Supreme Court Reins In Activist Lawsuits, Major Win for U.S. Businesses

The decision slams the door on expansive, judge-made lawsuits that have long threatened U.S. businesses operating abroad.

Justice Amy Coney Barrett authored the majority opinion, joined by Chief Justice John Roberts and Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, and Brett Kavanaugh.

“Today, we close the door that Sosa cracked and hold that courts may not create new causes of action for violations of international norms,” Barrett wrote.

“We also hold that the Torture Victim Protection Act of 1991, which contains an express cause of action, does not provide for aiding-and-abetting liability,” Barrett added.

The case involved claims by unnamed Falun Gong practitioners alleging Cisco Systems and its executives aided Chinese government persecution by selling networking equipment used in surveillance.

The Ninth Circuit had allowed the claims to proceed, but the Supreme Court reversed.

The Trump administration strongly supported taking the case and backed Cisco.

The Solicitor General participated in oral argument, urging the Court to reject judicial overreach that exposes American firms to unpredictable foreign-policy litigation.