2nd Circ. Nixes $60M RICO Suit Against Insurance Groups

Law360, New York (March 18, 2013, 4:03 PM EDT) -- The Second Circuit on Monday upheld the dismissal of Petrosurance Inc.’s $60 million racketeering suit against two insurance industry groups alleging that they delayed a payout from the estate of a liquidated insurance company.

Petrosurance said the National Association of Insurance Commissioners and National Conference of Insurance Guaranty Funds Inc. violated the Racketeer Influenced and Corrupt Organizations Act, but the appeals panel agreed with a district court ruling that Petrosurance failed to allege any facts that would support a plausible RICO claim.

The complaint alleges that...
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