July 14, 2015 by Kaitlyn Piazza at 12:00:00 pm
The baseball world has been buzzing about the federal investigation into whether St. Louis Cardinals employees illegally gained access to a Houston Astros' database containing proprietary information on players. Last week, the Cardinals fired the team's scouting director, although he denies wrongdoing. CNN has reported that federal investigators are recommending charges against at least one St. Louis employee. "Data security is an FBI priority, so this investigation is not surprising if there is any evidence of illegal access," says Houston's Sheryl A. Falk of Winston & Strawn LLP, who has handled data breach investigations and theft of trade secrets litigation.
- Writes The New York Times: Investigators have uncovered evidence that Cardinals employees broke into a network of the Astros that housed special databases the team had built, law enforcement officials said. Internal discussions about trades, proprietary statistics and scouting reports were compromised, said the officials, who were not authorized to discuss a continuing investigation. The officials did not say which employees were the focus of the investigation or whether the team’s highest-ranking officials were aware of the hacking or authorized it. The investigation is being led by the F.B.I.’s Houston field office and has progressed to the point that subpoenas have been served on the Cardinals and Major League Baseball for electronic correspondence.
- Writes Fox Sports: ST. LOUIS -- High-level executives of the St. Louis Cardinals were not involved in the hacking of the Houston Astros' player personnel database, an attorney hired by the team said Wednesday, citing an internal review.
- Writes American Lawyer: On the cleated heels of Deflategate and soccer's global corruption crisis, the scandal-prone pro sports community is in need of legal advice yet again—this time related to alleged Major League foul play involving the St. Louis Cardinals. The New York Times reported Tuesday that the Federal Bureau of Investigation is probing Cardinals personnel for allegedly hacking into Houston Astros databases that house team strategies, including information on scouting and trades.
"Hacking into the Astros database suggests a violation of the Computer Fraud and Abuse Act, which could mean a fine and/or imprisonment of up to five years. A civil suit also is a possibility." Falk says it is more common for a company to suffer a cyberattack "from a malicious insider, such as a former employee - someone with a grudge or someone leaving to join a competitor. So it's important to have monitoring systems that can spot suspicious computer access right away."
Law Firm News
Tex Parte Blog
WSJ Law Blog