Eclectic Properties East, LLC v. Marcus & Millichap Co.

We consider whether Plaintiffs-Appellants have pleaded facts sufficient under Federal Rules of Civil Procedure 8(a) and 9(b) to support a plausible theory of Racketeering Influenced and Corrupt Organizations Act (“RICO”) and RICO conspiracy *994 violations against Defendants-Appellees. We have jurisdiction under 28 U.S.C. § 1291 , and we hold that Plaintiffs’ complaint does not meet the pleading standards required by Bell Atlantic Corp. v. Twombly, 550 U.S. 544 , 127 S.Ct. 1955 , 167 L.Ed.2d 929 (2007); Ashcroft v. Iqbal, 556 U.S. 662 , 129 S.Ct. 1937 , 173 L.Ed.2d 868 (2009); Starr v. Baca, 652 F.3d 1202 (9th Cir.2011); and In re Century Aluminum Co. Securities Litigation, 729 F.3d 1104 (9th Cir.2013). The complaint does not contain adequate factual allegations to plausibly infer that Defendants specifically intended to defraud, and therefore does not show a plausible entitlement to relief. 1 The district court did not err in dismissing Plaintiffs’ complaint on the pleadings.

I

The scheme alleged by Plaintiffs began when defendants Paul Morabito and Jack Waelti purchased 22 commercial real estate properties in bulk for a total of about $20.3 million. Morabito, Waelti,…