Shook Attorney Files Amicus Brief Urging Appeals Court to Apply Direct-Purchaser Rule in Civil RICO Cases
Shook Antitrust Practice Co-Chair Ryan Sandrock has filed an amicus brief on behalf of the Washington Legal Foundation (WLF) urging the U.S. Court of Appeals for the Ninth Circuit to affirm the dismissal of a civil-RICO claim in a class action against an automotive manufacturer under the direct-purchaser rule in Illinois Brick Co. v. Illinois.
In the underlying case, California consumers alleged the manufacturer installed “defeat devices” in its vehicles to evade emissions standards, leading to higher prices. The U.S. District Court for the Northern District of California dismissed their RICO claim, ruling that the plaintiffs lacked standing as indirect purchasers. WLF argues in the brief that because civil RICO was modeled on the Clayton Act’s private enforcement mechanism, indirect purchasers also lack standing as civil-RICO plaintiffs.
“WLF is concerned that allowing the plaintiffs' civil-RICO damages claim to proceed here would undercut the core policy justifications for barring indirect purchaser suits,” the brief argues. “That could make RICO litigation even more complex and uncertain, with more filings, more arguments among experts, and even longer times until resolution.”
Biederman v. FCA US LLC, No. 25-3854 (9th Cir., filed October 10, 2025).
In the underlying case, California consumers alleged the manufacturer installed “defeat devices” in its vehicles to evade emissions standards, leading to higher prices. The U.S. District Court for the Northern District of California dismissed their RICO claim, ruling that the plaintiffs lacked standing as indirect purchasers. WLF argues in the brief that because civil RICO was modeled on the Clayton Act’s private enforcement mechanism, indirect purchasers also lack standing as civil-RICO plaintiffs.
“WLF is concerned that allowing the plaintiffs' civil-RICO damages claim to proceed here would undercut the core policy justifications for barring indirect purchaser suits,” the brief argues. “That could make RICO litigation even more complex and uncertain, with more filings, more arguments among experts, and even longer times until resolution.”
Biederman v. FCA US LLC, No. 25-3854 (9th Cir., filed October 10, 2025).
