A district court in Tennessee recently concluded in Wachter Inc. v. Cabling Innovations LLC that two former employees who allegedly shared confidential company information found on the company’s computer system with a competitor did not violate the Computer Fraud and Abuse Act (CFAA). The CFAA expressly prohibits “intentionally accessing a computer without authorization or exceeding … Continue Reading
The United State Supreme Court recently denied certiorari in Nosal v. United States, 16-1344, declining to weigh in on the scope of unauthorized access under the Computer Fraud and Abuse Act (“CFAA”). The Ninth Circuit held in Nosal that David Nosal violated the CFAA by using his past assistant’s password to access his former employer’s … Continue Reading
Last August, we reported on a Ninth Circuit case in which a former employee was convicted of a crime under the Computer Fraud and Abuse Act (“CFAA”) for accessing and downloading information from his former company’s database “without authorization.” The former employee has now asked that the U.S. Supreme review the Ninth Circuit’s decision. The … Continue Reading
A company can recover damages from its former employee in connection with his hacking into its payroll system to inflate his pay, accessing its proprietary files without authorization and hijacking its website, a federal court ruled. Tyan, Inc. v. Yovan Garcia, Case No. CV 15-05443- MWF (JPRx) (C.D. Cali. May 2, 2017). The Defendant worked … Continue Reading
Many companies have experienced the departure of an employee and the elimination of that former employees access to the company’s computers and networks. In the recent case of USA v. Nosal, D.C. No. 3:08-cr-00237-EMC-1 (July 5, 2016), the Ninth Circuit Court of Appeals was presented with the following facts: Nosal, a former employee of Korn/Ferry … Continue Reading
As the year draws to a close, employer claims under the Computer Fraud and Abuse Act (“CFAA”) against departing employees for stealing or otherwise diverting employer information without authorization to do so are dying slow deaths in many federal courts across the nation. As noted over on the Non-Compete and Trade Secrets Report, the U.S. … Continue Reading
An employer had no cause of action under the Computer Fraud and Abuse Act (“CFAA”) against an employee who accessed its computer systems to misappropriate confidential and proprietary business information to start a competing business, the U.S. District Court for the Southern District of Ohio has held. Cranel Inc. v. Pro Image Consultants Group, LLC, … Continue Reading
In order to be a “protected computer” within the meaning of the federal Computer Fraud and Abuse Act (the “CFAA”), the computer must be used in interstate commerce at the time of the allegedly unauthorized access of the computer, the U.S. District Court for the District of Massachusetts held. Pine Env. Servs., LLC v. Charlene … Continue Reading
As previously discussed, the federal appeals court in San Francisco had reinstated an indictment charging a former employee of Korn/Ferry International, Inc., with violations of the Computer Fraud and Abuse Act, 18 U.S.C. § 1030 (the “CFAA”) for trying to start a business that would compete with his former employer. Now, however, at the urging … Continue Reading
The federal appeals court in San Francisco has reinstated an indictment charging a former employee of Korn/Ferry International, Inc., with violations of the Computer Fraud and Abuse Act, 18 U.S.C. § 1030 (the “CFAA”) in trying to start a business that would compete with his former employer. . The indictment in United States v. Nosal, … Continue Reading
A recent criminal case involving a government employer harmed by a computer hacking incident affecting its personnel records may provide support for companies seeking to recover the costs they incur when taking appropriate steps to investigate these data incidents and mitigate harm when a breach is found to have occurred.… Continue Reading
What is a company’s recourse when a former employee deletes e-mails and other company electronic information before he leaves? A case from Indiana provides a lesson. When Meridian Financial Advisors began serving as Receiver for bankrupted OCMC, Inc., it took possession of a number of OCMC computers, including one belonging to Joseph A. Pence, OCMC’s President … Continue Reading
Based on recent events, the University of East Anglia likely will agree that data privacy and security requires a comprehensive approach, as data breaches are not limited to incidents involving personal information and identity theft. In fact, the effects of a breach to an organization’s information systems involving confidential company information can be far worse on the … Continue Reading
