in Los Angeles Superior Court, saying their high school district failed to protect them from predatory teachers for years.

The lawsuit, filed by three former students at Rosemead High, claims that district officials created a "toxic" culture on campus where "sexual abuse by educators is rampant." Administrators failed to properly supervise employees, the lawsuit claims, and repeatedly "ignored and concealed the sexual abuse of minor students."

The plaintiffs in the suit, which cites Business Insider's investigation of sexual misconduct at the Southern California high school, include a pair of former students BI previously identified as L. and Clara. L. said she had a yearslong sexual relationship with her tennis coach Wing Chan while she was a student, while Clara said she was groped and sexually harassed by social science teacher Alex Rai for much of her senior year. A third woman, identified only as a Jane Doe, said she was sexually harassed and groped by her track coach, Eduardo Escobar, as a freshman.

Escobar, who resigned in 2008 following a district investigation of his conduct with multiple female students, denied sexually harassing and groping students but said "it was probably my fault that I didn't put enough distance between me and the athletes."

The lawsuit follows the resignation of multiple Rosemead teachers and the launch of a criminal investigation by the Los Angeles County Sheriff's Department.

"Our office has litigated against school districts for years. I've never seen another situation where, from top to bottom, the staff is trained in a way that violates the law," said attorney Michael Carrillo, who brought the case. "It's about protecting the interests of the school district over protecting children." In 2019, Carrillo secured a $5 million verdict against a teacher and the El Monte Union High School District (EMUHSD), which oversees Rosemead High, in a sexual misconduct case involving a teacher at another school.

District superintendent Edward Zuniga declined to comment. Chan, who for the past 15 years has worked at the LA County Probation Department, did not respond to requests for comment. Rai, who resigned in 2022 following a district investigation into his relationships with Clara and other female students, did not respond to requests for comment.

Meanwhile, the district has opened an investigation into allegations of sexual misconduct involving at least one current Rosemead High educator in the wake of BI's reporting. Special education teacher Edwin Reyes Villegas was put on leave in October, documents show; two people interviewed as part of the investigation said Villegas's relationship with a female student in 2022 was the focal point of the inquiry. Villegas did not respond to requests for comment.

Former Rosemead choir director David Pitts was also placed on leave in October from his job at nearby Gabrielino High School, after parents and community members complained to administrators about his conduct with students. As BI reported, Pitts established a relationship with his former piano accompanist, Cindy, that included shoulder massages and intimate conversations when she was a student and became sexual soon after she graduated.

Gabrielino's head of human resources, Ross Perry, said he expected the investigation of Pitts to conclude "before the end of the school year," but declined to answer other questions. Pitts didn't respond to requests for comment.

A group of current Rosemead students, meanwhile, have met regularly with administrators for the past 18 months to discuss an anti-grooming curriculum they hope will be implemented districtwide. The group has dubbed itself the Ceanothus Council Against Child Grooming, named after a native California shrub known for its resilience. Students didn't hide their frustration during an emotional school board meeting in October, when an alum, Kristy, spoke publicly for the first time about her experience having a sexual relationship with a teacher.

BI is only identifying Cindy and Kristy by their first names.

"The district is only willing to do as much as it takes to postulate the idea of transparency or reform," said Sofia Hernandez, the school board's student representative, who is a member of the Ceanothus group. "We ask EMUHSD to make a clear and explicit effort towards transparency, towards actual efforts to educate teachers and students. We ask for the bare minimum."

Ripple effects across the nation

BI's coverage of sexual abuse in schools has prompted many other former students to take action across the country.

In Loudoun County, Virginia, an alum of Broad Run High School, who asked to go by their middle name, Lee, had spent the decade since they graduated in 2012 grappling with how to come forward about their experience being sexually abused.

Lee said they were groomed by their marching band instructor, William Riddell, for a sexual relationship that began during their junior year. Riddell would drive Lee to his parents' house, where he used the basement to give private music lessons. But it wasn't until another of Riddell's students died by suicide in 2012 that Lee began to question the relationship. A school staffer later told Lee that investigators had discovered inappropriate text messages Riddell sent their classmate. "That's when everything shattered for me," Lee said. "I realized that I was not special."

After speaking to BI about their experience, Lee couldn't shake the feeling that something needed to be done. They connected with others who had witnessed Riddell's behavior with teenagers and spoke with a Fairfax County Police detective. Then things began to snowball.

In February, Lee met with a prosecutor from the Virginia Attorney's General office, a meeting invitation shows. The prosecutor shared that they'd executed a search warrant at Riddell's home and discovered extensive child pornography, Lee recalled, including a digital folder with Lee's name on it.

On March 30, Riddell was arrested on multiple counts of reproduction and possession of child pornography; Riddell was released on bond earlier this week and a preliminary hearing in his case is scheduled for July.

