RICO’S Extraterritorial reach and lessons learned in RJR NABISCO, INC. v. EUROPEAN COMMUNITY

RJR NABISCO, INC.  ET AL v. EUROPEAN COMMUNITY ET AL.[i]

RICO’S Extraterritorial reach and lessons learned? 

By Ioannis P. Sipsas, Esq., Principal of SIPSAS PC

Earlier this year, the Supreme Court reviewed the RICO Act in the context on damages claims occurred in the Europe. On June 20, 2016, the Court ruled that a RICO lawsuit commenced by a private plaintiff, like the European Union (“EU”), must allege and prove damages occurred within the United States. RICO’s reach does not extend to activities conducted exclusively outside our borders.

Previously, the European Union had stipulated to waive any damages occurring in the United States and the final and practical result was that EU did not prevail because the EU’s claims rest entirely on injury alleged abroad.

RJR Nabisco v. European Community case was commenced in 2000 at the Eastern District Court of New York.It has been almost a fifteen (15) years journey of complex litigation concluding that RICO’s extraterritorial reach for private plaintiff is not available.

[i] https://www.supremecourt.gov/opinions/15pdf/15-138_5866.pdf.

 

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