For decades, U.S. courts have applied a multi-factor balancing test to determine whether the Racketeer Influenced and Corrupt Organizations Act applies outside U.S territory. However, in the wake of the U.S. Supreme Court’s recent reaffirmance of the “presumption against extraterritoriality” in Morrison v. National Australia Bank Ltd., 130 S. Ct. 2869 (2010), lower courts have begun to re-examine the question of RICO’s extraterritorial application. A pair of 2nd Circuit opinions have cited Morrison to curtail the extraterritorial application of RICO, but a number of ambiguities remain, and it remains unclear whether the 2nd Circuit’s approach will be adopted widely by other federal courts.

The scope of civil RICO liability is quite broad, and RICO may impose treble-damages liability for overseas conduct that is not actionable (or if actionable, would not trigger treble damages) under the law of the place where it occurs. Accordingly, the scope of RICO’s application to overseas conduct is of interest to a wide range of companies operating outside of the United States.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]