The U.S. Supreme Court overturned a decision by the Court of Appeals for the Second Circuit that would have permitted private plaintiffs to sue for money damages under the Racketeer Influenced and Corrupt Organizations Act (RICO) for injuries allegedly suffered abroad. By clarifying that a private Rico plaintiff must be able to allege and prove a domestic injury, the decision in RJR Nabisco, Inc v. The European Community sharply reduces claims brought under RICO for overseas activity that has little or no connection to the United States.
The decision marks another victory for the Allied Educational Foundation and its partner, the Washington Legal Foundation, in the battle to prevent abuses of the American legal and court system. In this case, the plaintiffs’ bar had tried to transform RICO (a devise for fighting organized crime) into a tool for attacking the overseas conduct of American corporations. This is a profitable tool for the plaintiffs’ attorneys because civil RICO actions have a treble damage provision. This win has prevented an increase in the burden on the U.S. Federal Court system as well additional litigation costs for multi-national businesses which are then passed on to all consumers.
AEF is dedicated to maintaining the integrity of the judicial system and preventing its abuse. We welcome your support in this mission. To donate to our legal causes, please visit our donation form.