US Firms Sued for Failing to Stop Chips From Being Used in Russian Weapons
A group of Ukrainian nationals on Dec. 10 accused Intel, Texas Instruments, Advanced Micro Devices (AMD) and Mouser Electronics of not doing enough to ensure the semiconductor parts they make don't end up in Russian or Iranian hands (Shumylo v. Texas Instruments, Tex. # 25-09714).
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Filing suit in a Texas state court, the individuals, represented by trial lawyer Mikal Watts, large U.S. law firm BakerHostetler and trial attorneys Charla Aldous and James Shaw, brought a slew of claims against the companies, including negligence, conspiracy to evade or violate export restrictions on Iran and Russia and wrongful death, among others. The plaintiffs represented three minors who were killed in April from weapons that allegedly used the companies' products in a strike at a playground in Kryvyi Rih, Ukraine.
Among the claims made against the four companies, the Ukrainian nationals accused the manufacturers of negligence and gross negligence, both of which require the plaintiffs to prove that the tech companies had a duty of care owed to the plaintiffs. The Ukrainian nationals argued that such a duty existed due to the companies' "common-law duty of care under Texas law to Ukrainians," and due to longstanding U.S. policy on Ukraine, federal export controls and sanctions laws and Texas state policy.
The complaint emphasized that the U.S. has a "longstanding policy and commitment to protect Ukraine" that ranges from the U.S. government's vow to protect Ukraine in exchange for its nuclear weapons to U.S. sanctions and export controls on Iran and Russia. The companies also owe a "common-law duty to not facilitate mass atrocities, and to not create a foreseeable risk of civil injury and death by supplying materials to regimes known for attacking civilians, such as Russia," the complaint said.
As manufacturers of "dangerous instrumentalities," the four companies knew or should have known that diversion of their semiconductor parts to Russia posed a "foreseeable harm" the components would be used to arm the Russian military, the Ukrainian nationals argued.
As such, the companies' duty to the Ukrainian people required the companies to establish "adequate compliance protocols" to ensure their goods weren't used to "facilitate unlawful military attacks on civilians," the complaint said. The Ukrainian nationals highlighted that, by 2022, a “comprehensive framework of treaties, U.S. laws, and foreign policy measures categorically prohibited the export or diversion of microprocessors and related technologies to Iran, Russia, China, or any intermediary acting on their behalf.”
This duty of care was breached through the sale of semiconductor components to arms dealers who supplied Russia with critical weapons parts to use against Ukrainian civilians, the complaint said.
Specifically, the complaint highlighted the pivotal role the four companies' components play in the Shahed-131 and Shahed-136 drones, which are "loitering munitions supplied by Iran." These pilotless, inexpensive drones are launched in swarms to overwhelm Ukrainian air defenses, providing cover for Russian missile strikes, the Ukrainian nationals said.
Citing articles from CNBC and independent Russian publication Novaya Gazeta, the complaint said forensic inspections of debris from Russia's weapons systems, including the Shahed-131 and Shahed-136 drones, Kalibr cruise missiles and Iskander ballistic missiles, reveal the use of microchips made by Texas Instruments, AMD and Intel, the brief said. The presence of these companies' components "demonstrates that these components entered prohibited channels."
There's "no plausible scenario in which these major manufacturers were unaware of the substantial risk that their products would be diverted for use in unsanctioned military applications," the Ukrainian nationals said. "In fact, they had been repeatedly notified that their components were found in weapons deployed in Ukraine." The U.S. government has repeatedly told the companies about the risk their products were being diverted and the fact that the products were actually being diverted, the complaint said, noting that Texas Instruments itself made 36 shipments directly to Russia in early 2022.
In addition to their claims of negligence, gross negligence and negligence per se, which considers a party negligent as a matter of law if they have violated a statute or regulation without an excuse, the Ukrainian nationals accused the companies of assisting and encouraging in tortious conduct, fraudulent concealment by nondisclosure, joint enterprise, wrongful death and survival.
An Intel spokesperson said the company "does not conduct business in Russia and promptly suspended all shipments to customers in both Russia and Belarus following the outbreak of war. We operate in strict accordance with export laws, sanctions and regulations in the U.S. and every market in which we operate, and we hold our suppliers, customers, and distributors accountable to these same standards."
Spokespeople for Texas Instruments, AMD and Mouser Electronics didn't immediately respond to requests for comment.