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Supreme Court mulls liability of tech firms in overseas rights abuses

A member of the Bulgarian Falun Dafa association attends a protest in front of the Chinese embassy in Sofia, Bulgaria, in July 2023. The protest marked the 24th anniversary of the start of a massive campaign against Falun Dafa in July 1999, when the Chinese Communist regime began the repression and persecution of Falun Gong and its followers in China. File Photo by Vassil Donev/EPA

WASHINGTON, April 28 (UPI) — Supreme Court justices appeared divided Tuesday morning about whether a U.S. tech company can be held liable for aiding the Chinese government’s alleged torture of a spiritual minority.

The case is centers on whether practitioners in China of the Falun Gong religion — also called Falun Dafa — can sue California-based tech company Cisco Systems for aiding and abetting violations of the 18th-century Alien Tort Statute and the Torture Victim Protection Act, which was enacted in 1992.

Cisco attorney Kannon Shanmugam called for barring aiding and abetting liability. He argued that allowing liability to be implied would harm the government’s separation of power.

Much of Tuesday’s debate hinged on whether the statute’s 200-year-old “law of nations” wording was applicable to the relatively more modern concept of human rights abuses, as well as whether the first Congress meant for the victim protection act to include second liability for aiding and abetting torture.

The case marks the latest attempt to define the scope of the statue, which for over two centuries has allowed foreigners to bring lawsuits in U.S. courts for serious violations of international law.

More than 20 years ago, Cisco developed and sold to the Chinese government a surveillance system, which the government used to find, interrogate and allegedly torture Falun Gong practitioners.

During arguments for Cisco Systems Inc. vs. Doe I, some justices emphasized Cisco’s awareness of their technology’s role in persecution, while others said that including liability for aiding torture in the alien tort statue contradicted with historical precedent and had foreign policy risks.

But no clear majority converged around either position in the conservative majority court.

“We’ve maybe misled Congress into thinking, ‘Oh, we don’t need to do anything about these human rights things, the courts are taking care of it,'” Justice Brett Kavanaugh said.

“I’m concerned at a separation of powers level that we’re not really allowing suits to go forward, but Congress thinks we are because of a lack of clarity in our case law.”

Justices Ketanji Brown Jackson and Sotomayor appeared more supportive of those who brought forward the original lawsuit — several Chinese nationals and one U.S. citizen.

Addressing the wording of the Torture Victim Protection Act, Sotomayor told Shanmugam: “I’m not sure how you get to your position that ‘subjects to’ can’t mean aiding and abetting because command liability doesn’t necessarily require subjecting someone to the torture.”

“It makes someone who’s in a command position who knows of the torture and permits it to happen … aiding and abetting. We’ve defined aiding and abetting as an active step in permitting and encouraging the substantive act.”

The Alien Tort Statute grants federal district courts original jurisdiction over any civil action in which an alien sues for a tort “committed in violation of the law of nations or of a treaty of the United States.”

“What’s the point of previous [Supreme Court] decisions that determined U.S. corporations could be defendants?” said Sophia Cope, senior staff attorney at Electronic Frontier Foundation, who helped write an amicus brief in support of the Falun Gong members.

“Excluding second liability from the ATS would be a huge loophole for companies to sell services which are used for human rights violations.”

By rejecting judicially created aiding and abetting liability, the court would close the last major loophole that the plaintiffs’ lawyers have “exploited” to keep cases with such claims under the ATS and TVPA alive, said Cory Andrews, vice-president of litigation at the Washington Legal Foundation. The foundation submitted a brief in support of Cisco in February.

“It would reaffirm that the ATS is a narrow 1789 statute, not a modern vehicle for global human-rights enforcement,” Andrews said.

The case had its origins 15 years ago. In 2011, the plaintiffs — 13 Chinese nationals and one U.S. citizen — filed the original suit in the District Court for the Northern District of California, claiming they were targeted using Cisco’s technology and then detained and tortured.

The district court dismissed the claims, but it was brought to the Supreme Court after a panel of federal judges on the U.S. Court of Appeals for the Ninth Circuit agreed in 2023 that the plaintiffs had met a legal threshold to continue with the lawsuit.

A decision is expected by the end of June.

