District Judge J. Paul Oetken


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Plaintiffs, Russian citizens, asserted claims for violations of the RICO Act, RICO conspiracy, fraud, civil conspiracy, and unjust enrichment, arising out of a dispute over an overseas mining company. Defendants, also Russian citizens, filed counterclaims under RICO and state law. Specifically, plaintiffs alleged that defendants’ “fraudulent misrepresentations and omissions” about the future financial prospects of the company induced plaintiffs to significantly invest in defendants’ mining company, leading to large financial losses. Defendants counter-alleged that plaintiffs, disappointed with the company’s performance, forced them to sell the company and continued to threaten financial liability and physical harm. The court granted both parties’ dismissal motions as to the RICO claims, finding that both parties failed to allege a “domestic injury” required for a RICO claim. Instead, the court noted that the parties were Russian citizens operating companies incorporated in the British Virgin Islands and held that the parties’ use of and subsequent loss of access to U.S. banks was insufficient to establish a domestic injury. Finally, the court further declined to exercise supplemental jurisdiction over the state law claims.