U.S. Court Dismisses Canada RICO Action Due to the Revenue Rule

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Friday, September 1, 2000
Author: 
Bruce Zagaris
Volume: 
16
Issue: 
9
Abstract: 
On June 30, 2000, the U.S. District Court for the Northern District of New York dismissed in its entirety the action brought by the Canadian Government against tobacco companies alleging violations of Racketeer Influenced and Corrupt Organizations Act (RICO) arising out of an alleged smuggling conspiracy intended to evade payment of Canadian taxes because the revenue rule bars it to the extent it tries to recover lost revenues, and fails to state cognizable injuries to the extent it requests damages for increased smoking and increased law enforcement costs.1 Immediately, the Canadian Attorney General announced his attention to appeal...[more]