What is a RICO Lawsuit? How to Triple Your Damages and What the New Supreme Court Ruling Means
A RICO lawsuit allows victims of racketeering to sue under the federal Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. § 1962) and recover triple their damages. You need proof of at least two related crimes within 10 years connected to an enterprise. After April 2025’s Supreme Court ruling in Medical Marijuana v. Horn, plaintiffs can now claim treble damages for business losses stemming from personal injuries.
What Does RICO Stand For?
RICO stands for Racketeer Influenced and Corrupt Organizations Act, passed in 1970 to combat organized crime. While originally targeting the Mafia, RICO now applies to any enterprise conducting a pattern of racketeering—from corporations to individuals engaged in fraud, extortion, or other predicate crimes.
Who Can File a RICO Lawsuit?
Anyone injured in their business or property by racketeering activity can file a civil RICO claim. This includes:
- Business owners harmed by competitor fraud
- Consumers defrauded by companies
- Employees victimized by workplace schemes
- Investors damaged by financial fraud
- Individuals who lost money to illegal gambling operations
You don’t need to be the direct victim. RICO allows suits if you can prove the pattern of racketeering caused your economic harm.
What Qualifies as a RICO Violation?
RICO violations require three core elements:
Pattern of Racketeering Activity At least two predicate crimes within 10 years that are related or show continuity. Courts use the “continuity plus relationship” test—crimes must be connected by similar victims, methods, or purposes, and suggest ongoing criminal conduct.
Predicate Acts RICO lists 35 specific crimes including:
- Mail and wire fraud
- Money laundering
- Bribery and extortion
- Gambling offenses
- Drug trafficking
- Murder and kidnapping
- Securities fraud
- Obstruction of justice
Enterprise Connection The racketeering must be connected to an enterprise—any group of people or organization conducting affairs together, whether legitimate businesses, criminal organizations, or informal associations.
Game-Changer: Supreme Court Opens Door to More RICO Claims
The April 2, 2025 Medical Marijuana v. Horn decision fundamentally changed RICO litigation. The Supreme Court resolved a circuit split about whether plaintiffs may recover damages under RICO for business or property harm that derives from a personal injury.
Douglas Horn sued after testing positive for THC following consumption of a CBD product marketed as containing zero THC. He lost his trucking job. The Court ruled 5-4 that while RICO doesn’t allow recovery for pain and suffering, it does permit claims for economic losses—like lost wages or business closure—that result from personal injuries.
This decision broadens the types of harms that can be addressed by civil RICO claims. RICO cases increased by almost 20% in the year ending March 31, 2024, compared to the previous year.
What Are Treble Damages?
Treble damage provisions allow courts to triple the amount of compensatory damages. If you prove $100,000 in actual losses from racketeering, the court awards $300,000.
Under 18 U.S.C. § 1964(c), successful plaintiffs recover “threefold the damages” plus attorney’s fees and costs. This makes RICO powerful—and dangerous for defendants.
Treble damages apply only to proven economic harm. Without actual damages, there is no path to financial recovery through a civil RICO lawsuit.
Recent High-Profile RICO Cases
Drake Gambling Lawsuit (December 2025) Drake, Adin Ross, and Stake.us face a Virginia federal class action alleging they promoted illegal gambling and used the platform’s transfer features to artificially inflate Drake’s streaming numbers. The plaintiffs are seeking class certification, damages not less than $5 million, and as a RICO violation, it would be eligible for triple damages.
Uber vs. Law Firms (2025) Uber filed three federal RICO lawsuits in New York, Florida, and California against personal injury law firms and doctors, alleging they fraudulently inflated medical bills through coordinated lien schemes.
How RICO Litigation Works
Step 1: Filing the Complaint Plaintiffs must plead specific facts showing the pattern of racketeering, not just conclusory allegations. Courts apply heightened pleading standards for fraud-based RICO claims.
Step 2: Proving Your Case You must establish:
- Two or more predicate acts
- Related criminal conduct
- Continuity over time or threat of future criminal activity
- An enterprise
- Injury to business or property
- Proximate causation between racketeering and your damages
Step 3: Damages Calculation Document all economic losses directly caused by the racketeering. Actual harm sustained due to racketeering activity forms the basis of any award. Courts then triple this amount if you prevail.
