RJR Nabisco, Inc. v. European Community: Supreme Court Limits Extraterritorial Application of RICO On
On June 20, 2016, in a 4-3 decision the Supreme Court decided RJR Nabisco, Inc. v. European
Community holding that certain substantive prohibitions of RICO can have extraterritorial application if the conduct at issue violates an underlying predicate statute that itself has extraterritorial application. The Court further held that, in order to state a claim under RICO for injury to business or property, private civil plaintiffs must allege a domestic injury. Equitable relief under RICO based on foreign injuries is necessarily foreclosed by the Court’s holding that RICO’s private cause of action requires a domestic injury to business or property.