Spokespeople for Virginia Attorney General Jason Miyares and the Fairfax County Police Department declined to comment on the case, citing the ongoing investigation. Neither Riddell nor his attorney responded to requests for comment.

"Part of me feels validated. It's something I've been saying for 10 years," Lee said. "But if this had been addressed 10 years ago, maybe others wouldn't have been hurt."

In St. Louis County, Missouri, a former student of journalism teacher Erin Sucher O'Grady, who asked to go by only an initial, B., decided to report the instructor's sexual relationship with another student after seeing a BI call-out seeking such tips. She reported to district officials that her classmate had been groomed for sex by Sucher O'Grady, an award winning teacher at Clayton High School, when she was a student in the early 2010s. The relationship had gnawed at B. for years.

In late 2022, district officials opened an investigation of Sucher O'Grady, documents show. In January 2023, assistant superintendent Tony Arnold confirmed that the district had substantiated multiple policy violations by the teacher, including her communications with students. Sucher O'Grady resigned as part of a separation agreement and admitted no liability; she declined to discuss the district's investigation.

B. said that BI's reporting on sexual abuse in public schools was "instrumental to me deciding that something should be done" about her former teacher.

Back in Southern California, when another former high school student, who asked to go by only an initial, K., got in touch with BI in February of last year, she was wracked by doubt. After reading about how a Rosemead High journalism teacher, Eric Burgess, had groomed multiple teenage girls for sex, she'd begun to unpack her relationship with her Laguna Beach High School English teacher David Brobeck, which she said became sexual after she graduated in the late 2010s.

"I had a big crush on him, and I think other girls did, too," K. explained. "I'd just say he was handsome, and everyone thought it was funny."

K. recalled being drawn to Brobeck's charm and reputation as one of the school's most popular teachers. After graduation, K. would return to the school to run at the track. One day, Brobeck requested that she add him on Instagram. Their conversations quickly became sexual, K. said, and Brobeck confided that he'd always liked her as a student. Then he kissed her.

In August 2023, K. reported the relationship to the Laguna Beach Unified School District, which hired the private investigative firm Nicole Miller and Associates — the same firm that investigated Burgess at Rosemead in 2019 — to investigate Brobeck. Brobeck resigned in March of this year and will receive $80,000 in severance per the terms of his confidential agreement with the district, in which he admitted no wrongdoing; Brobeck declined to comment for this story.

At least one educator named in BI's nationwide investigation of sexual misconduct in schools is no longer around students. After leaving a job as PE teacher in the Lake Washington School District outside of Seattle, Scott Nelson was coaching basketball in the Issaquah school district. He'd resigned from the Lake Washington district in early 2023 following a district investigation that had identified a "pattern of inappropriate behavior" with students.

After BI's story appeared in December, Issaquah officials read his disciplinary file from Lake Washington for the first time. Nelson told BI he was soon informed that he would not be coaching again this year.

An Issaquah school district spokesperson said Nelson was a volunteer coach and that he did not disclose any of the allegations in his personnel file when he applied to work there. "We chose to rescind the opportunity to volunteer as a result of the failure to disclose the investigation," the spokesperson said.

Nelson described the documents as a "total misrepresentation of my career" and denied sexually harassing students. He said he is appealing the decision and wants to continue coaching.

"The HR person said it was too risky, so we don't want you to coach anymore," he said. "I told her, 'Look, if I had issues like this, do you really think I'd get involved in a school again?'"

Lax federal oversight

BI's reporting identified several states that lack the so-called "Pass the Trash" laws that the federal Department of Education has called on them to implement. In 16 states, school districts require only a criminal background check, with no further backgrounding of past misconduct allegations, which often do not generate legal proceedings.

Yet the federal Department of Education appears to have no plans to change the status quo. A department spokesperson said the federal law forbidding school employees from providing a recommendation for a teacher they have probable cause to believe engaged in sexual misconduct with a student "prohibits the Department from mandating, directing, or controlling specific state or local measures responsive to this provision."

After initially agreeing to discuss BI's findings, the spokesperson declined to make anyone available for an interview. In a written statement, the spokesperson said, "Education leaders have a responsibility for ensuring students' well-being in schools and that parents feel confident that their child is safe in school. Failing to remove known predators from schools is not only unacceptable, it is against the law."

Matt Drange graduated from Rosemead High in 2007.

The Los Angeles County Sheriff's Department Special Victims Bureau is investigating sexual abuse at Rosemead High. The investigators can be reached through the Temple City station or by calling (562) 946-7960.

• China is grappling with a retirement crisis as its population ages.
• According to OECD data, people over the age of 60 account for 13% of the country's workforce. 
• China is anticipating another 300 million people to reach retirement age in the next 10 years.

China is going through a retirement crisis, with a significant portion of older people finding that they can't afford to stop working. 

