Western Select Securities, Inc. v. San Francisco City & County Employees' Retirement System

MEMORANDUM **

Western Select Securities, Inc. appeals the district court’s dismissal under Federal Rule of Civil Procedure 12(b)(6) of its suit against the City and County of San Francisco, several city organizations, and their employees, as well as a number of private investment companies and their employees. It alleges that the public and private defendants conspired to exclude Western Select and other woman-, minority-, and locally-owned businesses from participating in the investment management of the San Francisco Employees’ Retirement System (“SFERS”). Plaintiffs allege violation of the Racketeer Influenced Corrupt Organization (“RICO”) law, 18 U.S.C. § 1961 , et seq.

*681 The key issue is whether the allegations of the complaint were sufficient to state a RICO claim. Under our well-established law, the complaint must show that the alleged predicate acts of mail and wire fraud proximately caused the plaintiff specific injury. See Holmes v. Securities Investor Protection Corp., 503 U.S. 258, 267-68 , 112 S.Ct. 1311 , 117 L.Ed.2d 532 (1992)(discussing proximate cause requirement); Sedima, S.P.R.L. v. Imrex Co., 473 U.S. 479, 495 , 105 S.Ct. 3275 , 87 L.Ed.2d 346 (1985)…