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Asserting Damages for Data Piracy Under the CFAA

By Shari Claire Lewis

Data often is the lifeblood of a business. When a database is breached in one way or another, the results can be devastating — especially if the data falls into the hands of a competitor.

Many companies suffering this kind of loss turn to litigation. Perhaps in an effort to obtain federal court jurisdiction, they may assert claims under the Computer Fraud and Abuse Act (CFAA), 18 U.S.C. §1030, which prohibits improperly accessing a protected computer. There is, however, a growing consensus in the U.S. Court of Appeals for the Second Circuit that recovery of certain forms of damages under the CFAA simply is not permitted — making it difficult to bring causes of action under the CFAA that are able to withstand motions to dismiss.

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