It's October and, in addition to playoff baseball, that means the Supreme Court is back in session. The Court has chosen to hear arguments in two cases with significant ramifications for advertising law. Both cases will impact the risks and liabilities faced by companies accused of false or misleading advertising practices nationwide.
In Medical Marijuana, Inc. et al. v. Horn, the Court will decide whether plaintiffs may bring suit under the federal Racketeer Influenced and Corrupt Organizations Act (RICO) to recover economic damages resulting from personal injuries. In Dewberry Group v. Dewberry Engineers, Inc., the Court will determine whether the Lanham Act permits district courts to penalize corporate subsidiaries for trademark infringement.
In Medical Marijuana, long-haul trucker Douglas Horn filed civil RICO claims against a drug manufacturer and two affiliated holding companies. Horn alleged that the companies engaged in wire fraud by misrepresenting the amount of THC in their product, Dixie X, and that those representations cost him his job, insurance, and pension benefits after he failed a drug test. A federal court in New York ruled for the defendant, holding that RICO does not provide a cause of action for personal injury claims—but the Second Circuit reversed, holding that Horn's economic losses could form the basis of a RICO claim.
Read more at JD Supra.