Computer Fraud and Abuse Act Remains Viable Claim For Employers To Assert Against Employees Who Steal Company Data

The Computer Fraud and Abuse Act (“CFAA”) remains a potent weapon for employers to use against disgruntled employees who steal company data. The Sixth Circuit in U.S. v. Batti, No. 09-2050, 2011 WL 111745 (6th Cir. 2011)recently upheld the criminal conviction of an employee who allegedly accessed, copied, and leaked confidential information that belonged to his employer’s CEO. The court also awarded the employer restitution for private security investigation costs, despite parallel government investigations. Unfortunately, the court provided no clues into its position regarding the hotly contested “without authorization” interpretation that has split the circuits.

Luay Batti worked in the IT department of Campbell-Ewald, a Michigan advertising company. While employed, Batti allegedly obtained without authorization confidential information that belonged to Campbell-Ewald’s CEO. Six months later, Batti met with Campbell-Ewald’s General Manager to complain about the IT department’s management. Batti also allegedly provided the General Manager a copy of the CEO’s files to reveal the weaknesses in the company’s computer security. Campbell-Ewald fired Batti and contacted the police.

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