Case:

Case construct: Some American hedge funds engage in a practice that makes them known as “vulture funds”. When countries are going through economic distress, vulture funds buy the sovereign debt of those countries from other investors. If those countries declare bankruptcy, vulture funds refuse to accept a restructuring of that debt (this is called a haircut) and sue in American courts to force the debtor country to pay back its debt.

Case statement: The US government should ban American courts from adjudicating foreign governments’ obligation to pay sovereign debt to American investors.