Citing data from the OECD, Reuters reported on Tuesday that of the 734 million people working in China, 94 million, or 13%, are over the age of 60, the retirement age for men in China. That rivals the share of workers who are of retirement age in the US, where 10%-15% are aged 60 or older.

The proportion of older people in the workforce has risen dramatically in the last few years, up from just 8% recorded in 2020. That's largely due to China's rapidly aging population, with officials anticipating 300 million people to reach retirement age over the next 10 years, according to OECD data. That's nearly half of China's workforce and not much smaller than the entire US population.

The demographic imbalance has put a huge strain on government benefits, especially considering China's high youth unemployment rate, meaning less money is added to the pool of available resources to keep people afloat in retirement. 

Monthly pensions in urban areas range from 3,000 yuan to 6,000 yuan, Reuters reported, which is equivalent to $415-$830 dollars in the US. Pension payments, at a minimum, are 123 yuan a month, the equivalent of $17. 

The situation mirrors some of what is going on in the US, with an aging population and a growing number of older people being forced to work past retirement age in order to keep paying the bills. 

Over 30 million baby boomers are nearing retirement without enough saved and over half of Americans over the age of 65 make less than $30,000 a year, according to 2022 Census data.

Meanwhile, 38% of older Americans would live under the poverty line if it weren't for Social Security payments, the Center on Budget and Policy Priorities found, though the Social Security and Medicare Board of Trustees said in a recent report that the program will only be able to pay out full benefits for the next 11 years or so.

• Young people think a four-day workweek would make them more productive.
• More businesses are backing the idea and testing it out with "fantastic" results.
• The practice is gaining momentum with companies all over the globe.

Young professionals said they don't need 40 hours a week to get their work done.

CNBC/Generation Lab surveyed 1,033 people between the ages of 18 and 34, and the results were overwhelmingly in favor of a four-day workweek.

In fact, 81% of respondents said working one less day a week would improve their company's productivity.

They're not alone — a shorter workweek has been a topic of discussion for years, and an increasing number of companies worldwide have begun testing that out over the past several months. In February, the Dominican Republic announced it would implement a six-month trial of a 36-hour workweek at some major companies.

A police department in Colorado moved workers from 40 to 32 hours a week in July 2023 and reported "fantastic" initial results months later.

Officers show up to work "energetic, more engaged, ready to hit the road and get work done," their commander previously told CNN.

The idea of a reduced working schedule has some notable backers. Billionaire Microsoft founder Bill Gates said in November that the workweek could get down to as little as three days with the help of artificial intelligence and machines.

"If you eventually get a society where you only have to work three days a week, that's probably OK," Gates said during an appearance on Trevor Noah's "What Now?" podcast.

But tech CEO Binny Gill previously told Business Insider that AI could have the opposite effect and possibly turn companies into "24/7 machines" where employees remain on call around the clock. The majority of companies have stuck with a five-day week, too.

One alternative: a four-and-a-half day week. Advertising company Basis Technologies ends the day at noon every Friday, and advocates believe it's a good alternative for companies who aren't ready to promise a full day off.

The CNBC/Generation Lab survey also showed that 60% of respondents, when asked: "Where do you think you do your best work?" said the office, with 40% saying from home. About three-quarters of those surveyed wouldn't accept more vacation days for less pay.

• Saudi AI firm Alat would divest from China if the US requests it, CEO Amit Midha told Bloomberg.
• Saudi Arabia has been pouring billions into AI and semiconductor initiatives in an attempt to become a major hub.
• Concerns have grown that Middle Eastern ties offered China a way to access advanced technologies.

A new state-backed Saudi Arabian fund centered on semiconductor and AI technology has guaranteed that it would divest from China if Washington requests it.

"US is the number one market, US is the number one partner, and we hope we can partner more deeply," Alat CEO Amit Midha told Bloomberg during the Milken Institute Global Conference.

The firm, financed by a $100 billion capital injection from Saudi Arabia's Public Investment Fund, would have no problems pulling back from Beijing when asked:

"So far, the requests have been to keep manufacturing and supply chains completely separate, but if the partnerships with China would become a problem for the US, we will divest," Midha said.

According to Bloomberg, the US has been in talks with the kingdom to ensure its massive AI buildout doesn't bolster China's own efforts in the sector, as competition heats up between Washington and Beijing. Officials have long portrayed China's access to AI and semiconductor technology as a national security threat.

Attention has fallen on Saudi Arabia as it plows significant money into AI, all to become a major industry hub. Aside from its investment in Alat, it has partnered with Silicon Valley players for another $40 billion in AI funding, The New York Times reported.

But that's also drawn scrutiny from the US, on the worry that Middle Eastern connections in China offer Beijing a sanctions loophole. Since late 2022, Washington has targeted China with a number of technology sanctions.

