Supreme Court Says U.S. Courts Cannot Hear Claims Brought by Foreign Victims of Cartels

On June 14, 2005, the United States Supreme Court held unanimously that foreign victims of a cartel cannot sue the cartel members in U.S. courts for damages caused by transactions that occurred abroad. The Court effectively reversed the holdings of two courts of appeals that ruled in favor of such cases.

The case, Hoffmann-LaRoche v. Empagran, was just the latest chapter in the long-running litigation involving the vitamins industry. The series of cases began when the Justice Department announced plea agreements with vitamin manufacturers, including the largest criminal fine ever assessed in the United States. As a result of those guilty pleas, American purchasers of vitamins won large settlements and damage awards from the members of the cartel.

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