What is RICO?
In light of ongoing litigation between General Motors and Fiat Chrysler, Dinsmore partner Mark Carter wrote an article for Automotive News explaining the basics of RICO actions:
"Any person injured in his or her business or property by a pattern of racketeering activity may have standing to seek relief pursuant to the Organized Crime Control Act of 1970. The statute, more commonly known as the Racketeer Influenced and Corrupt Organizations Act, or RICO, contains provisions permitting prosecution by the U.S. Department of Justice and provisions permitting the pursuit of a civil action to recover damages by the victim or victims.
"RICO prohibits a 'person,' whether an individual, corporation or another entity recognized by law, from acquiring control of an enterprise through a pattern of racketeering activity, or from conducting the affairs of an enterprise through a pattern of racketeering activity.
"Typically, a plaintiff must prove that he or she has been injured by the defendant's direction of predicate acts to acquire control of an otherwise legitimate enterprise or injured by the defendant's conduct of the enterprise's affairs to accomplish his or her crimes. Relief is also available under RICO where defendants "conspire" to violate the act."
To read the full article, click here.
Link to article
- Universal Processes in El Salvador
- Corporate Law Update: New M&A Rules affect Minority Shareholders
- EU Upgrades BVI to Whitelist Status
- Frlekin v. Apple: Employees Must Be Compensated for Time Spent Undergoing Exit Searches
WSG Member: Please login to add your comment.