US officials have already had to mandate AI firms to divest from China, such as G42. According to Bloomberg, the United Arab Emirates' company complied, keeping access to US AI systems and leading to a $1.5 billion investment from Microsoft.

For his part, Midha sees value in sticking to the US, touting that his firm can be a meaningful support in building out necessary AI infrastructure.

The firm is also planning a partnership with two US tech firms this summer, while co-investing alongside another US fund, he said. He declined to name the companies involved.

• Cunard welcomed its fourth ship and newest in 14 years, the 2,996-guest Queen Anne.
• The 114,000-ton vessel has amenities like an Indian restaurant and pool under a retractable glass roof.
• Queen Anne's 2024 itineraries, primarily in Europe, start at $300 per person for a two-night cruise.

Cunard has operated 249 ships throughout its 184 years in operation, including the famous Queen Mary and Queen Mary 2. But it's been 14 years since the cruise line has launched a new vessel — until now.

Luxury cruisers, meet Queen Anne. It's Cunard's latest 2,996-guest ship, replete with 4,300 art pieces, archery, and the company's signature high-end flair. Its arrival was so highly anticipated that every cabin on its May 3 maiden voyage was fully reserved in minutes, the BBC reported.

The Carnival Corp. brand may be storied, but that doesn’t mean it’s past its prime.

Katie McAlister, president of Cunard, recently told the BBC that its bookings have grown 25% since the beginning of 2024 and are now the best they've been in a decade.

So it should come as no surprise that several of Queen Anne's 2024 itineraries are almost sold out.

Cunard isn’t in the business of building bigger.

Luxury cruise lines are beloved for their small-ship experience. Cunard is no different.

The new 114,000-ton cruise liner is the company's second-largest, although it can carry more guests than any of its other ships.

However, at a 2,996-guest and 1,225-crew capacity, Queen Anne is still tiny compared to the mass-market cruise industry's newest ships, the largest of which can carry 10,000 people.

Queen Anne's cabins are divided into four categories, listed from most to least luxurious: Queens Grill, Princess Grill, Britannia Club, and Britannia.

Despite being the cheapest option, the Britannia accommodations have high-end amenities like sparkling wine, Penhaligon toiletries, and tea and coffee machines.

That's nothing compared to the most luxurious Queens Grill suites, where guests get amenities like pillow menus, stocked mini-bars, a butler, fruit, and pre-dinner canapes.

Forget the sparkling wine — Queens Grill travelers get a bottle of Champagne.

Cabin categories are especially important for Cunard, not for reasons you might expect.

Besides how luxurious your hotel room at sea is, your cabin influences where you have breakfast, lunch, and dinner.

Guests in the Princess Grill suites dine at the Princess Grill restaurant, while Britannia Club guests stick to the Britannia Club restaurant, and so on.

Guests in the higher-end Princess and Queens cabins also get a pretty sweet bonus: an exclusive lounge with infinity hot tubs.

Regardless of your cabin, the 14-deck ship has plenty of areas for all guests to relax under the sun.

For example, the Pavilion. It's one of Queen Anne's go-to places for an afternoon swim, nighttime movie viewing, silent disco, and not-so-silent live music, all under a retractable glass roof.

The ship's pool club also has plenty of lounge seats for a more traditional pool deck experience. For something indoors, head to the drawing and game rooms instead.

Like every new cruise ship, Queen Anne has a pickleball court.

But unlike every new cruise ship, it also has archery — coaches, bows, and arrows included.

Travelers looking for a less intense afternoon can instead try their hand at the putting green, shuffleboard, or quoits.

Not confident in your athletic abilities? Don't worry — there's a bar nearby, too.

If you lose your pickleball match, you can retail therapy your pain away at Queen Anne’s high-end stores.

Travelers have been splurging big on their cruise vacations. On Queen Anne (and with help from one of the ship's personal shoppers), this could include a Bremont watch or Chanel makeup.

Or, do as cruisers do: Eat and drink the pain away.

The ship has 15 eateries. Unfortunately, you'll have to pay extra for the Mediterranean, Indian, Japanese, steakhouse grill, alfresco, and British restaurants.

Thankfully, the food hall-style buffet, room service, and cabin-assigned dining rooms are included in the fare.

Feeling peckish in the afternoon? Afternoon tea is held in the Queens Room, the same venue that hosts events like ballroom dancing and Cunard's signature black-tie galas.

Of course, a cruise wouldn’t be complete without a casino, spa, and nighttime shows.

Queen Anne is showing two new productions, including an adaptation of the classic British film "Brief Encounter."

For more casual entertainment, the ship also has a "show bar" helmed by a variety of musicians and entertainers.

For a more relaxing afternoon, try the spa's cryotherapy, "experience showers," and salt saunas.

