By: Daily Record Staff//September 18, 2013
By: Daily Record Staff//September 18, 2013//
U.S. Court of Appeals for the Second Circuit
RICO Allegations — Common Issues of Fact and Law
In re U.S. Foodservice Inc. Pricing Litig.
Judges Straub, Livingston and Lynch
Background: The defendants appealed from the certification of a nationwide class of customers of U.S. Foodservice, Inc. on claims under the Racketeer Influenced and Corrupt Organizations Act and state contract law. Specifically, it is alleged that the country’s second largest food distributor, whose customers include the United States government, hospitals, schools and restaurant chains, fraudulently overbilled its clients.
Ruling: The Second Circuit affirmed. The court found that there were common issues of fact and law that would predominate over the individualized issues and that a class action was appropriate. The Second Circuit noted that the RICO claims who predominate despite the multiple jurisdictions involved in the state contract claims.
Ryan Phair of Hunton & Williams for the plaitniffs-appellees; Glenn M. Kurtz of White & Case for the defendant-appellant