USLegal Reporter

The United States Supreme Court today rejected an appeal by Microsoft and Best Buy in an alleged racketeering lawsuit. The two companies had partnered in a joint venture aimed at getting consumers to sign up for MSN online service accounts when they bought computers at Best Buy stores.

In a class action lawsuit lead by James Odom, Odom claims that Best Buy had illegally provided his credit card information to Microsoft to begin charging him for an MSN Internet services account after a six month free trial period was over. The lawsuit alleges that this activity involved a fraudulant transfer of his personal information and violated RICO, the Racketeer Influenced and Corrupt Organizations Act.

Microsoft had appealed to the Supeme Court to have the civil lawsuit dismissed. The Supreme Court let stand a ruling by the 9th U.S. Circuit Court of Appeals. That ruling by the San Franciso based court allows the civil suit to proceed.

The case is Microsoft Corp. v. Odom, 07-138. 

Source:

http://ap.google.com/article/ALeqM5hhJ33u7bR7BgiKbZId2dgANfjp7AD8S9O7C80 

A group of Mississippi Gulf Coast residents filed a federal lawsuit today against State Farm Fire & Casualty Company. The suit alleges that State Farm violated the civil Racketeer Influenced Corrupt Organization Act, also known as RICO. 

In the lawsuit, plaintiff’s attorney Richard “Dickie” Scruggs accuses State Farm of engaging in a “pattern of racketeering” by having engineering reports changed to deny policyholder claims over Hurricane Katrina damage.  State Farm policies typically cover damage caused by wind, but not flood waters or storm surge. The suit alleges home inspection reports were manipulated to avoid pay outs.

Source http://www.chron.com/disp/story.mpl/ap/fn/4906625.html