Afterwards, to keep the wellness trend going, grab a healthy bite at the veggie and "sustainably sourced protein"-forward Wellness Cafe. Its kombucha bellinis are technically good for you, right?

Cunard is beloved for its regular transatlantic cruises on its Queen Mary 2 ocean liner.

In 2025, Queen Anne will embark on its first three-month around-the-world cruise. However, for the most part, it's not scheduled for repeat long-haul journeys.

Instead, in 2024, the ship will be homeported in Southampton, UK and travel on two- to 19-night itineraries across Europe.

The cheapest way to experience the new ship is a two-night summer cruise from Southampton to Hamburg, Germany, which currently starts at $300 per person.

But if money is no problem, the 18-night roundtrip Hamburg cruise during Christmas and the New Year might pique your interest — and your wallet. The itinerary's luxurious Queens Grill suites start at $19,350 per person.

• MTG's backing off of her threat to force a vote on ousting Speaker Mike Johnson — for now.
• It's going to fail anyway, Trump is against it, and it looks like she's trying to save face.
• This whole episode has exposed the limits of Greene's power in Congress.

Rep. Marjorie Taylor Greene is backing off her threat to oust Speaker Mike Johnson — for now.

After two days of meetings with Johnson, the Georgia Republican, along with Rep. Thomas Massie of Kentucky, told reporters outside the Capitol on Tuesday that the ball's now in the speaker's court to satisfy her demands. She did not specify a timeline for him to do so.

Those demands — which range from the obvious to the outlandish — include the following:

• No more Ukraine aid for the rest of the year. It was already unlikely that Ukraine aid would come up again this year after Congress approved another $60 billion last month.
• Don't hold votes on bills that most Republicans don't support. House Republicans already have a rule requiring this, though it's been violated a number of times, including on Ukraine aid.
• Defund the Department of Justice's special counsel investigating former President Donald Trump. It goes without saying that this won't happen — President Joe Biden and the Democratic-controlled Senate won't accept it, and it's far from clear that every House Republican would either.
• Pass a stop-gap government funding bill before the election that cuts spending by 1%. This one is feasible, though a relatively small demand over which to threaten a speaker's ouster.

Since Greene arrived in Congress in 2021, her power has come from her relationship with Trump, as well as the notion that — whatever her GOP colleagues might think of her — she has a closeness to the party's activist base that many of them do not.

That's why former House Speaker Kevin McCarthy worked hard to elevate her and bring her into the fold when Republicans retook the majority.

Yet in this latest crusade, which has seemingly consumed Greene for the last month and a half, she largely stands alone. Trump, according to several reports, opposes Greene's bid to hold her vote. And if her Republican colleagues are facing pressure at home to join her, they sure aren't acting like it: just two other House Republicans have sided with her effort to throw out Johnson.

The congresswoman's ouster effort was already doomed to fail, given House Democrats' move to protect him. Amid the ongoing delays with Greene, both Democrats and Republicans have largely made up their mind on where they stand on the issue, sapping her bid to put lawmakers on record of much revelatory power.

It's still unclear whether she will ultimately force the vote, but at this point, no one's all that worried. Republicans would likely put the matter to bed quickly, holding the vote immediately after she forces it and moving on to other matters.

And on Tuesday, when asked about Greene's demands, Johnson rolled his eyes.

"This is not a negotiation," he said. "I'm doing my job, and part of the job is taking suggestions and thoughtful ideas from members, and that's what we're doing here.

• Apple's ad for the new iPad Pro shows various artistic tools being crushed. It feels off.
• It hit a nerve: People are concerned with human creativity being replaced by tech, like the iPad.
• It's a rare misstep for Apple advertising.

Apple's promotional video for the newly upgraded iPad Pro has struck a discordant tone. CEO Tim Cook, who tweeted it out, is being ratioed to the heavens on X over the ad.

The video shows a large pile of creative tools — cans of paint, a piano, a trumpet, a record player, books, a vintage arcade video game — and slowly crushes them all in a hydraulic press.

When the press reopens, it's all replaced by the ultra-thin iPad Pro.

Of course, it's meant to show off how an iPad is a great tool for creatives.

But it also struck a raw nerve. We're in a moment of heightened anxiety about the idea of AI replacing human creativity. Already, visual artists, photographers, musicians, and writers are seeing that their work can be mimicked by AI — and they see it as a very real threat to their livelihoods. And it's not just artists who are upset about this; the general public is also uneasy about the idea of soulless computer-generated music or visuals.

We're also seeing how AI is accelerating the "enshittification" of the internet — Facebook pages loaded with AI images of "shrimp Jesus" are just the tip of the iceberg.

The reactions online were probably not what Apple was expecting:

Yes, the ad is a rare miss for Apple, which has some iconic advertising, like the "1984" hammer ad, the dancing silhouettes for iPod, Zooey Deschanel asking, "Siri, is that rain?"

