Supreme court upholds apartheid-era lawsuit against U.S. and foreign companies

[NNN0LHI]

http://money.cnn.com/2008/05/12/news/international/apartheid_lawsuit/?postversion=2008051211

Four members of the court recused for apparent conflicts of interest.

May 12, 2008: 11:14 AM EDT

WASHINGTON (CNN) -- The Supreme Court - apparently handcuffed by possible conflicts of interest - has allowed a multibillion-dollar federal lawsuit from South African blacks and others to proceed. The suit claims U.S. and foreign companies should be held liable for helping the former white-led apartheid government.

Four members of the high court were forced to remove themselves from consideration of the cases. Although no reason was given for their recusal, financial disclosure reports show Chief Justice John Roberts, along with Justices Stephen Breyer and Samuel Alito, own stock in several of the companies being sued. Justice Anthony Kennedy's son Gregory is a top manager in investment bank Credit Suisse.

The justices in a brief order Monday said that "because the court lacks a quorum," they let stand a lower court ruling allowing the class-action lawsuit to go forward.

Under federal rules, at least six justices must hear a case that is accepted for review. With four of the nine recused, the high court had no choice but to uphold the lower court ruling.

[BayouBengal07]

1. My International Law professor this semester

was a part of a lawsuit against South Africa over suits against South African companies. I think it was something about mining companies. I wonder if this is an offshoot of that case.