Plaintiffs, Malian nationals who alleged they were trafficked as children and forced to labor on cocoa farms in Côte d'Ivoire, brought suit under the ATS against two U.S. corporations, Nestlé USA and Cargill. They claimed the companies knowingly aided and abetted child slavery by maintaining exclusive supplier relationships with Ivorian farms, providing those farms with financial resources, training, and equipment, and exerting economic leverage to maintain a steady supply of cheap cocoa while allegedly knowing (or recklessly disregarding) that child labor and forced labor were pervasive in the supply chain. Plaintiffs further alleged that key corporate decisions—such as financing, contracting, oversight, and supply-chain governance—were made from the companies' U.S. headquarters, and that these domestic decisions perpetuated and facilitated the abuses abroad. The district court dismissed, holding in part that corporations could not be sued under the ATS. The Ninth Circuit reversed in relevant part, concluding that domestic corporations can be defendants under the ATS, that aiding-and-abetting liability can be cognizable, and that plaintiffs sufficiently alleged domestic conduct. The Supreme Court granted certiorari to address the scope of ATS liability in light of the presumption against extraterritoriality and other limits recognized in Sosa, Kiobel, and Jesner.
Does the Alien Tort Statute permit claims against U.S. corporations for aiding and abetting child slavery abroad when the pleaded domestic conduct consists largely of general corporate activity (e.g., decisionmaking and oversight) in the United States?
The Alien Tort Statute does not apply extraterritorially absent a clear indication from Congress. Under the presumption against extraterritoriality (as articulated in RJR Nabisco), courts ask first whether the statute provides a clear indication of extraterritorial application; if not, they determine whether the case involves a permissible domestic application by looking to the statute's focus and where the relevant conduct occurred. For ATS claims, the relevant conduct is the conduct that constitutes the alleged violation of an international law norm. Allegations of general corporate activity in the United States—such as routine decisionmaking or oversight—are insufficient by themselves to establish a domestic application of the ATS when the underlying wrongful conduct occurs abroad.
No. Plaintiffs' claims seek an impermissible extraterritorial application of the ATS because nearly all relevant conduct occurred in Côte d'Ivoire, and allegations of general corporate activity in the United States are insufficient to establish a domestic application. The Supreme Court reversed the Ninth Circuit and remanded. The Court did not decide whether domestic corporations can be sued under the ATS or whether aiding-and-abetting liability is cognizable under the ATS.
1) Presumption against extraterritoriality: The Court, per Justice Thomas, reaffirmed that the ATS contains no clear indication of extraterritorial application. Following RJR Nabisco's two-step framework, the Court proceeded to determine whether plaintiffs alleged a domestic application by identifying the statute's focus and the location of the relevant conduct. 2) Relevant conduct occurred abroad: The ATS provides jurisdiction for a narrow set of judge-made causes of action for violations of specific, universal, and obligatory norms of international law (Sosa). The focus in this context is the conduct constituting the alleged international law violation. Plaintiffs alleged forced labor, child slavery, and trafficking on Ivorian farms—conduct occurring outside the United States. While plaintiffs pointed to corporate decisions, financing choices, supplier policies, and oversight made in U.S. headquarters, the Court concluded these were archetypal forms of general corporate activity that cannot transform fundamentally foreign misconduct into a domestic ATS claim. Accepting such allegations would effectively abrogate Kiobel's limit by allowing almost any multinational to be haled into U.S. courts based on routine stateside corporate operations. 3) Aiding-and-abetting and corporate liability not resolved: The Court assumed without deciding that aiding-and-abetting liability may be available under the ATS and expressly declined to resolve whether domestic corporations can be ATS defendants (Jesner had already foreclosed suits against foreign corporations). Because plaintiffs failed at the extraterritoriality step, none of these questions was necessary to the judgment. 4) Concurring and dissenting views: Several separate opinions debated the methodology and implications. Justice Gorsuch (joined in part by Justice Alito) emphasized RJR's two-step framework and criticized Kiobel's "touch and concern" gloss, suggesting that precise application of RJR suffices. Justice Sotomayor (joined by Justices Breyer and Kagan) agreed that general corporate presence is insufficient but argued that purposeful domestic conduct that substantially assists a violation abroad could suffice, and she would have allowed plaintiffs to replead to allege such conduct. Justice Alito would have permitted the claims to proceed past the pleading stage if plaintiffs could plausibly allege domestic aiding-and-abetting acts. The controlling point, however, is that plaintiffs' current allegations did not clear the domestic-conduct threshold.
Nestlé significantly narrows ATS human rights litigation by clarifying that plaintiffs must plead concrete, relevant domestic conduct—not merely corporate headquarters decisions or oversight—to overcome the presumption against extraterritoriality. It underscores the Court's separation-of-powers concerns with expanding judge-made ATS causes of action and channels policy choices about corporate accountability toward Congress. For law students, the case is a capstone in the ATS trilogy (Sosa, Kiobel, Jesner), operationalizing RJR Nabisco's extraterritoriality framework in the ATS context and illustrating how pleading domestic conduct is now the central battleground in transnational tort cases.
Nestlé USA, Inc. v. Doe reinforces the presumption against extraterritoriality as a robust constraint on ATS litigation. By holding that allegations of general corporate activity in the United States cannot anchor claims for human rights abuses occurring abroad, the Court sharply limits the ATS as a vehicle for transnational tort suits against multinational corporations.