RICO Act -- 2016

In re Avandia Mktg.   (U.S. Supreme Court)

What constitutes an injury under RICO

The NAM filed a brief urging the Supreme Court to review a case involving RICO claims by third-party payors seeking reimbursement of monies spent for prescriptions of Avandia. Even though the product worked and there were no physical injuries, they claim that because certain risks were not disclosed, they should have paid less for the drug. Our brief argues that the Court must clarify whether these allegations are sufficient to constitute an injury under RICO. The courts are divided on this, and if the lower court’s decision here is upheld, this will incentivize abusive, speculative and burdensome litigation against manufacturers of all kinds.

On 6/6/16, the Supreme Court denied the petition, which was disappointing as there are a number of similar cases pending that would benefit from a clear decision from the Court.

Related Documents:
NAM amicus brief  (March 10, 2016)


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