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Venezuela Installs Commission to Evaluate State Assets, Mulls Possible Sell-Offs

Rodríguez announced four categories for state assets, with “non strategic” ones destined for privatization or liquidation. (Presidential Press)

Caracas, April 23, 2026 (venezuelanalysis.com) – Venezuelan Acting President Delcy Rodríguez has established a commission to assess the “strategic” value of state-owned assets and their possible transfer to the private sector.

The Commission for the Evaluation of Public Assets held its first meeting on Wednesday. In a short televised message, Rodríguez said the commission had the purpose of bringing “agility and modernity” to the Venezuelan state.

The acting president announced that Venezuelan state assets would be divided into four categories: strategic ones to remain under state control, “strategic alliances” where the state retains ownership but management is turned over to the private sector in concession-type deals, “non-strategic” assets to be fully privatized; and assets to be liquidated or reincorporated elsewhere.

“The purpose of this commission is to elevate Venezuela’s productivity levels, so that the Venezuelan state can be robust and attend to the strategic aspects of the nation,” she said.

The commission includes Economic Sector Vice President Calixto Ortega, Finance Minister Anabel Pereira, Industry Minister Luis Villegas, State Solicitor Arianny Seijo, Communes Minister Ángel Prado, as well as Luis Pisella, former president of industry guild CONINDUSTRIA, representing the private sector.

Former Venezuelan President Hugo Chávez spearheaded a nationalization campaign in the 2000s to impose state control of key economic areas such as oil, electricity, telecoms, banking, and the heavy industries.

In recent years, with the economy heavily targeted by US sanctions, the Nicolás Maduro government expanded “strategic alliances” with the private sector, particularly in the Venezuelan countryside. However, campesino organizations have denounced that the private takeover of companies that formerly supplied seeds, inputs, and tractors has significantly raised costs for small-scale producers. Strategic alliances in sugar mills have also drawn complaints of companies defrauding sugar cane growers.

The Cisneros Group, one of Venezuela’s largest private sector conglomerates, has recently announced plans to raise over $1 billion in funds ahead of potential sell-offs of state assets.

Elias Ferrer Breda, financial analyst and director of Orinoco Research, told Venezuelanalysis that he foresees privatizations in basic industries such as steel and cement.

“In my view, we will see virtually all the industries that are running at low capacity and without turning profits privatized,” he predicted. “We are talking about industries like steel and cement, but also other sectors like hotels or agricultural land.”

Ferrer affirmed that state companies currently under strategic alliances, such as sugar mills or Ferrominera Orinoco, an iron-ore complex presently managed by India’s Jindal Steel, could continue under similar deals as opposed to being sold outright.

“Where investors have mostly expressed an interest is in extractive industries: oil and mining,” he added. Ferrer additionally claimed that US “strategic and business interests” are likely to pursue control over Venezuelan critical mineral reserves, which are not presently certified.

Rodríguez had unveiled the commission to evaluate state assets in an April 9 presidential address. The acting leader also set in motion efforts to reform Venezuela’s labor, tax, and pension legislation. The Venezuelan National Assembly has recently approved pro-business overhauls of the country’s hydrocarbon and mining laws.

Caracas reestablished dealings with the International Monetary Fund (IMF) and the World Bank on April 16. On Wednesday, Rodríguez disclosed a conversation with IMF Managing Director Kristalina Georgieva and stated Caracas’ priority in unblocking around US $5 billion worth of Special Drawing Rights to improve public services such as electricity and water supply.

For her part, Georgieva acknowledged a “very valuable and productive call” and that the next steps include IMF “policy advice and capacity development.”

Venezuelan leaders have vowed that there are no plans to incur IMF debt. However, the Caribbean nation could soon face pressure from creditors looking to collect on a massive external debt, with unpaid loans, defaulted bonds, and international arbitration awards totaling as much as $170 billion with accrued interest.

On April 16, the so-called Venezuelan Creditor Committee held talks with US officials amid efforts to secure a license to engage in debt negotiations with Caracas. The committee includes Fidelity Management & Research Company LLC, Morgan Stanley Investment Management, Greylock Capital Management, and others.

Since the January 3 US military strikes and kidnapping of Venezuelan President Nicolás Maduro, the Trump administration has seized control of Venezuelan oil revenues while issuing licenses to grant Western corporations favorable access to the Caribbean nation’s energy and mining sectors.

Edited by Lucas Koerner in Fusagasugá, Colombia.

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