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Business
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Big Pharma's Alleged Terror Bribes Face a High-Stakes Supreme Court Showdown

By
Distilled Post Editorial Team

A single sentence in the US Supreme Court's order list on Monday, 9 November, has reopened a legal dispute with potentially significant implications for the pharmaceutical and medical-device industries. The justices invited the Solicitor General to file a brief setting out the views of the United States in case 26-245. It is the second time the government has been asked to intervene in the same dispute, following an identical request in October 2023. The response then helped determine the next stage of the proceedings. Now, as the case returns to the Court, the question is whether subsidiaries of AstraZeneca, Roche, GE HealthCare, Johnson & Johnson, Pfizer and Viatris can face liability for allegedly helping finance an Iraqi militia through corrupt medical supply contracts. The NHS is nowhere in the proceedings. Its buyers, however, have reason to take notice.

The plaintiffs, American military personnel, civilians and relatives of victims, allege that the companies paid millions of dollars in cash and medical supplies as bribes to Jaysh al-Mahdi, a militia that had taken control of Iraq's Ministry of Health. They claim the arrangements secured lucrative procurement contracts while providing the group with money and goods that could be sold on the black market to finance attacks against Americans. The companies dispute the allegations and argue that they conducted business with the ministry at the encouragement of the US government. Their defence centres on the Anti-Terrorism Act's requirements for liability, including whether businesses must have intended to assist terrorist attacks and whether their conduct must be closely connected to particular acts of violence.

The legal journey has been lengthy. A district judge threw out the lawsuit in 2020, but the US Court of Appeals for the District of Columbia Circuit reinstated the claims in January 2022. In June 2024, the Supreme Court vacated that decision and returned the case to the appeals court for reconsideration following its ruling in Twitter v Taamneh, which clarified the requirements for aiding-and-abetting liability under the Anti-Terrorism Act. The appeals court reconsidered the evidence and, on 23 January 2026, again allowed the claims to proceed. It concluded that the complaint sufficiently alleged that the companies had repeatedly structured transactions in unusual and unlawful ways that facilitated the militia's activities. The ruling did not establish that the companies were liable, but it meant the allegations could continue through the courts.

That distinction matters. The plaintiffs do not need to demonstrate at this stage that individual payments or shipments directly financed particular attacks. The appeals court considered whether the alleged pattern of assistance, the companies' knowledge and the connection to the militia's violence were sufficient to establish a claim. Both sides now argue that the Supreme Court's reasoning in the Twitter case supports their position. The administration's latest brief could influence whether the justices agree to examine the dispute again, although the Court remains free to refuse the appeal.

For British procurement officials, the more immediate concern lies in the conduct alleged. The argument is that a supplier can face legal exposure for dealing with a compromised public health authority, even without evidence that it knew about a particular attack. That possibility has implications for companies operating in fragile political environments, where government ministries may be vulnerable to corruption and public contracts can become a source of funding for groups outside the state. The Solicitor General's position will also carry weight because the previous intervention came under a different administration. The latest response will indicate how the Trump administration approaches corporate responsibility in reconstruction settings where American involvement encouraged commercial activity.

The UK's Procurement Act 2023 sets out a legal framework for addressing similar risks within public procurement. Its main provisions came into force on 24 February 2025, introducing revised exclusion grounds and a central debarment regime. Bribery offences under the Bribery Act 2010 are among the mandatory exclusion grounds where the relevant conviction requirements are met. The rules also extend to certain connected persons, including directors, parent companies and subsidiaries. Ministers can place qualifying suppliers on a debarment list, potentially preventing them from securing public contracts for up to five years. A civil claim in an American court, however, does not automatically activate these provisions. Nor does an unproven allegation amount to a conviction. The distinction is important, but the legislation gives contracting authorities a framework for examining supplier integrity beyond the immediate contracting entity.

That responsibility reaches NHS trusts and national procurement bodies. Their commercial teams must establish whether suppliers meet the relevant requirements and assess potential risks before awarding contracts. In practice, procurement departments operating under financial and staffing pressures may depend heavily on declarations supplied by companies themselves. The allegations in Iraq illustrate how difficult it can be to identify misconduct involving overseas intermediaries, local partners and public officials. They also raise questions about how thoroughly buyers investigate the organisations and individuals operating behind international supply arrangements.

The implications extend into the life sciences sector. Several defendants supply medicines and imaging equipment to NHS organisations, while AstraZeneca is headquartered in Cambridge. Ministers have spent the past year negotiating with pharmaceutical companies over pricing and investment amid pressure from the United States. The prospect of greater American litigation exposure adds another consideration to corporate decisions about where to locate manufacturing facilities, clinical trials and investment. A ruling widening liability could make suppliers more cautious about operating in politically unstable markets, including those supporting UK-funded healthcare programmes. A narrower interpretation would offer companies greater legal certainty while leaving much of the responsibility for policing supplier conduct to national regulators.

There are practical questions for British institutions. NHS boards and audit committees should examine how commercial directors assess supplier integrity, particularly where contracts involve overseas intermediaries. The Cabinet Office, which oversees the debarment regime, and the Serious Fraud Office, responsible for enforcing the Bribery Act, must be equipped to act when credible concerns come to light. The Foreign Office and organisations delivering British-funded health programmes overseas must also recognise the risks of working through ministries vulnerable to political capture. Suppliers, meanwhile, should expect buyers to ask more searching questions about their local partners and payment arrangements.

The Supreme Court could decline to hear the appeal or agree to consider the case and reach a narrower decision on the legal test for intent. Neither outcome would directly alter an NHS contract or rewrite British procurement law. Yet the dispute exposes a question that public buyers cannot afford to ignore: who is accountable when the machinery of healthcare procurement becomes a channel for corruption? Parliament has already given British contracting authorities powers to examine supplier conduct. Whether they have the resources, information and determination to use those powers effectively may prove more consequential for the NHS than the eventual decision in Washington.