Supreme Court Rules Lost Wages May Be Recoverable Under RICO For False Advertising After Drug Test Dismissal

On April 2, 2025, the U.S. Supreme Court ruled that a truck driver who lost his job after testing positive for marijuana can pursue RICO claims for lost wages against sellers of a fraudulently marketed pain relief product. The Court found that damages to “business or property” under RICO could include economic harms from personal injury. The decision expands RICO’s civil reach but leaves open questions about the scope of recoverable economic harms in employment-related cases.

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