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US Supreme Court to Hear Case Alleging Cisco Aided China’s Persecution of Falun Gong

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The U.S. Supreme Court on Friday agreed to hear an appeal by Cisco Systems, a case that could narrow the scope of a centuries-old U.S. law used to hold companies liable for human rights abuses committed abroad.

Cisco is challenging a 2023 ruling that revived a lawsuit first filed in 2011, which accuses the California-based technology firm of knowingly developing surveillance technology that enabled the Chinese government to monitor, detain and persecute members of the Falun Gong. The appeal is supported by the administration of U.S. President Donald Trump.

The lawsuit is based primarily on the Alien Tort Statute (ATS), a 1789 law that allows foreign plaintiffs to bring civil cases in U.S. courts for violations of international law. Long dormant, the statute has been increasingly tested in recent decades. Cisco is urging the Supreme Court to further limit its reach, arguing that the claims are unfounded and that the company sold technology to China that was legal under U.S. trade policy.

Plaintiffs also allege violations of the Torture Victim Protection Act, claiming Cisco executives “aided and abetted” acts of torture and persecution by Chinese officials. They argue that Cisco helped design and implement the so-called “Golden Shield,” an internet surveillance system used by Chinese authorities to target Falun Gong practitioners and other dissidents.

Falun Gong, founded in China in 1992, combines meditation and moral teachings drawn from Buddhism and Taoism. The Chinese Communist Party banned the movement in 1999 after mass protests in Beijing, labeling it an “evil cult,” and has since detained and imprisoned many of its members. Some plaintiffs allege they were subjected to beatings, electric shocks, sleep deprivation and force-feeding while in custody.

The case was initially dismissed in 2014, with a judge ruling that the alleged conduct lacked a sufficient connection to the United States. However, in 2023, the 9th U.S. Circuit Court of Appeals ruled that plaintiffs had plausibly alleged Cisco provided “essential technical assistance” with awareness that serious human rights violations were likely.

In agreeing to hear the appeal, the Supreme Court said it will focus on whether claims of aiding and abetting can proceed under the Alien Tort Statute and the Torture Victim Protection Act. The court is expected to hear arguments and issue a decision by the end of June.

A Cisco spokesperson welcomed the court’s decision, saying the company looks forward to presenting its case. Lawyers for the

plaintiffs did not immediately respond to requests for comment.

Cisco unveils AI-focused chip to link massive data centers

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Cisco Systems has introduced a new networking chip, the P200, designed to connect large-scale AI data centers across vast distances. The technology, which will power a new generation of high-capacity routers, has already attracted major clients including Microsoft Azure and Alibaba Cloud, the company announced Wednesday.

The P200 aims to solve a growing challenge in artificial intelligence — connecting geographically distant data centers so they can operate as one massive computing system. “AI training jobs are now so large, they require multiple data centers working together — even a thousand miles apart,” said Martin Lund, Cisco’s executive vice president of common hardware.

The chip consolidates what previously required 92 separate components into one, allowing routers to use 65% less power. Cisco said the innovation helps AI firms manage rising energy demands as data centers spread to regions such as Texas and Louisiana, where electricity is more abundant.

The P200 will compete directly with Broadcom’s networking chips, offering faster data synchronization and more efficient buffering technology, a crucial feature for ensuring AI workloads remain stable across distributed systems.

Industry leaders including Microsoft’s Dave Maltz praised the move, saying the chip provides “faster networks with more buffering to absorb bursts of data,” critical for scaling AI operations. Cisco did not disclose investment costs or revenue expectations but said the chip represents a major leap in AI infrastructure efficiency.

US DOJ Sues to Block Hewlett Packard Enterprise’s $14 Billion Juniper Deal

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The U.S. Department of Justice (DOJ) has filed a lawsuit to block Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks, arguing that the deal would reduce competition in the networking equipment market. According to the complaint, the merger would result in just two companies—HPE and Cisco Systems—controlling more than 70% of the U.S. market for networking gear.

Shares of both HPE and Juniper Networks fell by about 2% following the announcement. This antitrust lawsuit is the first to be filed under the current administration.

In response, the companies argue that the deal will not harm competition, claiming that it would bring together two complementary networking solutions that can better compete with established global players. They also pointed to Juniper’s innovations, which have driven HPE to lower its prices and invest more in innovation.

The DOJ’s complaint specifically noted that Juniper’s competitive pressures have forced HPE to offer discounts and develop new features to maintain market relevance. The companies are prepared to defend the merger in court, with pretrial and trial proceedings expected to take place over the next eight months, before the deal’s walk-away date in October.

While the DOJ moves forward with its challenge, both the UK’s Competition and Markets Authority and the European Union have already approved the acquisition.