KOM Obtains Summary Dismissal of Racketeering Claim
Matthew W. Schlegel recently obtained a summary dismissal of a federal racketeering claim against Kupelian Ormond and Magy, P.C.‘s client. The plaintiff paid fees to various parties but ultimately failed to obtain a business loan. He then filed a federal lawsuit seeking over $3,000,000 in damages from all of the parties involved in the loan application process under the Racketeer Influenced and Corrupt Organizations Act, which is commonly referred to as RICO. Mr. Schlegel responded on behalf of KOM’s client by filing a motion to dismiss the plaintiff’s claim for failure to state a valid claim prior to conducting any formal discovery
The plaintiff responded to the motion by both insisting that it had stated a valid claim and requesting time to commence discovery as to facts supporting its claim. After the plaintiff filed its response to KOM’s motion, the plaintiff apparently reached settlements with all of the other defendants. KOM’s client, however, insisted on vindicating his reputation and refused to pay the plaintiff anything in settlement. Mr. Schlegel and the plaintiff’s counsel thus proceeded to argue the dismissal motion at hearing. The court later granted the motion and held that KOM’s client was entitled have the claims against him dismissed.