manufacturers liable for violating RICO concluding that there was overwhelming

Manufacturers liable for violating rico concluding

This preview shows page 12 - 14 out of 129 pages.

manufacturers liable for violating RICO, concluding that there was “overwhelming evidence” of defendants' intentional use of deceptive brand descriptors to induce smokers to purchase Lights. Philip Morris, 449 F.Supp.2d at 27 . Plaintiffs seek $800 billion in economic damages (trebled) stemming from their purchases of Lights. On September 25, 2006, the district court certified their proposed class of Lights smokers. On November 16, 2006, this court stayed the proceedings below and granted defendants leave to take an interlocutory appeal under Federal Rule of Civil Procedure 23(f) . We now reverse the district court's class certification order and decertify the class. 11
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DISCUSSION [3] [4] We review the district court's certification order for abuse of discretion. See Moore v. PaineWebber, Inc., 306 F.3d 1247, 1252 (2d Cir.2002) . We will “exercise even greater deference when the district court has certified a class than when it has declined to do so.” Marisol A. by Forbes v. Giuliani, 126 F.3d 372, 375 (2d Cir.1997) . However, as we recently made clear, “a district judge may not certify a class without making a ruling that each Rule 23 requirement is met ... [and] all ... evidence must be assessed as with any other threshold issue,” whether or not any such assessment also bears on the merits of the case. Miles v. Merrill Lynch & Co. (In re Initial Pub. Offerings Sec. Litig.), 471 F.3d 24, 27 (2d Cir.2006) [hereinafter In re IPO ] (emphasis added). *222 [5] Rule 23(a) requires that a class action possess four familiar features: (1) numerosity; (2) commonality; (3) typicality; and (4) adequacy of representation. If those criteria are met, the district court must next determine whether the class can be maintained under any one of the three subdivisions of Rule 23(b) . With respect to class actions for money damages sought under Rule 23(b)(3) , the district court must also find that “questions of law or fact common to class members predominate over any questions affecting only individual members,” and that the class action “is superior to other available methods for fairly and efficiently adjudicating the controversy.” Fed.R.Civ.P. 23(b)(3) . FN4 The primary issue in this case, to which we now turn, is whether the requirement that common questions predominate has been met. Because we answer this question in the negative, we need not address whether a class action is a superior method of adjudicating plaintiffs' claims. FN4. All parties concede that this suit is not susceptible to certification under Rule 23(b) (1) or (2) . I. Elements of a Civil RICO Claim and the Predominance Requirement [6] [7] Section 1964(c) of Title 18 (“civil RICO”) gives private citizens a cause of action under RICO by providing that “[a]ny person injured in his business or property by reason of a violation of [RICO's substantive provisions] may sue therefor in any appropriate United States district court and shall recover threefold the damages he sustains and the cost of the suit, including a reasonable attorney's fee.” 18 U.S.C. § 1964(c) . To fulfill the requirement that the injury occur
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