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January 14, 2014 AT 7:32 AM
The U.S. Supreme Court ruled on Tuesday that Daimler AG cannot be sued in California over allegations that a subsidiary violated the human rights of workers at a plant in Argentina in the 1970s. The legal question was whether a U.S. court has the authority to hear a case against a foreign corporation "solely on the fact that an indirect corporate subsidiary performs services on behalf of the defendant" in the state where the lawsuit was filed, which in this instance was California.