Gibson Dunn's Lee Dunst and Brian Lutz argue that global companies still need to be wary of the US' controversial Alien Tort Claims Act

In recent years, non-US plaintiffs have increasingly turned to American courts – and a rarely used statute called the Alien Tort Claims Act (ATCA) – in an attempt to hold multinational corporations liable for their alleged responsibility for conduct committed outside the US by others, including genocide, torture, war crimes and other human rights abuses.

Recent US court decisions, including an important ruling by a federal appellate court in New York, have signalled what may be a sharp restriction on the ability of plaintiffs to stretch the ATCA to cover alleged violations of international law by corporate defendants.