Fifth Circuit Case Shows Misappropriation Allegations May Trigger Broader RICO Exposure

In 2016, Congress passed the Defend Trade Secrets Act (DTSA), which, among other things, amended the longstanding statute used to combat organized crime: the Racketeer Influenced and Corrupt Organizations Act (RICO). Since then, some plaintiffs bringing trade secret-based RICO claims have struggled to satisfy RICO’s pleading requirements, particularly the need to allege a continuous pattern of racketeering activity — an important element in these cases.

Nearly a decade after the DTSA’s passage, few published appellate decisions have addressed RICO’s pattern requirement where trade secret misappropriation is the sole predicate basis. However, on June 9, 2026, the Fifth Circuit added to the case law by examining whether involvement in other trade secret cases may support a RICO pattern.