I'll admit, the thinness of that new iPad Pro really is impressive. It's thinner than an iPhone! And it has the new M4 chip even before the MacBook Pro. And an OLED screen. All of that stuff is thanks to human ingenuity. It's a shame the iPad ad wants to crush it.

• This post originally appeared in the Insider Today newsletter.
• You can sign up for Business Insider's daily newsletter here.

Halfway to the weekend! Who says the housing market is tough? You can buy this lovely home in France for checks notes $454 million.

In today's big story, we're discussing TikTok's lawsuit against the US government to stop its potential ban — and asking you to pick a side.

What's on deck:

• Markets: Top hedge funds turn to these people to get investing talent in the door.
• Tech: Mark Zuckerberg once considered acquiring the Associated Press.
• Business: Get ready, home sellers: It's about to be a summer from hell.

But first, see you in court.

If this was forwarded to you, sign up here.

The big story

A suit over swiping

Here. We. Go.

From the moment the ink was dry on the law banning TikTok in the US, barring a sale, a legal fight was sure to follow. Two weeks later, the popular app answered the bell.

TikTok and its parent company ByteDance filed a lawsuit Tuesday against the federal government, write Business Insider's Dan Whateley and Geoff Weiss.

The legal battle set to unfold is a fascinating who's who of major business topics. Government regulation of tech? Check. US-China tensions? Check. The future of the creator economy? Check.

And the knock-on effects extend beyond TikTok, impacting everything from President Joe Biden's reelection campaign to Apple and Tesla.

But don't expect things to wrap up quickly. It'll take time for all of this to work its way through the courts. (As always, the real winners are the lawyers.)

The TikTok-US government fight pits two pillars of American society against each other: free speech and national security.

Let's look at both arguments and then you pick a side.

The case for banning TikTok: The past decade taught us the incredible power of social media, from the data it collects on users to the information it pushes out to them. We also know foreign actors have leveraged social media to interfere with an election.

TikTok plays on both those fears. Not only is it a massively popular app that users seem to lose track of time on. Its parent company is based in Beijing, the capital of a country the US is not on the best terms with.

With young people turning to TikTok for news — and China reportedly trying to influence US elections — you start to see where the concerns are coming from. (One legal expert told BI the law had a 70% chance of surviving a legal challenge.)

The case against banning TikTok: To borrow (and alter) a famous movie line, "Show me the evidence!"

We can talk until we're blue in the face about the Chinese Communist Party potentially forcing ByteDance to share TikTok's US user data or influence operations on its behalf. But the US government hasn't provided evidence that's happening. And TikTok maintains its data is safe and separate from outside influence.

Meanwhile, TikTok has helped plenty of users earn money and launch full-blown careers seemingly overnight.

And who's to say this stops with TikTok?

The threat of foreign influence might make the TikTok ban easier to swallow. But what happens the next time the government wants to exert some control over social media?

Regulators haven't been shy about going after Big Tech. A successful TikTok ban could open the door for more aggressive actions against others in tech.

So, which side do you fall on?

Vote here.

3 things in markets

1. Citi's Jane Fraser isn't sold on a soft landing. The bank's CEO remains hopeful the Fed can stick an economic soft landing, but acknowledged how hard it is. In the meantime, inflation is hitting lower-income Americans thef hardest, Fraser said.
2. The people making key hires at the biggest hedge funds. Business-development executives are tasked with recruiting and retaining the top investing talent for multimanager hedge funds. From Citadel to Millennium, these are the BDs courting top portfolio managers.
3. Is a recession coming? A lesser-known Piper Sandler indicator that's predicted the last 11 economic downturns just flashed red — but in better news, the firm's chief investment strategist, Michael Kantrowitz, still expects stocks to carry on racking up gains in the short run.

3 things in tech

1. Mark Zuckerberg once considered acquiring the Associated Press. Between 2017 and 2018, with Facebook under scrutiny for its role in the misinformation surrounding the 2016 election, Zuckerberg considered acquiring or permanently funding the AP.
2. New iPads are here. Apple unveiled new iPad Air models, as well as iPad Pros with M4 chips and the first OLED display in the iPad lineup. The company also showed off new iPad accessories, like a $129 Pencil Pro and a new Magic Keyboard.
3. OpenAI destroyed a trove of books used to train its AI model. Newly unsealed documents in the class action lawsuit brought by the Authors Guild against the startup revealed it had deleted two huge datasets, named "books1" and "books2," that had been used to train its GPT-3 AI model. The documents also showed that the two researchers who created the datasets are no longer employed by OpenAI.

