Yesterday, the U.S. Supreme Court further limited the reach of a federal law used to hold corporations liable for human rights abuses committed abroad.
The ruling
In a 6-3 decision, the court dismissed claims that Cisco aided China’s persecution of Falun Gong, holding the Alien Tort Statute (ATS) does not permit aiding-and-abetting liability. Justice Amy Coney Barrett said courts cannot create new causes of action under the law. Read the court’s opinion here and read more about the history of the case here.
Context
The ATS has faced steady limits in recent years. Prior Supreme Court rulings (notably in 2013 and 2018) found that a strong U.S. connection was required to bring claims and have increasingly blocked suits against corporations for conduct abroad, including a 2021 decision involving Cargill and Nestlé.
The statute itself is only 33 words long and reads as follows: “The district courts shall have original jurisdiction of any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States.”
Why it matters
The decision further restricts the ATS, making it harder to sue U.S. companies over alleged abuses overseas and signals that any expansion of liability will likely need to come from Congress.
