Wednesday, September 30, 2009

Traverse Internet Law Federal Court Report: August 2009 Hacking Lawsuits

The facts are unproven allegations of the Plaintiff and all commentary is based upon the allegations, the truthfulness and accuracy of which are likely in dispute.

FILED: 8/11/2009

This case provides us a glimpse into cyber-security and some of the techniques being used to identify, track, and ultimately pursue those accessing computers without authorization. Selling Source claims to have identified unauthorized accesses, brought in forensic computer investigators, commenced a technical investigation, and allowed the Defendants to continue alleged unauthorized access as the Plaintiff’s security personnel followed, tracked, and analyzed their activities over an extended period of time. The Plaintiff claims that “Red River Ventures” discovered the investigation by chance and at that point the cover was blown and the Plaintiff disconnected all computer access to the Defendants. Unauthorized access is a very serious matter and while the allegations in this lawsuit are merely claims that are being asserted, it is clear that the frequency and scope of computer accesses in the business world is a big problem. As a business, maintain vigilance and be prepared to react appropriately in this extremely complex environment.

The Plaintiff, Selling Source, LLC, develops technology and marketing solutions for the specialty finance and micro-loan industry. It is a “lead” marketing data source. The Defendants are alleged to have made an unsanctioned alteration to Selling Source’s proprietary software and accessed the Plaintiff’s databases without authorization for the purpose of obtaining valuable information.

The lawsuit includes claims for violation of the Computer Fraud and Abuse Act, violation of the Electronic Communications Privacy Act, trade secret misappropriation, breach of contract, and federal trademark infringement. Plaintiff requests that the Court issue temporary and permanent injunctive relief against the Defendants and require that the Defendants advise potential customers, employers, and other third parties that they provided information unlawfully obtained from the Plaintiffs. Additional relief requested includes the transfer of all documents, data programs, and information relating to Plaintiff’s proprietary, confidential, and trade secret information, restitution, compensatory damages, exemplary damages, attorneys’ fees, costs, interest, and any further relief the Court deems appropriate. Traverse Internet Law Cross-Reference Number 1353.

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