3 things in business

1. Good luck trying to sell your home this summer. The age of insane bidding wars and huge concessions is coming to an end. As buyers' options slowly increase, sellers may have to slash asking prices or wait longer for a viable offer to come along.
2. Bob Iger has a new plan for Marvel. In Disney's earnings call, Iger announced plans to limit the number of Marvel shows and movies released each year. The company also reported mostly strong earnings, but its stock fell as much as 11% after announcing lighter-than-expected subscriber numbers.
3. Less on booze, more on rent. BI compared how adults aged 25 to 34 spent their money in 1989 and 2022. Today's millennials are spending less on food and alcohol, but more on housing and healthcare.

In other news

• Judge threatens Trump with contempt for 'cursing audibly' during Stormy Daniels testimony, new trial transcript shows.
• Elon Musk is a homeowner again, despite his claims of couch surfing.
• 'You hate Donald Trump!' Stormy Daniels accused of vendetta in scorching cross-examination by Trump lawyer.
• Uh, this music-streaming app called Musi sure feels like it's in a gray area.
• How 12 brands are using generative AI in their ad campaigns, from bringing the artist Salvador Dalí to life to helping shelter pets get adopted.
• Meta is about to open up the generative AI floodgates for advertisers with new tools.
• GM wants to scoop up interns impacted by Tesla's cuts, recruiter says.
• How much influencers charge for sponsored posts, Gen Z views on AI influencers, and other key takeaways from new influencer-marketing data.

What's happening today

• Today's earnings: Airbnb, Uber, and other companies are reporting.

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. George Glover, reporter, in London.

• The barrier to influencing is lower than ever, meaning more and more competition to succeed.
• Audiences are favoring authentic and knowledgeable content creators over follower count.
• It's the "intellectual influencers," or "thought leaders," who are likely to thrive.

Influencers are out, and thought leaders are in.

With TikTok facing a US ban, YouTube going through a period of unrest, and the next social-media platforms rearing their heads, influencers are facing an uncertain future.

Many are now having to think hard about what they provide to their audiences and whether their followers will stick around.

The barrier to influencing is lower than ever, meaning viewers are more discerning. They are turning their backs on creators who seemingly just promote products and go on out-of-touch, lavish trips and leaning more toward those who offer them content with more meaning.

Nya Étienne, who is a journalist and TikTok content creator, refers to this concept as the rise of "the intellectual influencer."

"People are facing burnout on social media," she told Business Insider. "They want to see content with more substance, and they want to see influencers and creators as three-dimensional people, not just as people trying to sell them things."

People want 'edutainment'

This new breed of influencer could outlast all the rest and may soon be dominating social media feeds.

"People are now starting to shift their attention to what I like to call thought leaders," Katya Varbanova, a content creator and the CEO of Viral Marketing Stars, told BI. "An influencer is somebody that influences you because of their personality and personal taste and personal preferences, whereas a thought leader influences you because of their expertise."

Back when posting on social media was novel, the audience of an aspiring content creator would grow exponentially simply because they were entertaining to watch. Now, anyone can be an influencer — they just have to pick up their phone, shoot a video on TikTok, and edit it within the app with ease.

"The barrier to entry for creators is so low, and I think the standards of the general public are rising because of that," Varbanova said.

"They don't just want to be entertained or just want to be educated. They want to be edutained."

People want to hear from creators with knowledge, such as a psychologist with 20+ years of experience who can post deep dives into a topic as a side hustle to their day job. They don't want an inexperienced teenager's view on nutrition, they want a registered dietician to bust food myths and tell them what they should be eating.

A 2023 survey of 9,000 global shoppers from Bazaarvoice, a consumer and retailer platform, found, in general, that influencers with millions of followers just don't resonate like they used to.

Overall, respondents pointed to favoring authentic content over a follower count and the importance of experts. More than a quarter (26%) of respondents said they were influenced by experts on a particular topic when purchasing something, while 33% said they had bought a product based on a recommendation from a specialist.

A 2023 survey by Matter Communications, a brand elevation agency, also found that authenticity was paramount for viewers when choosing who to follow. Relatable personalities came out top, with 61% saying they found these more appealing, followed by expert personalities (43%) and just-for-fun personalities (32%).

"It just used to be so easy to get attention," Varbanova said. "Now, because it's harder, and because people have more choice, they're more selective."

Audiences will still watch quick dopamine-hit content that doesn't require too much brain power, as well as videos that make you think deeper about a topic. But the latter is in a much less crowded field.

When it comes to brand deals and promotions, someone trusted is also going to have a better chance of generating sales than someone who's not, Varbanova said.

Staying relevant

Koko Dubuisson, a fashion content creator from Boston, told BI TikTok was the platform where she has seen the most growth, and she believes that's down to how real it is.

For example, restaurant reviewers, such as Keith Lee, are becoming trusted replacements to Google reviews for young people. These kinds of creators can "really make a business boom," Dubuisson said, because they are expert voices.

