RICO Act -- 2016



In re: Avandia Marketing v. Allied Services Division Welfare Fund   (U.S. Supreme Court)

What constitutes an injury under RICO

The NAM filed a brief urging the U.S. Supreme Court to review a case involving Racketeer Influenced and Corrupt Organizations Act (RICO) claims by third-party payors seeking damages reimbursement of monies spent for prescriptions. The plaintiffs’ lawsuit sought damages, even though the product worked and no physical injuries occurred, and argued that they overpaid for the drug in comparison to other alternatives because certain risks were not disclosed. If courts allow RICO claims against pharmaceutical manufacturers, the potential liability could chill the development of new medications and cause manufacturers uncertainty about the proper standard for causation under RICO. The NAM’s brief argued that further guidance is needed because of the uncertainty about the proper standard for causation under RICO, which incentivizes abusive, speculative and burdensome litigation against manufacturers of all kinds. Unfortunately, the Supreme Court declined to review the case.


Related Documents:
NAM brief  (March 10, 2016)