A recent appeals court decision could end corporate liability under the Alien Tort Claims Act for charges of human rights violations abroad.

The Second Circuit Court of Appeals ruled that companies can’t be held liable in the United States under the Act, also called the Alien Tort Statute, for violations of international law in foreign countries. The decision effectively closes the door on the bulk of ATS litigation, at least for now.

Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...