Second Circuit Stands By Medidata “Spoofing” Decision

The Second Circuit has rejected Chubb subsidiary Federal Ins. Co.’s request for reconsideration of the court’s July 6, 2018 decision, confirming that the insurer must cover Medidata’s $4.8 million loss under its computer fraud insurance policy.  In July, the court determined that the loss resulted directly from the fraudulent e-mails.  The court again rejected the insurer’s argument that the fraudster did not directly access Medidata’s computer systems.  But the court again rejected that argument, finding that access indeed occurred when the “spoofing” code in emails sent to Medidata employees ended up in Medidata’s computer system.

The Second Circuit’s summary order can be found here.  Our prior posts on the Medidata litigation and decisions are available through the following links:

July 10, 2018, Hunton Insurance Recovery Practice Head Explains Why Medidata Decision Affirming Phishing Coverage is “Common Sense”

July 9, 2018, 2nd Cir. Affirms Medidata’s Spoofing Loss is Covered Under Crime Policy’s Computer Fraud Provision

July 27, 2017, Hunton Insurance Head Walter Andrews Comments on Medidata Coverage Win

July 24, 2017, Chubb Owes $4.8M for Medidata Social Engineering Loss