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[White & Case] Further Limiting the Extraterritorial Reach of US Law, the US Supreme Court Limits the Use of the RICO Statute in RJR Nabisco v. European Community

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작성일16-07-11 12:36

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Client Alert | Commercial Litigation

Further Limiting the Extraterritorial Reach 

of US Law, the US Supreme Court Limits

the Use of the RICO Statute in RJR Nabisco

v. European Community

 

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July 2016

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Authors: Owen Pell, David Hille, Andrew Hammond

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.

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