August 28, 2006
U.S. District Court Judge Joseph Greenaway grants Wal-Mart's motion to dismiss racketeering claims brought on behalf of a nationwide class of undocumented workers who provided floor cleaning services at various Wal-Mart stores around the country.
On August 28, 2006, U.S. District Court Judge Joseph Greenaway granted Wal-Mart's motion to dismiss racketeering claims brought on behalf of a nationwide class of undocumented workers who provided floor cleaning services at various Wal-Mart stores around the country. The plaintiffs, who were employed by independent contractors, claimed that Wal-Mart violated numerous immigration laws and engaged in money laundering and acts of involuntary servitude. The Court dismissed the RICO claims with prejudice, holding that the plaintiffs had failed to allege a viable RICO enterprise and could not establish that their purported injuries were caused by the asserted RICO violations. Although noting that dismissal with prejudice is a "harsh remedy," the Court agreed with Wal-Mart that granting plaintiffs further leave to amend their RICO claims would be "inequitable" and "futile." The ruling significantly narrows the scope of the lawsuit against Wal-Mart, both by precluding certification of a nationwide class of plaintiffs and by eliminating the prospect of treble damages under RICO. Wal-Mart's defense was led by D.C. litigation partner David P. Murray, with the assistance of D.C. litigation associates John LoCurto, Ben Shapiro, and Chris Williamson.
