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Franchisee’s Federal RICO Claim Sunk by Motion to Dismiss

August 21, 2018

Shannon Sprinkle and John deMoulpied obtained a dismissal of a federal civil RICO claim alleged by a former franchisee against a franchisor relating to the franchisor’s merged video platform delivery services. The franchisee-plaintiff, a public utility provider of broadband DSL and TV services in Oregon, Idaho, and Nevada, alleged that the franchisor and its affiliated entities had engaged in a scheme to defraud it and other companies, by misrepresenting the expected performance and profitability of the franchise, in violation of the federal RICO statute. The defense moved to dismiss the RICO claim, arguing that the plaintiff had failed to adequately plead the alleged misrepresentations. The U.S. District Court for the Northern District of Georgia agreed, dismissing the RICO claim without prejudice.

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