Partners Successful on Appeal in Third Circuit Federal RICO Case

Pittsburgh Partner Trisha A. Gill and Chicago Partner Bradley E. Faber obtained a favorable dismissal of a federal Racketeer Influenced and Corrupt Organizations (RICO) lawsuit asserted against our accounting firm client.

In 2022, a Pennsylvania investment group accused their former business partner, the head distiller of a craft distillery, of racketeering, fraud and trade secret violations. Plaintiffs also named several of the distiller’s colleagues and vendors as defendants, including our client, the distiller’s accountant.

Plaintiffs initially filed suit against the head distiller in the United States District Court for the Western District of Pennsylvania. Although some defendants settled, others, including our client, moved to dismiss. In September 2023, the District Court dismissed the case against all remaining defendants, including our client, stating that there were “no plausible allegations establishing that the numerous individuals and entities acted together as a RICO enterprise.”

Following the lower court’s dismissal, Plaintiffs appealed to the United States Court of Appeals for the Third Circuit. The Appellate Court affirmed the District Court’s dismissal, including its finding that Plaintiffs failed to support their claims under the federal RICO Act, the Computer Fraud and Abuse Act and the Defend Trade Secrets Act.

Subsequently, Plaintiffs filed a petition for rehearing en banc before the Third Circuit, and the Appellate Court denied that petition in August 2024, ruling in favor of our client.

Trisha Gill focuses her practice on defending employers, including accountants, attorneys, real estate agents and financial institutions against professional liability matters. She has tried numerous cases to jury verdict and has successfully defended clients to achieve favorable verdicts in appellate court cases.

Brad Faber concentrates his law practice in the areas of civil and commercial litigation. His legal focus includes advising and representing businesses, financial institutions and individuals in labor and employment litigation disputes in both federal and state court and before federal and state agencies.