California Pharmacy Management, LLC v. Zenith Insurance

PROCEEDING (IN CHAMBERS): ORDER DENYING MOTION TO DISMISS

Before the Court is Defendants Zenith Insurance Company and ZNAT Insurance Company (collectively “Defendants” or “Zenith”) Motion to Dismiss the Second Amended Complaint (“Motion”). The Court finds the matter appropriate for decision without oral argument. Fed R. Civ. P. 78; Local R. 7-15. After considering the moving, opposing, and replying papers, and for the reasons stated below, the Court hereby DENIES the Motion.

I. Background

A. Procedural History

On February 26, 2009 Plaintiff California Pharmacy Management, LLC (“CPM”) filed its original complaint alleging a Racketeer Influenced and Corrupt Organizations Act (“RICO”) cause of action against Defendants based on mail and wire fraud. On April 23, 2009, CPM filed its First Amended Complaint. Following the Court’s grant of a Motion to Dismiss in a related action, the parties entered into a stipulation to allow CPM to file a Second Amended Complaint (“SAC”). On August 18, 2009, CPM filed its SAC. Defendants argue that the SAC fails to cure the defects in either the Complaint or the First Amended Complaint and ask this Court to dismiss Plaintiffs action with…