In RJR Nabisco, Inc. v. European Community, the US Supreme Court not only limited the conduct
outside the United States that might be subject to the Racketeer Influenced and Corrupt
Organizations Act (“RICO”) statute in both criminal and civil cases, but placed even stricter limits
on the extraterritorial reach of civil damage claims under RICO. The decision is important
because RICO’s treble damage and fee-shifting provisions have attracted non-US plaintiffs
seeking to magnify the value and threat of US commercial litigation. The decision will significantly
limit the ability of non-US plaintiffs to use RICO to reach non-US claims, will further limit the reach
of civil damage claims arising under all other federal laws, and is also likely to influence how US
states interpret the reach of state laws to non-US conduct.
Read the full Alert. |