Butala v. Agashiwala
Twenty individual investors sued accountants Mahesh and Loma Agashiwala, alleging RICO violations and New York law claims for fraud, negligent misrepresentation, and breach of fiduciary duty related to fraudulent real estate investments. The defendants moved to dismiss, arguing the RICO claims were time-barred and that fraud was not pleaded with particularity. The court granted the motion, dismissing the RICO claims as untimely because the four-year statute of limitations began in February 1990, well before the February 1995 lawsuit filing, and plaintiffs failed to adequately plead fraudulent concealment and due diligence. Additionally, the complaint lacked particularity in pleading fraud under Fed.R.Civ.P. 9(b). The supplemental state law claims were also dismissed as the federal claims were no longer active, and the dismissal was without prejudice, allowing for an amended complaint.