Delaware Chancery Court Weighs in on Interpretation of Computer Fraud and Abuse Act

 May 17, 2019

                In AlixPartners, LLP v. Benichou, No. 2018-0600-KSJM, 2019 WL 2067362 (Del. Ch. May 10, 2019), the Delaware Court of Chancery, in an unpublished opinion, held that an employee’s alleged copying of proprietary company information onto an external hard drive during the course of his employment, and alleged use of such information for the benefit of his new employer, did not support the old employer’s claim under the federal Computer Fraud and Abuse Act (“CFAA”).  In its opinion, the court drew a distinction between copying that may have occurred before the employee’s resignation/termination (which was not actionable) and after resignation/termination (which was actionable).