EIG Energy Fund XIV, L.P. v. Petroleo Brasileiro, S.A.

American investors invest $221 mil into Brazilian oil project projected to produce $90 bil revenue. Yikes! Massive corruption comes to light; the $221 mil is lost. Can an American investment fund (which directed money through Luxembourg corporations for tax purposes) sue Brazil’s state-run oil company in U.S. court? Sure thing, says the D.C. Circuit. Dissent: The losses, borne “by a Luxembourg entity, owned by another Luxembourg entity, in turn owned by United States entities,” don’t have the “direct effect” on the U.S. necessary to give us jurisdiction.

Tags: 2018, D.C. Circuit, International Law, Jurisdiction

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