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

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.

This aligned with the administration’s goals of protecting U.S. innovation, preventing lawfare

against American companies, and avoiding judicial interference in foreign relations best handled by the executive and legislative branches.

Barrett emphasized separation of powers: “The power to create causes of action belongs to Congress… Creating any cause of action ‘is an extraordinary act that places great stress on the separation of powers.’”

She noted the ATS is jurisdictional only and warned against courts inventing liability that risks “adverse foreign policy consequences.”