541 F.Supp.3d 670
D.S.C.2021Background
- Plaintiff Brian Bowen Jr., a top high-school basketball recruit, alleges Defendants (Adidas and several associates) conspired to bribe his father to induce Bowen to attend the University of Louisville, violating NCAA rules and constituting RICO predicate acts (wire fraud/bribery).
- Bowen’s father accepted a $100,000 cash deal (May 31, 2017 agreement) with payments to be routed through AAU-affiliated entities; only the first $25,000 installment was paid before arrests of alleged conspirators.
- After the SDNY corruption charges, Louisville withheld Bowen from team activities; he remained on scholarship, later transferred to USC (unable to play due to transfer rules), then turned pro in Australia and later went undrafted in the 2019 NBA draft.
- Adidas contends it was the victim of a scheme by rogue employees and others who misappropriated Adidas funds; Bowen contends Adidas led the RICO enterprise.
- Adidas moved for summary judgment focused on RICO standing after discovery; the Court granted summary judgment for Adidas and other defendants and dismissed Bowen’s RICO claims with prejudice for lack of statutory RICO standing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| RICO standing — whether Bowen suffered injury to "business or property" | Bowen: lost benefits of Louisville scholarship, NCAA eligibility, legal fees, and diminished future professional earnings due to defendants' racketeering. | Defendants: scholarship was not withdrawn; claimed harms are personal/expectancy interests, legal fees were paid by his father or voluntarily incurred, and lost earnings are speculative. | Court: No RICO standing — alleged harms are not injury to business or property (expectancy/personal injuries). |
| Causation/proximate cause | Bowen: defendants' RICO conduct directly and proximately caused his asserted losses. | Defendants: causal chain is attenuated; other independent events (prior improper benefits, arrests) break causation. | Court: Declined to reach full causation analysis because lack of cognizable RICO injury is dispositive; noted Bowen’s causal theory is attenuated. |
| Availability of injunction under RICO | Bowen: seeks broad injunctive relief (e.g., bar Adidas from sponsoring NCAA programs) to prevent future recruitment bribery. | Defendants: injunctive relief requires a viable RICO claim and standing. | Court: Injunctive relief unavailable because Bowen lacks RICO standing; equitable relief rejected. |
| Summary judgment for non-moving defendants (Gassnola, Sood) | Bowen: (implicitly) disputes granting relief against all defendants without motions. | Defendants: court may grant summary judgment sua sponte where record and notice are adequate. | Court: Exercised discretion under Rule 56(f) and granted summary judgment for non-moving defendants given complete record. |
Key Cases Cited
- Sedima, S.P.R.L. v. Imrex, 473 U.S. 479 (1985) (RICO private plaintiff must be "injured in his business or property").
- Potomac Elec. Power Co. v. Elec. Motor & Supply, Inc., 262 F.3d 260 (4th Cir. 2001) (affirming business-or-property injury requirement for RICO standing).
- Bast v. Cohen, Dunn & Sinclair, P.C., 59 F.3d 492 (4th Cir. 1995) (personal injuries and attendant pecuniary losses do not satisfy RICO's business-or-property injury).
- Stochastic Decisions, Inc. v. DiDomenico, 995 F.2d 1158 (2d Cir. 1993) (legal fees may be recoverable damages under RICO where proximately caused, but distinguishable from standing injury).
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (summary judgment standard — movant’s initial burden).
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (standard for genuine dispute of material fact).
- Colorado Seminary v. NCAA, 570 F.2d 320 (10th Cir. 1978) (scholarship does not create a protected property right to participate in athletics).
- Denis J. O'Connell High Sch. v. Va. High Sch. League, 581 F.2d 81 (4th Cir. 1978) (no right to participation in interscholastic athletics).
- Strates Shows, Inc. v. Amusements of Am., Inc., 379 F. Supp. 2d 817 (E.D.N.C. 2005) (legal fees voluntarily incurred to mitigate alleged harm are indirect and generally not a RICO standing injury).
- Walters v. McMahen, 684 F.3d 435 (4th Cir. 2012) (RICO conspiracy claim fails if underlying substantive RICO claim is deficient).