Federal 7th Circuit Court
Civil Court
RICO
Plaintiffs filed a lawsuit under the Rackateer Influenced and Corrupt Organizations Act as well as state law against a company that performed alcohol testing that the plaintiffs were required to undergo as a condition of their employment. Plaintiffs alleged that defendants marketed their test as a reliable indicator of continuing alcohol use, but that the company had failed to confirm the test’s validity and reliability. The district court dismissed the RICO claim under FRCP 12(b)(6) and denied supplemental jurisdiction as to the state law claims. The Seventh Circuit affirmed, finding that the allegations contained in the complaint failed to establish the proximate-cause requirement. (SCUDDER and KIRSCH, concurring)