United Food and Commercial Workers Unions and Employers Midwest Health Benefits Fund v. Walgreen Co.

Federal 7th Circuit Court
Civil Court
RICO
Citation
Case Number: 
No. 12-2977
Decision Date: 
July 8, 2013
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Dist. Ct. did not err in dismissing for failure to state claim plaintiffs’ RICO action alleging that defendants-pharmacy and drug manufacturer engaged in scheme to defraud insurance companies by filling prescriptions for several generic drugs with dosage form that differed from, and was more expensive than, dosage form prescribed to customers. While instant complaint contained allegations of misconduct by both defendants, plaintiffs failed to sufficiently state “enterprise” element of RICO claim by alleging that both defendants were conducting affairs of RICO enterprise, as opposed to allegations indicating that defendants sought only to advance their own self-interests. Fact that complaint might have contained sufficient allegations to state claim for fraud against either defendant did not require different result since RICO does not penalize parallel, uncoordinated fraud.