European Community v. RJR Nabisco, Inc., No. 11-2475 (2d Cir. 2014)Annotate this Case
The European Community filed suit against RJR, alleging that RJR directed, managed, and controlled a global money-laundering scheme with organized crime groups in violation of the Racketeer Influenced and Corrupt Organizations (RICO) statute, 18 U.S.C. 1961 et seq., laundered money through New York-based financial institutions and repatriated the profits of the scheme to the United States, and committed various common law torts in violation of New York state law. The court concluded that the district court erred in dismissing the federal and state law claims; the court disagreed with the district court's conclusion that RICO cannot apply to a foreign enterprise or to extraterritorial conduct; the court concluded that, with respect to a number of offenses that constitute predicates for RICO liability and were alleged in this case, Congress had clearly manifested an intent that they apply extraterritorially; and, as to the other alleged offenses, the Complaint alleged sufficiently important domestic activity to come within RICO's coverage. The court also concluded that the district court erred in ruling that the European Community's participation as a plaintiff in this lawsuit destroyed complete diversity; the European Community is an "agency or instrumentality of a foreign state" under 28 U.S.C. 1603(b) and therefore, qualified as a "foreign state" for purposes of 28 U.S.C. 1332(a)(4); and its suit against "citizens of a State or of different States" came within the diversity jurisdiction. Accordingly, the court vacated and remanded for further proceedings.
The court issued a subsequent related opinion or order on April 29, 2014.
The court issued a subsequent related opinion or order on August 20, 2014.
The court issued a subsequent related opinion or order on April 13, 2015.