Plain-English summary
Court rules civil RICO covers business or property losses even when those losses stem from personal injuries
The Supreme Court held that the civil Racketeer Influenced and Corrupt Organizations Act (RICO) allows a plaintiff to recover treble damages for business or property losses even if those losses were caused by personal injury. The Court affirmed the Second Circuit’s judgment and remanded the case.
Why this matters
The ruling clarifies who can sue under civil RICO and broadens the scope of recoverable economic harms. Plaintiffs whose businesses or property suffer financial losses as a consequence of a person’s injury can bring RICO claims seeking treble damages, potentially increasing liability exposure for defendants in a wide range of fraud, injury, or wrongdoing cases.
Who may feel it
- Businesses and business owners whose economic losses stem from personal injuries
- Individuals and victims seeking damages under civil RICO
- Companies, organizations, and individuals accused of racketeering-related conduct
- Plaintiffs’ and defense attorneys handling civil RICO litigation
- Insurers and industries facing increased RICO exposure
Key questions
- Does the RICO phrase “injured in his business or property” exclude economic losses that are derivative of personal injuries?