Rewards of RICO

Originally published by Barry Barnett.

Winning a claim under the Racketeer Influenced and Corrupt Organizations Act of 1970 allows you to recover three times your actual damages plus reasonable attorneys’ fees.

While that may sound like a plaintiff’s dream, the harshness of the RICO remedy and the statute’s latitudinarian scope provoke judicial skepticism about almost any RICO claim.

A recent Third Circuit ruling, which upheld a RICO complaint against a drug maker for false marketing of a blockbuster treatment for Type II diabetes, highlights the potential rewards of bringing a RICO case in spite of courts’ reluctance to let them advance.

My next post, on November 9, will examine In re Avandia Marketing, Sales Practices & Product Liability Litigation, No. 14-1948 (3d Cir. Oct. 26, 2015), and explain why it bodes well for RICO claims that allege a kind of fraud-on-the-market theory of product price inflation.

I invite you to subscribe now so you can read the post when it comes out this coming Monday.

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