RICO Suit Against Microsoft To Continue

The Supreme Court on Monday rejected an appeal by Microsoft and Best Buy in a lawsuit alleging the two companies fraudulently signed up customers for Microsoft's online service.

As with most appeals to the Supreme Court, this one didn't deal with the facts of the case, but whether the companies could be sued under the Racketeer Influenced and Corrupt Organizations (RICO) Act. This act, originally passed to give law enforcement more tools to address organized crime, is increasingly being used against businesses accused of intentionally organizing a criminal activity.

Because the Supreme Court rejected the appeal, the companies are bound by the appeals court ruling, which allowed the lawsuit to go forward under the RICO Act.

Are tech company lawsuits a necessary evil or just plain evil? Tell me your opinion at pvarhol@redmondmag.com.

Posted by Peter Varhol on 10/16/2007 at 1:23 PM


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