Cefali v. Buffalo Brass Co., Inc.
Six former employees of Atlantic Richfield Company (Arco) sued Arco and American Brass Company (ABC) after being discharged by ABC shortly after Arco sold its Metals Division to ABC. The plaintiffs alleged that the defendants violated the Racketeer Influenced and Corrupt Organization Act (RICO) through mail fraud, aiming to defraud them of superior Arco severance benefits. They also brought a state law claim for breach of employment agreement. The defendants moved to dismiss the complaint. The court granted the defendants' motions, dismissing the RICO claim because the plaintiffs failed to allege a 'pattern of racketeering activity' as required by RICO, finding the alleged acts to be part of a single transaction rather than continuous criminal activity. Consequently, the state law claim was also dismissed without prejudice due to the lack of federal jurisdiction.