Opinion ID: 3048527
Heading Depth: 6
Heading Rank: 2

Heading: Ongoing Organization

Text: [11] We next conclude that plaintiffs sufficiently alleged an “ongoing organization,” either “formal or informal.” Turkette, 4980 ODOM v. MICROSOFT CORP. 452 U.S. at 583. An ongoing organization is “a vehicle for the commission of two or more predicate crimes.” Cagnina, 697 F.2d at 921-22 (internal quotation marks omitted) (quoting United States v. Elliott, 571 F.2d 880, 898 (5th Cir. 1978)). According to plaintiffs, Microsoft and Best Buy formed a vehicle for the commission of at least two predicate acts of fraud. Microsoft and Best Buy established mechanisms for transferring plaintiffs’ personal and financial information from Best Buy to Microsoft. That information then allowed Microsoft to activate plaintiffs’ Internet accounts without their knowledge or permission. These mechanisms enabled Microsoft to bill plaintiffs improperly for MSN services in 2001, 2002 and 2003. See United States v. Qaoud, 777 F.2d 1105, 1117 (6th Cir. 1985) (stating that “coordinated nature” of defendant’s activity supported finding of RICO enterprise). The alleged cross-marketing contract between Microsoft and Best Buy provides additional evidence of an ongoing organization. Plaintiffs allege that, in addition to the transfer of customers’ information from Best Buy to Microsoft, “Best Buy agreed to promote MSN and other Microsoft products in its stores and advertising.” In exchange, plaintiffs allege, “Microsoft invested $200 million in Best Buy and agreed to promote Best Buy’s online store through its MSN service.”