STORY FROM: Reinsurance & Arbitration
Calif. Federal Judge Dismisses RICO Claims Against Applied Underwriters in Fraud Case
March 9, 2018
LOS ANGELES - A California federal judge has dismissed claims accusing Applied Underwriters Inc. of violating the Racketeer Influenced and Corrupt Organizations Act in marketing and selling its EquityComp workers' compensation program, finding plaintiffs failed to allege a RICO enterprise.
In a Feb. 27 order, Judge Michael Fitzgerald of the U.S. District Court for the Central District of California explained that RICO liability may only attach to those who "participate in the operation or management of the enterprise itself." In the instant case, plaintiff's allegations indicate that defendants were "acting within the scope of a single corporate structure, guided by ...
Associated Law Firms