Question
Beginning in the fall of 2003, the stock price of YukosOil Company, the largest oil company in Russia,dropped precipitously in response to various measures taken
Beginning in the fall of 2003, the stock price of YukosOil Company, the largest oil company in Russia,dropped precipitously in response to various measures taken by the Russian Federation. In October2003, the Russian Federation arrested Yukos's president, Mikhail Khodorkovsky, and seized his equityholdings in the company. Soon thereafter, the RussianMinistry of Taxation charged Yukos with underpaying the previous years' taxes by approximately$27.5 billion and the Russian Federation confiscatedYukos' primary assets, sending the company into aneconomic tailspin.The shareholders brought suit in the United Statesfor the failure of Yukos to disclose its tax strategy as wellas the risk of that strategy. Yukos seeks to have the casedismissed because U.S. courts cannot decide issuesthat involve decisions by the Russian government. Whatshould the court do, and why?
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