Antitrust Law Daily Wrap Up, RICO NEWS: Flint, Michigan residents bring racketeering claim against governor, state agencies, (Apr 8, 2016)

By Greg Hammond, J.D.

The Governor of Michigan, the State of Michigan, the City of Flint, and others conspired to and intentionally and knowingly misrepresented the suitability and safety of the water from the Flint River to Flint’s residents, on a repeated basis, according to a complaint filed in the federal district court in Detroit. The action, which was brought by various residents of Flint, alleges that numerous defendants violated the Racketeer Influenced and Corrupt Organizations Act (RICO), among other laws (Washington v. Snyder, April 6, 2016).

The complaint asserts that Michigan Governor Richard Snyder, Emergency Managers, and other individuals acted in concert with the Michigan Department of Environmental Quality, Michigan Department of Health and Human Services, City of Flint, and others to carry out a fiscal scheme to balance Flint’s budget through the fraudulent sale of toxic Flint River water, and actively attempted to conceal the toxic conditions that they caused for a two-year period.

Flint residents claim that each individual RICO defendant knew and/or acquired actual knowledge and information through emails, phone conversations, memos, scientific reports, news stories, and public response that the water was untreated, toxic, and unfit for any use, including ingestion. Nevertheless, they continued to misrepresent, assure, and reassure citizens and property owners of Flint that the water was safe for all uses, the lawsuit charged.

The complaint also alleges that the defendants engaged in a pattern of racketeering because they continuously disseminated knowingly false information by the way of mail, wire, TV and other media mediums in a coordinated effort by all the defendants stating that the Flint River drinking water had been tested, that the water was safe for use and worthy of payment, and attempted to discredit experts proclaiming Flint’s water was toxic.

In addition to the RICO claim, the plaintiffs brought a number of substantive and procedural due process, breach of contract, breach of implied warranty, nuisance, trespass, unjust enrichment, negligence, intentional and negligent, infliction of emotional distress, and conspiracy claims. They seek an order certifying one or more classes; an order declaring the defendants’ conduct unconstitutional; an order that the defendants are liable for each cause of action; compensatory, treble, punitive, and consequential damages; attorney fees; and litigation expenses.

The Case is No. 2:16-cv-11247-AC-APP.

Attorneys: Chet Kern (Bern Ripka LLP), Ari Kresch (1-800-Law-Firm), and Solomon M. Radner (Excolo Law PLLC) for plaintiffs.

Companies: Rowe Professional Service Co.; Lockwood, Andres & Newman, Inc.; Veolia North America, LLC

News: RICO MichiganNews