RJR Nabisco, Inc. v. European Community: U.S. Supreme Court Holds That Some RICO Claims Apply Extraterritorially, but a Private RICO Plaintiff Must Prove Domestic Injury

Sullivan & Cromwell LLP - June 21, 2016

In RJR Nabisco, Inc. v. European Community, the Supreme Court considered the extent to which the  Racketeer Influenced and Corrupt Organizations Act (RICO) applies extraterritorially.  The Court held that some of RICO’s racketeering prohibitions can apply to extraterritorial conduct, if the conduct violates an underlying predicate statute that itself applies extraterritorially.  The Court further held, however, that RICO’s private cause of action for any person “injured in his business or property” does not apply extraterritorially.  As a result, civil RICO plaintiffs may only seek to recover for domestic injuries, not injuries suffered abroad.