Eclectic Props. East v. The Marcus & Millichap Co.
Plaintiffs filed suit against defendants under the Racketeering Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1962. Plaintiffs alleged that defendants conspired to pay inflated rent payments so that the properties sold to plaintiffs would appear far more valuable to third parties. The court held that the complaint did not meet the pleading standards by Bell Atlantic Corp. v. Twombly, Ashcroft v. Iqbal, and In re Century Aluminum Co. Securities Litigation. The court concluded that the complaint's factual allegations did not support a plausible inference that defendants had the required specific intent to defraud, nor do they tend to exclude the alternative explanation that the transactions at issue were merely a group of business deals gone bad during a deep recession. The court affirmed the dismissal of plaintiffs' RICO allegations and the dismissal of plaintiffs' allegations of RICO conspiracy. View "Eclectic Props. East v. The Marcus & Millichap Co." on Justia Law