Full U.S. Court of Appeals for the Second Circuit Declines in Divided Vote to Rehear Groundbreaking Decision on Extraterritorial Application of RICO Statute

The World in U.S. Courts: Summer 2015 - Racketeer Influenced and Corrupt Organizations Act (RICO)

European Community v. RJR Nabisco, Inc., U.S. Court of Appeals for the Second Circuit, April 13, 2015

In the Summer 2014 Issue of The World in U.S. Courts, we reported on a decision by a panel of the U.S. Court of Appeals for the Second Circuit in New York establishing a third test for determining whether the RICO statute applied to conduct occurring at least partially outside the U.S. In this opinion, the full Court of Appeals decides, by an 8-to-5 vote and with four dissenting opinions, not to rehear the case en banc. Because of the significance of the original panel's decision, the split among the circuits as to the correct rule, and the multiple views even within the influential Second Circuit, a reasonable chance exists that the matter will ultimately be resolved by the U.S. Supreme Court.

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