Terrorism Suit Against Oil Cos. Tossed

Law360, New York (April 6, 2010, 7:23 PM EDT) -- A federal judge has dismissed a lawsuit accusing El Paso Corp., NuCoastal Corp. and Bayoil USA Inc. of funding terrorism by purchasing Iraqi oil in violation of the United Nations Oil-for-Food program.

Judge Lee H. Rosenthal of the U.S. District Court for the Southern District of Texas on Wednesday dismissed the foreign plaintiffs' Alien Tort Statute and all plaintiffs' Torture Victim Protection Act claims with prejudice, but dismissed the American plaintiffs' Antiterrorism Act claims without prejudice.

The plaintiffs allege that the oil companies purchased oil from...
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