Sedima v. Imrex Co‪.‬

The Racketeer Influenced and Corrupt Organizations Act (RICO), Pub. L. 91-452, Title IX, 84 Stat. 941, as amended, 18 U. S. C. ?? 1961-1968, provides a private civil action to recover treble damages for injury "by reason of a violation of" its substantive provisions. 18 U. S. C. ? 1964(c). The initial dormancy of this provision and its recent greatly increased utilization are now familiar history. In response to what it perceived to be misuse of civil RICO by private plaintiffs, the court below construed ? 1964(c) to permit private actions only against defendants who had been convicted on criminal charges, and only where there had occurred a "racketeering injury." While we understand the courts concern over the consequences of an unbridled reading of the statute, we reject both of its holdings.