financetom
Business
financetom
/
Business
/
Apple, Tesla, other tech companies prevail in US child labor appeal
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Apple, Tesla, other tech companies prevail in US child labor appeal
Mar 5, 2024 9:40 AM

(Reuters) -A federal appeals court on Tuesday refused to hold five major technology companies liable over their alleged support for the use of child labor in cobalt mining operations in the Democratic Republic of the Congo.

In a 3-0 decision, the U.S. Court of Appeals for the District of Columbia ruled in favor of Google parent Alphabet, Apple ( AAPL ), Dell Technologies ( DELL ), Microsoft ( MSFT ) and Tesla, rejecting an appeal by former child miners and their representatives.

The plaintiffs accused the five companies of joining suppliers in a "forced labor" venture by purchasing cobalt, which is used to make lithium-ion batteries that are widely used in electronics. Nearly two-thirds of the world's cobalt comes from the DRC.

According to the complaint, the companies "deliberately obscured" their dependence on child labor, including many children pressured into work by hunger and extreme poverty, to ensure their growing need for the metal would be met.

The 16 plaintiffs included representatives of five children who were killed in cobalt mining operations.

But the appeals court said buying cobalt in the global supply chain did not amount to "participation in a venture" under a federal law protecting children and other victims of human trafficking and forced labor.

Circuit Judge Neomi Rao said the plaintiffs had legal standing to seek damages, but did not show the five companies had anything more than a buyer-seller relationship with suppliers, or had power to stop the use of child labor.

She added that many other parties are responsible for labor trafficking, including labor brokers, other cobalt consumers and the DRC government.

"Without more specific allegations, the question is whether the tech companies' purchasing an unspecified amount of cobalt from a supply chain originating in DRC mines plausibly demonstrates 'participation in a venture' with anyone engaged in forced labor in that supply chain," Rao wrote. "We hold that it does not."

A lawyer for the plaintiffs had no immediate comment. Google had no immediate comment. Apple ( AAPL ), Dell, Microsoft ( MSFT ), Tesla and their respective lawyers did not immediately respond to requests for comment.

Tuesday's decision upheld a November 2021 dismissal by U.S. District Judge Carl Nichols in Washington.

The cobalt suppliers included Eurasian Resources Group, Glencore, Umicore and Zhejiang Huayou Cobalt, court papers show. None was named as a defendant.

The case is Doe 1 et al v Apple Inc ( AAPL ) et al, D.C. Circuit Court of Appeals, No. 21-7135.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Update: Mastercard Reaches 'Agreement in Principle' in UK Overcharging Case
Update: Mastercard Reaches 'Agreement in Principle' in UK Overcharging Case
Dec 4, 2024
07:47 AM EST, 12/04/2024 (MT Newswires) -- (Updates to include a statement from Mastercard ( MA ) in the second and third paragraphs.) Mastercard ( MA ) has reached an agreement in principle to settle a UK class action lawsuit for 200 million British pounds ($253.4 million), multiple media outlets reported Wednesday. We are pleased to have reached an agreement...
Lululemon faces sluggish sales as upstart brands nip at its heels
Lululemon faces sluggish sales as upstart brands nip at its heels
Dec 4, 2024
By Savyata Mishra (Reuters) - Lululemon, facing its slowest quarterly growth in more than four years, will have to deal with Wall Street questions on whether it has made significant strides toward fast-tracking trendier styles to its stores to better compete with athleisure upstarts. Lululemon is likely to see revenue rise nearly 7% to $2.36 billion in the third quarter...
American Hotel Income Properties REIT Extends Revolving Credit Facility, Term Loans
American Hotel Income Properties REIT Extends Revolving Credit Facility, Term Loans
Dec 4, 2024
07:49 AM EST, 12/04/2024 (MT Newswires) -- American Hotel Income Properties REIT (HOT-UN.TO, HOT-U.TO) overnight Tuesday said it was extending the maturity date for its revolving credit facility (RCF) and certain term loans to June 2025. In a statement the REIT said it had satisfied the conditions in the Sixth Amendment for the extension of the maturity date for the...
What's Going On With NIO Stock Today?
What's Going On With NIO Stock Today?
Dec 4, 2024
NIO Inc. ( NIO ) shares are trading higher in the premarket session on Wednesday. In November, NIO reportedly added 120 new fourth-generation battery swap stations, bringing the total number of stations to 2,741 by November 30, reported CnEV Post. Of these, 903 are located along highways, enhancing the convenience of long-distance travel for NIO electric vehicle owners. The new...
Copyright 2023-2026 - www.financetom.com All Rights Reserved