A federal judge has dismissed five-year-old claims brought on behalf of the Republic of Iraq against more than 90 companies that participated in the oil-for-food program, which allowed Iraq to sell oil to the world in exchange for food and medicine for Iraqi citizens. The program was dismantled in 2003, amid claims of widespread corruption that were largely borne out by subsequent U.N. and U.S. investigations.
Southern District Judge Sidney Stein (See Profile) concluded on Feb. 6 in The Republic of Iraq v. ABB AB, 08 Civ. 5951, that Iraq doesn’t have standing to sue because it’s partly responsible for the wrongdoing alleged in the complaint. He also rejected Iraq’s bid to avail itself of the Racketeering Influenced and Corrupt Organizations Act and the Foreign Corrupt Practices Act. RICO doesn’t apply to extraterritorial conduct, Stein ruled, and the FCPA is not a private cause of action.
