In Schatzki v. Weiser Capital Management, No. 1:10-cv-04685-RWS-DCF, 2012 U.S. Dist. LEXIS 92442 (S.D.N.Y. July 3, 2012), the U.S. District Court for the Southern District of New York held that a complaint under the Computer Fraud and Abuse Act, 18 USCS §§1030 et seq., could not be sustained, when the plaintiff alleged that the defendant had copied data without or in excess of authorization, because the losses sustained through such copying did not satisfy the definitions of “damages” and “loss” found, respectively, in Sections 1030(e)(8) and (11) of the CFAA.
Inasmuch as the damages and loss alleged in the complaint are the most typical resulting from the copying of data, by finding that such damages and loss do not fall within the terms of the CFAA, the court has, in essence, rendered the CFAA a dead letter as it applies to most of the civil matters plaintiffs would seek to bring under it.
Background: The Argument Between the Circuits
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