Cases & Deals

PLAC files amicus brief addressing scope of RICO's injury requirement

Clients Product Liability Advisory Council (PLAC)

On behalf of the Product Liability Advisory Council (PLAC), Jones Day submitted an amicus brief urging the United States Supreme Court to grant certiorari in a case addressing whether a claim that a prescription drug manufacturer's failure to disclose alleged product defects constituted a RICO injury even where no plaintiffs had been physically injured by the alleged defect and the product performed as advertised. The Third Circuit Court of Appeals held that plaintiffs could state a RICO claim in these circumstances on a "inflated price" or "excess quantity" theory. That is, it held that had the risks been disclosed, plaintiffs either would have paid less or purchased fewer drugs. PLAC argued that the United States Supreme Court should review the decision in order to confine RICO to its statutory and constitutional limits. It further argued that permitting such cases to proceed would subject manufacturers to onerous RICO damages based on little more than speculation and guesswork.

In re: Avandia Marketing, No. 15-1078 (U.S.)