I heard about this on NPR this morning, and couldn't find a diary discussing it directly.
Ahmed Abu-Ali, a US citizen, was arrested in Saudi Arabia while he was taking exams (not sure which, sorry). It is alleged that he was arrested at the behest of the USA, as a suspected terrorist. Since then, he has been questioned by the FBI and there is substantial evidence that he has been tortured, including having his fingernails ripped out.
Amnesty press release
Continued below the break.
Since the US was complicit in his arrest and he's a US citizen, his family has sued in US courts for his release. The US government's defense is that the courts have no jurisdiction over foreign countries. However, in a significant judgement, the judge recently (yesterday, maybe, but I can't find a reference) ruled that this defence was far too sweeping, as the government could then have any citizen arrested by a foreign country and held without legal rights, a breach of the constitution. However, his ruling was that the DOJ (?) needs to turn over relevant papers (it doesn't deny the allegations of US involvement in arrest/interrogation). The DOJ has been stalling, asking for delays. However, it has now, apparently, asked Saudi Arabia to indict him or return him to the US.
Some more info on the case
So, it's not just foreigners being "rendered" to other countries and their torture being outsourced - it seems to be happening to US citizens too.
Sorry for the uncertainties - I was driving and didn't catch all the details. But, I felt that this gross abuse of rights was worthy of a diary. Hopefully it adds to all the great work being written by PlutoniumPage and SusanHu.