Ruling dismisses lawsuit accusing Cisco of aiding China’s persecution of Falun Gong members, limiting human rights claims against firms.
The U.S. Supreme Court ruled 6-3 to dismiss a lawsuit alleging Cisco Systems helped China surveil and persecute Falun Gong practitioners, narrowing corporate liability under the Alien Tort Statute (ATS). The decision reverses a lower court’s finding that allowed aiding-and-abetting claims against corporations for human rights abuses abroad.
The ATS, dormant for nearly 200 years before its revival in the 1980s, had been used to pursue international human rights cases in U.S. courts. The court held that the statute does not extend to accomplice liability, blocking plaintiffs from suing corporations for facilitating abuses.
The ruling does not address broader corporate accountability but restricts legal avenues for holding firms liable under the ATS. No immediate market reaction was reported.