General Motors RICO Ruling Is Case Study In Proximate Cause

By Dylan Smith  (July 27, 2020, 2:59 PM EDT) -- For a Racketeer Influenced and Corrupt Organizations Act claim to be dismissed at the pleading stage is not unusual.

But when a federal district court recently dismissed the RICO counts in a lawsuit that General Motors filed against Fiat Chrysler Automobiles NV and its U.S. subsidiary, Fiat US LLC, there was reason to take note.[1] The blue-chip law firms that drafted GM's complaint, comprising 198 paragraphs, 94 pages, 93 footnotes and assorted photographs, undoubtedly understood RICO's pleading requirements.[2]

Yet on July 8, U.S. District Judge Paul Borman, of the U.S. District Court for the Eastern District of Michigan held that because Fiat...

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