Because the federal RICO statute has been amended to bar claims that could be brought under securities law, a federal appeals court has upheld the dismissal of a $70 million class action RICO suit filed by the victims of an alleged Ponzi scheme.

U.S. Circuit Judge Theodore A. McKee said Congress included the RICO amendment in the Private Securities Litigation Reform Act because it wanted to “completely eliminat[e] the so-called ‘treble damage blunderbuss of RICO’ in securities fraud cases.”

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