So, what exactly is the Racketeer Influenced and Corrupt Organizations Act [RICO]?
Basically it's a federal law designed to combat organized crime in the United States, it was introduced in 1970 and has been used to prosecute members of the Mafia.
On June 30, 2014, Attorneys representing GlaxoSmithKline, asked the Court of Appeals to throw out racketeering claims in three class actions that had accused them of hiding heart disease risks associated with the diabetes drug Avandia.
In 2013 Pennsylvania U.S. District Judge Cynthia M. Rufe refused to dismiss claims made by three union benefit funds under the Racketeer Influenced and Corrupt Organizations Act, ruling the plaintiffs had adequately alleged a scheme whereby GSK suppressed evidence of Avandia’s cardiovascular risks to increase the number of prescriptions written and covered.
The crux of GSK's appeal is that District Judge Cynthia M. Rufe erred in her initial ruling. They claim, “A plaintiff cannot be injured by a misrepresentation about a health care product unless the plaintiff personally receives a ‘compromised or diminished’ benefit from the product as a result.”
More on GSK allegedly violating the Racketeer Influenced and Corrupt Organizations Act here [Subscription only]
Back in 2011 GSK also failed in their efforts to have Plaintiffs' Proposed Specific Causation Expert Witnesses Nicholas DePace, M.D excluded from giving testimony. Their motion was denied, once again by Pennsylvania U.S. District Judge Cynthia M. Rufe [More here]
Bob Fiddaman
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