Even ultra-specific niches of content, such as farmers cleaning horseshoes, can be addictive. Some people like ASMR, others like true crime. It's the content that makes you feel something that will persist, Dubuisson believes.

"I feel like even years down the line, content creating is still going to be relevant," she said.

It's more a matter of how influencers themselves will stay relevant as some platforms disappear and others surface.

The influencer industry is "growing up," Kaye Putnam, a psychology-based brand strategist and YouTube creator, told BI. And those who want to keep up need to move toward professionalization and specialization, she said. That's the type of content that will be dominating feeds.

The influencers who will succeed have to build a "true business around their influencing" and diversify by starting up email lists, such as Substack, or tending to their communities on platforms like Circle or Discord.

"With ChatGPT, we can Google or find the answer to anything," Putnam said. "So having a unique point of view is incredibly important."

That's not to say the days of a perfectly curated feed are dead. If that's something an influencer truly has a passion for, they should lean into that, Putnam said. Just proceed with caution and let followers know they still have something in common with you.

"We get kind of resentful when people flaunt what they have without also pairing that with some vulnerability or some humanness at the same time," she said.

"We create that parasocial relationship with them when they're not so perfect, and I think people are demanding that more than ever."

• Realtor.com identified 15 large US cities with the lowest incomes needed to afford a home.
• Some of the most affordable cities for homebuyers who earn less are in the South and Midwest.
• Pittsburgh, where a $67,000 income comfortably buys a typical $250,000 home, tops the list.

We're more than four months into 2024, and US mortgage rates show no signs of easing.

Persistently high home prices and wallet-squeezing inflation are sobering realities. According to a recent survey by nationwide property intermediary service IPX1031, 70% percent of Americans don't think they can swing buying a home this year.

But don't throw in the towel just yet.

Realtor.com has identified 15 large cities where homebuyers can make less than $100,000 a year — about the typical income of a household with two or more married or related members — and still afford to purchase a median-priced property.

"As a result of inflation, a six-figure salary doesn't stretch as far as it used to, but it continues to be a significant milestone for many households," Danielle Hale, chief economist at Realtor.com, told Business Insider.

While the overall income needed to comfortably buy a house in the US has increased by $5,900 since last year and median home prices have jumped significantly compared to a decade ago, prospective buyers in these cities won't spend more than 30% of their income on properties — a telltale sign of being cost-burdened.

Many of the cities that are more affordable for homebuyers are in the South, the Midwest, or the Mid-Atlantic states — which are known for their relatively cheaper costs of living. Not a single city from the West made the cut, underscoring the considerable cash needed to achieve homeownership in states like California relative to how much people make.

"In some areas, like the South, we're seeing an increase in smaller-footprint homes for sale, which helps dampen prices. Furthermore, in many of these regions, builders have done a better job of keeping up with housing demand," said Hale. "In part, the home prices in the West reflect the reality that the tech industry has played a significant part in boosting incomes in the region. However, we also see the impact of limited construction stifling supply and pushing up home prices."

Realtor.com determined where homeownership is most achievable based on income by choosing places where the typical person wouldn't spend more than 30% of their income to buy a home given a 205 down payment and a 30-year fixed-rate mortgage with current interest rates. Researchers also examined local taxes and home insurance costs.

Here are the 15 US cities where prospective buyers with relatively lower incomes can still purchase houses, according to Realtor.com.

15. San Antonio

• Median home list price: $345,000
• Median household income required to purchase a home: $100,000

14. Cincinnati

• Median home list price: $375,000
• Median household income required to purchase a home: $99,000

13. Oklahoma City

• Median home list price: $330,000
• Median household income required to purchase a home: $98,000

12. Memphis

• Median home list price: $339,000
• Median household income required to purchase a home: $91,000

11. Baltimore

• Median home list price: $352,000
• Median household income required to purchase a home: $91,000

10. New Orleans

• Median home list price: $335,000
• Median household income required to purchase a home: $90,000

9. Rochester, New York

• Median home list price: $295,000
• Median household income required to purchase a home: $87,000

8. Indianapolis

• Median home list price: $340,000
• Median household income required to purchase a home: $87,000

7. Louisville, Kentucky

• Median home list price: $327,000
• Median household income required to purchase a home: $87,000

6. St. Louis

• Median home list price: $294,000
• Median household income required to purchase a home: $82,000

5. Buffalo, New York

• Median home list price: $285,000
• Median household income required to purchase a home: $79,000

4. Birmingham, Alabama

• Median home list price: $297,000
• Median household income required to purchase a home: $75,000

3. Cleveland

• Median home list price: $255,000
• Median household income required to purchase a home: $71,000

2. Detroit

• Median home list price: $250,000
• Median household income required to purchase a home: $69,000

Pittsburgh

• Median home list price: $250,000
• Median household income required to purchase a home: $67,000