Outside Counsel Fees May Be a Qualified Loss to Meet the CFAA’s $5000 Jurisdictional Requirement

In Animators at Law, Inc. v. Capital Legal Solutions, LLC, et al., Case No. 10-CV-1341 E.D.Va. (May 10, 2011) (unpublished) (TSE) two former employees of Animators’ abruptly left to join a competitor. Shortly thereafter, Animators’ president noticed that one of the former employee’s laptop containing sales and other confidential information was missing.   Thus, Animators initiated an investigation concerning whether defendants copied, deleted, or otherwise misused Animators’ confidential information after leaving Animators’ employment, including an (i) outside forensic analysis, (ii) internal investigation, and (ii) outside counsel investigation. Capital Legal disputed whether the outside forensic analysis constituted a qualified loss under the CFAA, because Animators did not “actually pay” cash for these services, as well as the propriety of the other two investigations. 

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