CFAA's $5,000 Threshold

In a federal suit, Nexans Wires alleged a competitor induced individuals to engage in economic espionage, based on classic Computer Fraud and Abuse Act violations: theft of and damage to computer data. Though the allegations fit neatly into causes of action under the CFAA, a judge granted summary judgment to the defendant because Nexans Wires couldn't establish the statutory threshold that it had suffered $5,000 in "loss." The case shows how an unfamiliarity with CFAA can be a trap for the unwary.

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