Law360 | June.22.2016
Orrick's Rob Reznick, Jim Stengel, David Goldstein and Kristina Pieper Trautmann authored an article in Law360 entitled "4 Takeaways from the High Court's New Rule on RICO's Reach." The article discusses the U.S. Supreme Court's reversal of a Second Circuit decision in RJR Nabisco Inc. v. European Community ruling that the federal Racketeer Influenced and Corrupt Organizations Act has limited extraterritorial application. Additionally, it found that even when it does, a private litigant must allege a domestic U.S. injury in order to state a claim. An excerpt from the article is included below.
Previously, a three-way circuit split had left the viability of RICO claims very much dependent upon the district in which they were brought — imposing the risk of inconsistent outcomes on RICO claims arising out of international activities. The court’s decision rejects all of the prevailing rulings on extraterritoriality and offers some new takes on the court’s prior jurisprudence in that area, as well as antitrust law.