Goren v. New Vision , 156 F.3d 721 (1998)

Goren v. New Vision

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The Court of Appeals held that Goren's complaint was properly dismissed for failure to plead a claim under the RICO statutes or fraud. Goren bought nutritional supplements from New Vision, after listening to an audiotape from an Independent Distributor of another defendant. She claimed that the four companies involved in the process of selling her allegedly fraudulent supplements had violated federal RICO law. To properly aledge a RICO complaint, the Plaintiff must show elements of 1) the conduct, 2) of an enterprise 3) through a pattern of 4) racketeering activity. Goren failed to properly plead facts of the elements of the RICO claim. She mealy alleged that the Defendant committed the acts in a conclusory fashion, but failed to aledge the actual events that constituted each element of a RICO claim. When pleading a cause of action, the Plaintiff must plead ultimate facts that constitute the bad acts complained of. The Court did no reach the question of the extent to which such facts must be pled with particularity.

Full case and summary are also available at: http://www.mlmlegal.com/legal-cases/Goren_v_NewVision.php

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Published In: Civil Procedure Updates, Criminal Law Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:Federal, 7th Circuit, Illinois | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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