Thursday, July 1, 2021
On June 17, the U.S. Supreme Court held that U.S. corporations are not liable for alleged abuses against non-U.S. citizens in foreign countries merely because general operational decisions made in the United States contributed to the tortious overseas conduct.
Nestlé USA, Inc. v. Doe I, 593 U.S. __ (2021)
. At the same time, however, the Court signaled that non-citizens can sue U.S. corporations for violations of international law in principle, even if questions remain about the actual scope of claims that courts may recognize going forward. Meanwhile, as U.S. consumers and investors intensify their own demands for responsible sourcing, sustainability, and transparency in global product and commodity supply chains, the Court’s decision may lead to more pressure on lawmakers, regulators, and corporate boards and officers to advance initiatives that independently address these concerns.