In a noteworthy decision, the U.S. Court of Appeals for the Ninth Circuit recently determined that four Chinese state-controlled companies do not possess sovereign immunity in a case involving alleged economic espionage. The ruling has significant implications for foreign sovereign entities, as it sets a precedent in interpreting the reach of sovereign immunity under common law within the criminal context.
Legal experts, including attorneys from Cleary, are advising these entities to thoroughly evaluate their operations and affiliations with their parent states to determine whether they qualify for sovereign immunity. The Ninth Circuit’s decision underscores the necessity for foreign sovereign-controlled companies to reassess their legal strategies in light of evolving judicial interpretations.
For further insight into the decision and its potential repercussions, see the full narrative on the issue detailed in Law360.