Forum

U.S. Supreme Court

Case Status

Decided

Docket Number

Term

Cert. Denied

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Questions Presented

1. Whether contract-expectation damages are a permissible remedy in a civil RICO action based on alleged fraud, and if so, whether such damages are available even where any expectation was created only by the alleged fraudulent conduct.

2. Whether but-for causation in a civil RICO class action may be satisfied by a class-wide presumption of reliance on alleged fraudulent conduct in the absenceof any individualized proof that any member of the class actually relied on that conduct.

3. Whether a nationwide class asserting state-law claims under multiple state laws may be certified under Rule 23(b)(3) of the Federal Rules of Civil Procedure in the absence of any showing that the state laws at issue are uniformly interpreted and applied.

Case Updates

Cert. petition denied

April 28, 2014

U.S. Chamber urges Supreme Court to clarify Second Circuit decision in RICO class action

February 24, 2014

In the coalition brief, the U.S. Chamber asks the Supreme Court to review the Second Circuit’s decision certifying a RICO class action lawsuit. The brief argues that Supreme Court should grant review to address the availability of a class-wide “presumption” or “inference” of reliance outside the securities context. The Chamber argues that since RICO claims carry the threat of treble damages, the pressure to settle those cases upon certification is increased. In making it easier to certify sweeping RICO classes and expanding the damages plaintiffs can seek, the Second Circuit’s decision provides overwhelming incentives to bring such actions and to extract nuisance settlements.

The Chamber filed the brief jointly with DRI-The Voice of the Defense Bar.

Jonathan F. Cohn, David R. Carpenter and Wen W. Shen of Sidley Austin, LLP represented the U.S. Chamber as co-counsel to the National Chamber Litigation Center.

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