Waiting On Nosal…Combating Data Theft Under The Computer Fraud and Abuse Act In The Ninth Circuit

A recent California federal court decision has permitted an employer to pursue a former employee for alleged violations of the employer’s computer usage policies under the Computer Fraud and Abuse Act (“CFAA”), while an en banc Ninth Circuit panel considers the validity of such claims. The Ninth Circuit’s decision in the United States v. Nosal provided employers with a potentially powerful tool under the CFAA to combat data theft by employees and other insiders, only to see the decision rendered non-citable in October 2011 while an en banc Ninth Circuit panel reconsiders the issue.  A recent decision from federal district judge Larry Alan Burns of the United States District Court, Southern District of California, reflects a willingness to allow employers to continue to use the CFAA to combat data theft at least until the en banc panel rules in Nosal.

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