Nexans Wires S.A. v. Sark-USA, Inc.
Plaintiffs Nexans Wires S.A. and Lacroix & Kress GmbH sued defendants Sark-USA, Inc. and Sarkuysan Elektrolitik Bakir Sanayii Ve Ticaret A.S., alleging unfair competition, trade secret misappropriation, and violations of the Computer Fraud and Abuse Act (CFAA). The core of the federal claim centered on allegations that defendants induced former employees of a customer, AEB, to steal plaintiffs' proprietary information from AEB's computer systems. The court converted the defendants' motion to dismiss the CFAA claims into a motion for summary judgment to assess if plaintiffs met the CFAA's jurisdictional "loss" threshold of $5,000. It determined that the claimed losses, consisting of executive travel expenses and lost revenue unrelated to computer service interruption, did not qualify as "loss" under the CFAA's definition. Consequently, the federal CFAA claims were dismissed, but the court exercised supplemental jurisdiction over the remaining state law claims.