Step 4: Settlement or Trial Most RICO cases settle before trial given the treble damages exposure. Settlement negotiations often focus on avoiding the stigma and financial risk of RICO liability.
What Evidence Do You Need?
Strong RICO claims require:
- Documentary evidence of the predicate crimes (emails, financial records, contracts)
- Proof of at least two separate criminal acts
- Timeline showing crimes occurred within 10 years
- Evidence linking defendants to an enterprise
- Calculation of your actual economic losses
- Proof the racketeering directly caused your damages
Pattern evidence is critical. Courts need to see the crimes were related—same participants, similar victims, common methods, or connected purposes.
Statute of Limitations for RICO Claims
Federal RICO claims must be filed within four years of discovering the injury. State RICO statutes vary—some allow up to six years.
The clock starts when you discover (or should have discovered) both the injury and its connection to racketeering activity.
RICO vs. Other Legal Remedies
RICO vs. Fraud Claims Standard fraud claims don’t offer treble damages or attorney’s fees. RICO requires proving a pattern of crimes, not just one fraudulent act.
RICO vs. Antitrust Both allow treble damages, but RICO covers broader criminal conduct while antitrust focuses on anticompetitive behavior.
RICO vs. State Claims 33 states have their own RICO statutes, often broader than federal law. Some state versions cover additional crimes and have different procedures.
Three Key Constraints on RICO Claims
Even after Medical Marijuana, courts limit RICO through:
1. Proximate Causation You must prove direct causation between racketeering and your injury. Speculative or indirect harm doesn’t qualify.
2. Pattern Requirement Harm resulting from a single tort is not a ticket to federal court for treble damages. One-time incidents don’t establish a pattern.
3. Business or Property Injury Not every monetary loss qualifies. The Supreme Court left open whether lost wages count as “business” injury and whether medical expenses are “property” damage.
What Happens If You Win?
Successful RICO plaintiffs receive:
- Treble damages – Three times actual economic losses
- Attorney’s fees – Full reimbursement of reasonable legal costs
- Court costs – Filing fees and litigation expenses
- Injunctive relief – Court orders stopping future racketeering
Defendants must also forfeit any proceeds obtained through racketeering.
Should You File a RICO Lawsuit?
Consider RICO if:
- You’ve suffered significant economic losses (not just personal injury)
- Multiple related crimes occurred over time
- You have strong documentary evidence
- The potential recovery justifies complex litigation
- You can prove direct causation to an enterprise’s racketeering
Don’t pursue RICO if:
- Your claim involves one isolated incident
- You lack proof of pattern or enterprise
- Your damages are primarily personal injury
- You can’t establish the required criminal conduct
Frequently Asked Questions
Can I file a RICO lawsuit without a criminal conviction?
Yes. Civil RICO doesn’t require prior criminal charges or convictions. You must prove the predicate crimes occurred by a preponderance of evidence (more likely than not), not beyond reasonable doubt.
How long do RICO cases take?
RICO litigation typically takes 2-4 years from filing to resolution. Complex cases involving multiple defendants and extensive discovery can take longer.
What’s the difference between criminal and civil RICO?
Criminal RICO is prosecuted by federal prosecutors and can result in 20 years prison per violation. Civil RICO is filed by private plaintiffs seeking money damages.
Can RICO apply to legitimate businesses?
Yes. RICO covers any enterprise, including corporations, that conducts its affairs through a pattern of racketeering. Legitimate businesses can be RICO enterprises if they engage in systematic criminal conduct.
What percentage of RICO cases go to trial?
Most RICO cases settle before trial. Critics argue that plaintiffs use the statute to coerce settlements by threatening the disproportionate financial burden of treble damages.
Does RICO apply to online fraud?
Yes. Wire fraud and mail fraud are RICO predicates. Online schemes involving systematic fraud through emails, websites, or electronic transfers can support RICO claims.
Can I recover for emotional distress under RICO?
No. RICO only allows recovery for economic injury to business or property. Emotional distress, pain and suffering, and similar personal injuries are excluded.
What if the defendants are in different states?
RICO allows nationwide service of process. You can sue defendants from multiple states in one federal court if venue is proper and the case involves interstate commerce.
This article provides general information about RICO lawsuits and should not be considered legal advice. Consult with an attorney experienced in RICO litigation to evaluate your specific situation.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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