RICO Report

Join Troutman Pepper White Collar and Litigation Partner Cal Stein for a special podcast series, discussing the legal landscape surrounding the Racketeer Influenced and Corrupt Organizations Act (RICO). While often associated with organized crime or gang activity, RICO's reach actually covers much more than what many think of as traditional "racketeering." Criminal prosecutors and civil litigants commonly use RICO to bring cases against individuals and organizations engaging in more conventional business activity, often by claiming various types of fraud that violate broad federal statutes encompassing a myriad of conduct far more likely to be alleged against a businessperson than a mafia crime boss (e.g., mail fraud, wire fraud, computer fraud, bank fraud, among others). During this series, Cal discusses the history and various elements of RICO, including examining its predicate acts, interviewing RICO newsmakers, and analyzing RICO cases with other RICO practitioners.

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Second Circuit Decision Potentially Broadens RICO Proximate

Updated 3 months ago.

The Second Circuit Court of Appeals recently issued an opinion in Alix v. Mckinsey & Co. that may fundamentally broaden the proximate cause element of claims brought under the Racketeer Influenced and Corrupt Organizations Act (RICO). RICO's proximate cause element requires a plaintiff to allege facts plausibly establishing a "direct relationship" between the claimed injury and the defendant's conduct in violation of RICO. By expanding its interpretation of this element, the Second Circuit may have made it easier for future plaintiffs to bring and plead civil RICO claims, particularly against their business competitors.

Join Troutman Pepper Partners Cal Stein and Stephen Rinehart for this installment of the RICO Report as they discuss the case (1:18); RICO claims (4:02); McKinsey's successful motion to dismiss the RICO claims at the district court level (5:37); the Second Circuit's appellate decision, including its analysis of intervening events (8:25); Alix's market share causation argument (10:39); and key lessons practitioners can take away from the decision and possibly apply to future RICO cases (18:24).

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