Partner in ‘Bloomberg’ on Liability of Financial Institutions to Victims of Terrorist Attacks
BCLP Partner Andrey Spektor was quoted April 12 by Bloomberg concerning the significance of a case that may be taken up by the Supreme Court addressing the liability of financial institutions to victims of terrorist attacks. The high court could decide as early as May whether to hear Strauss v. Credit Lyonnais and Weiss v. Westminster Bank in what would be its first test of the 2016 Justice Against Sponsors of Terrors Act (JASTA). Most lawyers for both terror victims and companies agree that this could be a significant development, particularly in the Second Circuit, where most of these cases have been litigated. “If the Supreme Court grants cert, it may be a signal that at least four justices don’t like the way the case law has developed in that circuit,” said Andrey. “Any serious global business should already be checking to see if their customers have been designated as terrorist organizations,” Andrey said. “The fight here is over how much further they have to go.” Andrey predicted that if banks are opened to liability even after doing diligence and getting a green light from authorities, “then some institutions may choose to simply de-risk and exit certain markets.”
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