“Click Fraud” Allegations Found Insufficient Under Computer Fraud and Abuse Act, But Personal Jurisdiction Found Where Defendant Company’s Website Deliberately Targeted Consumers Within the Forum State

A federal district court for the Northern District of California recently held in a “competitor click fraud” case that a mere assertion of a violation of the Computer Fraud and Abuse Act claim without sufficient factual details regarding any inside or outside “hacking” is insufficient to establish subject matter jurisdiction over the action. (Incorp Services Inc. v. IncSmart.Biz Inc., No. 11-CV-4660-EJD-PSG, 2012 WL 3685994 (N.D. Cal. Aug. 24, 2012) The case also presented a novel personal jurisdiction issue involving alleged online false advertising where neither the defendants nor the plaintiff resided in California. The court found that personal jurisdiction existed because the defendant company’s website deliberately targeted California consumers and continuously exploited the California marketplace.

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