Case Conclusion Date:May 1, 2011
Practice Area:Class Action
Outcome:Summary Judgment for the Defense
Description:In a summary judgment order issued by U.S. District Court Judge Lisa Godbey Wood, the Court dismissed the plaintiffsâ€™ putative class action alleging violations of Georgiaâ€™s Racketeer Influenced and Corrupt Organizations (RICO) statute premised on mail fraud and wire fraud. The case focused on the sale of undeveloped lots in a resort community developed by a long time NYSE traded client. Plaintiffs, on behalf of a putative class of approximately 700 lot purchasers, sought treble damages, punitive damages, and attorneysâ€™ fees totaling in excess of $100,000,000.00. The decision reinforces the value of a well-crafted merger clause in real estate sales contracts and the importance of distinguishing between reliance and proximate cause in RICO actions premised on mail or wire fraud.