According to national media reports Monday, the US Supreme Court is allowing Bronx, New York-based steel products retailer Ideal Steel Supply Corporation to go forward with a federal racketeering lawsuit against its competitor, Brooklyn, New York-based National Steel Supply, Inc. While the suit was filed in 2002, it had been declined before in 2006 due to lack of connection between the alleged fraud and damage to its business. The allegation is that National Steel Supply, Inc. used funds from a tax fraud scheme to open a competing store, which damaged the business of Ideal Steel Supply Corporation. The US Chamber of Commerce has asked the US Supreme Court to not allow the suit to go forward due to the nature of the suit--the US Chamber of Commerce has been trying to restrict the use of racketeering laws from corporate conflicts.
According to the report, the US Supreme Court had declined to hear an appeal from National Steel Supply, Inc. The Racketeer Influenced and Corrupt Organizations Act (RICO) allows lawsuits searching for triple damages associated with conspiracies involving a pattern of criminal activity. Ideal Steel Supply Corporation is accusing National Steel Supply, Inc. of illegally collecting profit for years by not collecting sales tax from customers who paid in cash; they then used the funds to open a store in Bronx, New York where Ideal Steel Supply has had a monopoly.