449 F. Supp. 2d 1 (D.D.C. 2006)
United States v. Philip Morris USA Inc.
Did the tobacco companies, including Philip Morris USA Inc., violate the Racketeer Influenced and Corrupt Organizations Act by engaging in deceptive practices and misleading advertising regarding the health risks of smoking?
A corporation may be held liable under the Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. §§ 1961-1968) if it or its associates conduct an enterprise's affairs through a pattern of racketeering activity, including acts of fraud.
The court found that Philip Morris USA Inc. and other defendant tobacco companies violated RICO by engaging in a decade-long enterprise to deceive the public about the health risks and addictiveness of smoking, concluding that they engaged in mail and wire fraud, among other RICO violations.
This decision underscored the judiciary's role in regulating corporate conduct, particularly when public health is implicated. It illustrated a rare application of RICO in a civil context against major corporations and set a precedent for subsequent litigation involving deceptive corporate practices. For law students, this case provides insight into civil RICO applications and the complexities of litigating against large corporations with significant resources.