VIEWS: 3 PAGES: 35 CATEGORY: Law POSTED ON: 5/27/2010
Assume that, tomorrow, a large company advertises a "miracle pill" that it claims will cure all forms of cancer. In response to the national campaign, consumers across the country purchase the pill, which costs $10. Only then do consumers discover that the pill is worthless and that the company intentionally defrauded them. The Racketeer Influenced and Corrupt Organizations ("RICO") statute provides a basis for prosecution of the hypothetical company. Under the prevailing interpretation of RICO, which requires individualized proof of reliance and injury, the miracle pill consumers face certain denial of class certification based on Rule 23's predominance requirement, and this denial, in turn, defeats these claims before they ever reach the courthouse. If the court certifies the miracle pill class under Rule 23, under this note's solution, the class will present its aggregate proof at trial, and if the factfinders are persuaded, a monetary judgment will be entered against the miracle pill company.
Small Claim Mass Fraud Actions: A Prop
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"Small Claim Mass Fraud Actions: A Proposal for Aggregate Litigation Under RICO"Please download to view full document