Gershenoff and Smith Obtain Complete Dismissal of Federal RICO Suit

Max Gershenoff and Joshua Smith obtained complete dismissal of a federal lawsuit filed in the United States District Court for the Eastern District of New York alleging civil RICO violations, tortious interference with contract and conversion claims.

Plaintiff, a lender in the merchant cash advance industry, alleged that various persons and entities — including the firm’s clients — conspired to deprive it of its security interest in certain receivables.

Magistrate Judge Gary Brown, to whom the case was referred for all purposes, issued a 24-page decision in which he dismissed the RICO claims against all parties and agreed with the firm’s position that the tortious interference and conversion claims failed to allege a cause of action against our clients.