The Racketeer Influenced and Corrupt Organizations Act (RICO) is directed at racketeering activitydefined to encompass acts indictable

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The Racketeer Influenced and Corrupt Organizations Act (RICO) is directed at ‘‘racketeering activity’’—defined to encompass acts indictable under specific Federal criminal provisions, including mail and wire fraud. Petitioner corporation, Sedima, which had entered into a joint business venture with respondent company, Imrex, and which believed that it was being cheated by alleged overbilling, filed suit in District Court, asserting RICO claims against the respondent company and two of its officers (also respondents) based on predicate acts of mail and wire fraud. The court dismissed the RICO counts for failure to state a claim. The Court of Appeals affirmed, holding that under RICO a plaintiff must allege a ‘‘racketeering injury’’—an injury ‘‘caused by an activity which RICO was designed to deter,’’ not just an injury occurring as a result of the predicate acts themselves. Sedima appealed. Decision?

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Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

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