A steel company’s claim that it was harmed by a rival in the steel products trade who opened a competing warehouse with funds gained through tax fraud is enough to satisfy the proximate cause for damages under the Racketeer Influenced and Corrupt Organizations Act, the U.S. Court of Appeals for the Second Circuit ruled yesterday.

A divided circuit panel reinstated the claims of Ideal Steel Supply, which asserted that National Steel Supply opened a competing facility in the Bronx with money it gained by luring customers to its Queens location by not charging sales tax if they paid in cash and then filing fraudulent sales and income tax reports.

This content has been archived.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 Advance® 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]