TYMOSHENKO v. FIRTASH

The Second Amended Complaint (“SAC”) in this action alleges that several Ukrainian defendants, led by businessman Dmytro Firtash, financed a domestic racketeering enterprise (the “U.S. Enterprise”) conducted primarily by defendant United States citizens and corporations. Plaintiff Yulia Tymoshenko is the former Prime Minister of Ukraine and a longstanding critic of Firtash’s energy company, RosUkrEnergo (“RUE”). Money laundered by the U.S. Enterprise was allegedly used to finance Tymoshenko’s “persecution” in Ukraine, in retaliation for her hostility to RUE while in office. Plaintiffs Scott Snizek and Christy Gregory Rullis, meanwhile, are former employees of several defendant U.S. corporations that allegedly participated in the U.S. Enterprise. According to the SAC, those corporations failed to provide wages and other benefits promised to Snizek and Rullis. The SAC claims that the defendants’ conduct violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1961–1968, and state fraud law.

Several defendant U.S. corporations and citizens — CMZ Ventures, LLC (“CMZ”); the Dynamic Group (“Dynamic”); Barbara Ann Holdings, LLC; Vulcan Properties, Inc. (“Vulcan”); Paul Manafort; and Brad Zackson (collectively, the “Moving Defendants”) — have moved to dismiss the SAC with prejudice pursuant to Federal Rules of Civil Procedure 12(b)(2) and 12(b)(6).1 For the reasons set forth below, the Court GRANTS the motions to dismiss the SAC, but with leave for Plaintiffs to amend. — Tymoshenko v. Firtash, №11-CV-2794 (KMW). (September 30, 2014)

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