Questions Presented
Did the Court of Appeals for the Second Circuit err when it held that civil RICO plaintiffs alleging mail and wire fraud as predicate acts must establish "reasonable reliance" under 18 U.S.C. § 1964(c)?
Case Updates
Outcome
November 15, 2005
After NCLC filed its brief, the petitioner withdrew its appeal because retrial of the underlying claims had undermined the claims raised in the petition. The petition’s withdrawal leaves the Second Circuit’s favorable rule intact.
NCLC urges Supreme Court to uphold reasonable reliance requirement under RICO
October 31, 2005
In this case, the Supreme Court granted review to consider whether, in supporting the predicate claims of mail and wire fraud under the Racketeering Influenced and Corrupt Organizations Act, plaintiffs are required to demonstrate that they had reasonably relied on any alleged misrepresentations. In its amicus brief on the merits, NCLC argued that plaintiffs must do so. Otherwise the prospect of treble damages and attorneys’ fees would attract challenges by litigants to otherwise unimportant misstatements.