Unauthorized Access

News & Analysis as of

Data Privacy Considerations for Starting or Evaluating a Bounty Program

Data security officers typically look for security risks by monitoring reports from automated security systems, listening to employees’ reports of security issues, and/or auditing IT systems. There is a great deal of debate,...more

Epic Verdict in Trade Secrets Case

Last week, a federal jury in Wisconsin awarded almost $1 billion to Epic Systems Corporation in its trade secrets case against Indian consulting company Tata Consulting Services, Ltd., and its American unit, Tata America...more

Tennessee Amends Its Data Breach Notification Laws

Removes the Encryption Safe Harbor, Limits the Timing of Notice, and Expands “Unauthorized Persons” - Effective July 1, 2016, Tennessee becomes the first state to remove the encryption safe harbor from its data breach...more

Preventing Unauthorized Access to and Disclosure of Confidential Employee Information

Inherent in all employment relationships is the fact that employers are privy to all sorts of confidential information about their employees. For example, in order to do something as simple as paying an employee’s wages, an...more

Recent Decision Highlights Important Pleading Requirements for Computer Fraud and Abuse Act Claims

Ever since Iqbal and Twombly, it has become imperative that a complaint filed in federal court contains “sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v....more

Computer Fraud and Abuse Act Not Violated Unless Plaintiff Shows Defendant Had Intent To Defraud

In a recent Computer Fraud and Abuse Act case, the Seventh Circuit Court of Appeals affirmed the district court’s conclusion that the plaintiff had produced no evidence refuting the defendant’s contention that it honestly...more

Sanctions for Bringing a Computer Fraud and Abuse Act Claim?

Federal courts have continued to disagree on whether the Computer Fraud & Abuse Act ("CFAA") applies to employees who misuse confidential information or trade secrets obtained from an employer's computer system that the...more

UVA notifies employees of illegal access to human resources information through phishing scheme

The University of Virginia (UVA) has notified approximately 1,400 of its employees that unauthorized individuals were able to access its HR system and the personal information of 1,400 employees of the Academic Division. The...more

SCOTUS upholds Computer Fraud and Abuse Act conviction

The Supreme Court of the United States held on January 25, 2016, that an executive of a shipping company who hacked into his former employer’s computer system after he left the company was guilty under the Computer Fraud and...more

Breaking News: Hacker’s Conviction Affirmed Despite Lower Court’s Error

This week, the United States Supreme Court upheld a conviction under the Computer Fraud and Abuse Act despite the Court’s acknowledgement that the jury had been wrongfully instructed on the elements of the crime charged. ...more

Supreme Court Issues CFAA decision in Michael Musacchio v. United States

On Monday, January 25th, the Supreme Court issued the most recent Computer Fraud and Abuse Act decision in Michael Musacchio v. United States. After leaving his employer to start his own company, the defendant (a former...more

Recent Georgia Court of Appeals Case Highlights Alternative Theories of Relief in Unfair Competition Case

Beginning in law school, attorneys are trained to learn from reported appellate cases, and that education never stops. In a recent Georgia Court of Appeals case involving claims of unfair competition, Lyman v. Cellchem Int’l...more

Feds focus on damage to computers as basis for Computer Fraud and Abuse Act prosecution

Last week, a federal judge sentenced Yijia Zhang, a computer systems manager, to 31 months in federal prison for transferring thousands of his employer’s electronic files to European storage sites. The case highlights the...more

Ninth Circuit Poised to Address the “Without Authorization” Debate under the Computer Fraud and Abuse Action Again

Imagine if you could manage all of your social media platforms on one app. Believe it or not, there was an app for that (or, at least a website), created by a company named Power Ventures (“Power”). Back in 2008, Power...more

‘Cannibal Cop’ Decision Restrains Employers

Second Circuit ruling on data theft creates more inconsistency regarding federal law’s reach. In December, a divided panel of the U.S. Court of Appeals for the Second Circuit in U.S. v. Valle interpreted the Computer...more

Former Cardinals Scouting Director pleads guilty to hacking the Astros’ database

Last Friday, Chris Correa, the former scouting director of the St. Louis Cardinals, pleaded guilty in federal court in Texas for unlawfully accessing the Houston Astros’ database, which included scouting and draft...more

Stealing Bases Okay; Stealing Data Not So Much

On January 8, 2016, Christopher Correa, the former director of Baseball Development for the St. Louis Cardinals, pleaded guilty to each count of a five-count criminal information, charging him with felony violations of...more

Former Cardinals Scouting Director Pleads Guilty to Hacking Astros’ Computer Systems

Economic espionage and computer hacking can touch all industries and business types. Computer hacking is a federal crime, and federal prosecutors are aggressively targeting cases involving the unauthorized access of a...more

Former Morgan Stanley financial advisor sentenced

Just before Christmas, a New York federal judge sentenced Galen Marsh, the former Morgan Stanley financial advisor who downloaded client data to his home computer without permission, to three years of probation. He pled...more

Cybersecurity and Data Privacy and E-Discovery and Information Management: Second Circuit Draws Line Between Employees and Hackers...

Employers in New York face a heightened hurdle to holding employees legally accountable for theft and other misuse of company data after the Second Circuit’s recent decision in United States v. Valle. The Court has held that...more

The “Cannibal Cop” and Protection of Computerized Data

In an unusual criminal case, the Second Circuit Court of Appeals recently weighed in on an important question at the intersection of employment law and data security. The decision will likely have implications wherever...more

“Don’t Go There”: Second Circuit Makes it Harder to Bring Claims against Former Employees who Take Company Information without...

On December 3, the Second Circuit Court of Appeals became the most recent entrant into the circuit conflict on the question of when and under what circumstances an employee’s use of a computer to gain access to unauthorized...more

"Don’t Go There": Second Circuit Makes it Harder to Bring Claims against Former Employees who Take Company Information without...

On December 3, the Second Circuit Court of Appeals became the most recent entrant into the circuit conflict on the question of when and under what circumstances an employee’s use of a computer to gain access to unauthorized...more

The Threat From Within

Even as organizations hunker down for a long and expensive siege against attackers from cyberspace, a determined employee with the right kind of access can be as much of a threat, if not more. ...more

Employment Law Update - November 2015

Coming Changes to Overtime Exemptions Rules Will Have Serious Impact on Employers - The Fair Labor Standards Act ("FLSA") requires that employees be paid minimum wage and overtime pay at a rate of not less than one and...more

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