U.K. Blocks Bid to Get U.S. Company Documents in Fraud Probe (2)

KBR Inc. won a U.K. Supreme Court ruling that blocked British prosecutors from obtaining documents from the U.S. company in a stunning defeat for the Serious Fraud Office.

The judges said the SFO overstepped its powers when it asked KBR’s U.K. unit to hand over data held outside the country as part of a bribery and corruption probe. The court said the SFO should have relied on cooperation with foreign prosecutors to get the information.

The ruling is a setback for the SFO’s legal authority and could hinder future probes of foreign companies. The decision may extend to other agencies, ...