Opinion ID: 2585
Heading Depth: 5
Heading Rank: 2

Heading: Nexicon

Text: Nexicon argues that the City erroneously named it as a defendant because Cyco. net, Inc. (Nevada) sold its Internet tobacco retail business, Cyco.net, Inc. (New Mexico), to American Indian CigCo in 2003. Cyco.net, Inc. (Nevada), then changed its name to Nexicon, which is a publicly traded company engaged in network security and billing management. [29] Moreover, Richard Urrea claims to have terminated a consultancy agreement with American Indian Cigco and ceased doing business with the company, and thus argues that Nexicon should not be held liable. Whatever the merits of these factual averments, we must accept the City's allegations as true at this stage, and dismissal is not warranted on these bases. Nexicon defendants also argue that the City failed to make a showing that Nexicon exercised any control over American Indian CigCo's shipments of cigarettes. The City is not required to make a showing that Nexicon exercised any control over American Indian CigCo's shipments of cigarettes at this stage. As explained, to show the requisite level of management, the City must allege that the defendants `conduct[ed] or participate[d], directly or indirectly, in the conduct of such enterprise's affairs through a pattern of racketeering activity. Satinwood, 385 F.3d at 175-76 (quoting 18 U.S.C. § 1962(c)). By alleging that Nexicon and American Indian CigCo have entered profit sharing and employment agreements, the City has adequately pled that Nexicon has some part in directing the enterprise's affairs. Reves, 507 U.S. at 179, 113 S.Ct. 1163.