Magazine article Risk Management

Terrorism Legislation Increases Potential Corporate Liability

Magazine article Risk Management

Terrorism Legislation Increases Potential Corporate Liability

Article excerpt

In addition to the increased possibility of prosecution for human rights violations, new legislation may also open companies and executives to lawsuits for facilitating terrorist acts in the United States.

On Sept. 28, Congress backed proposed legislation that will allow U.S. citizens to bring civil claims against individuals, countries and entities, including companies, that have directly or indirectly supported terrorism on U.S. soil.

According to the Justice Against Sponsors of Terrorism Act (JASTA), "persons, entities or countries that knowingly or recklessly contribute material support or resources, directly or indirectly, to persons or organizations that pose a significant risk of committing acts of terrorism that threaten the security of nationals of the United States...should reasonably anticipate being brought to court in the United States to answer for such activities." The act also establishes that U.S. citizens can bring civil claims against such entities.

The legislation will permit courts to dismiss a claim of foreign sovereign immunity when an act of terrorism occurs inside U.S. borders, according to the terms of the bill.

It is not clear how widely U. …

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