Extended Scope of Injuries Covered by RICO Ruling by Supreme Court
The Supreme Court's recent decision in the case Medical Marijuana, Inc. v. Horn marks a significant shift in federal civil RICO litigation. The Court, in a 5-4 ruling, affirmed the Second Circuit's decision that an individual's employment is included in the definition of "business" under section 1964(c) of RICO.
Douglas Horn, a truck driver, sued a product manufacturer after ingesting a product containing illegal THC and losing his job. The Court's ruling allows plaintiffs to recover treble damages under the federal civil RICO statute for business or property losses that stem indirectly from personal injuries.
Previously, RICO’s phrase “injured in his business or property” was widely interpreted to exclude personal injuries, barring treble damages for those types of claims. However, the Court's ruling rejected this exclusion, holding that if personal injuries cause a business or property loss, those economic damages fall within RICO’s ambit.
Potential implications for defendants include expanded RICO liability exposure, increased treble damages risk, a shift in litigation strategy, and the potential for subrogation claims and broader use in mass torts. Defendants may still rely on challenging the establishment of a direct causal link and the demonstration of a “pattern of racketeering activity,” which remain rigorous hurdles.
Justice Amy Coney Barrett authored the majority opinion, while Justices Clarence Thomas and Brett Kavanaugh filed separate dissenting opinions. The ruling undermined the manufacturer's own dictionary definition of "injured."
The Medical Marijuana, Inc. case resolved a circuit split among the Sixth, Seventh, and Eleventh Circuits, which precluded relief for any economic loss that resulted from a personal injury, and the Second and Ninth Circuits, which permitted relief from economic injuries that derived from a personal injury.
Sources:
- Mololamken.com, Supreme Court Business Briefing (July 2025)
- Straffordpub.com, CLE Webinar on Medical Marijuana Inc. v. Horn (August 2025)
- Lawdragon.com, Supreme Court Business Docket Review (July 2025)
In the wake of the Supreme Court's decision in the Medical Marijuana, Inc. v. Horn case, there could be a significant shift in policy-and-legislation related to federal civil RICO litigation, especially in areas such as crime-and-justice, general-news, and politics. This ruling allows plaintiffs to seek treble damages for business or property losses that stem indirectly from personal injuries, a change that could potentially have far-reaching implications for defendants.
