United States v. LightRay Capital, LLC, No. 20-20471 (5th Cir. 2021)Annotate this Case
This case arose from an alleged international conspiracy to secure lucrative oil and gas contracts in Nigeria in exchange for bribes involving real estate, furniture, artwork, and other gifts. LightRay, the sole shareholder of the corporate owner of the yacht, M/Y Galactica Star, appeals the district court's 2018 order striking its claims and dismissing it for lack of standing. Enron Nigeria, a judgment creditor of the Federal Republic of Nigeria, appeals the district court's 2020 order granting a consent motion that resulted in the forfeiture of the yacht.
The Fifth Circuit affirmed the district court's ruling with respect to LightRay's appeal and dismissed Enron Nigeria's appeal for lack of jurisdiction. The court concluded that the district court did not abuse its discretion in determining that LightRay deliberately withdrew its claim against the yacht and waived its argument that it did so under duress. Furthermore, the district court did not err in dismissing LightRay from the proceedings for lack of standing with respect to the Remaining Assets. The court also concluded that Nigeria's Verified Claim was at all times immune from attachment and execution under the Foreign Sovereign Immunities Act. In this case, Nigeria did not waive its sovereign immunity by encouraging the United States Government to sell the Galactica Star.