U.S. DISTRICT COURT ISSUES RULING IN AMERICAN’S MISAPPROPRIATION OF DATA CASE
August 23, 2022
On July 15, 2022, the U.S. District Court for the Northern District of Texas (hereinafter the “Court”) issued a ruling granting in part and denying in part a Motion filed by Red Ventures, LLC and The Points Guy, LLC (the “Defendants”) to have four claims brought by American Airlines (“American”) alleging the misappropriation of data from its servers dismissed. American claimed that the Defendants had misappropriated customer data from its servers by integrating data into the Defendants’ “The Points Guy App” (“TPG App”) without permission. American alleged that the misappropriation occurred after discussions between the parties on a proposed deal that would have involved placing American’s AAdvantage member loyalty program customer data in the TPG App. American claims that it declined to move forward with the deal after citing data security concerns, but that the Defendants still went on to incorporate its AAdvantage program data, as well as its intellectual property, into the TPG App.
The Court considered a number of claims, ultimately deciding in favor of American on two: its Computer Fraud and Abuse Act (“CFAA”) and Texas Harmful Access by Computer Act (“THACA”) claims after finding that American had stated plausible CFAA violation and THACA violation claims in its complaint for relief. Accordingly, American’s CFAA and THACA claims will be considered at a later date but its remaining claims were dismissed with prejeduce.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-66652).
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