Space Systems/Loral, LLC v. Orbital Atk, Inc.

306 F. Supp. 3d 845
CourtDistrict Court, E.D. Virginia
DecidedFebruary 2, 2018
DocketCivil Action No. 4:17–cv–00025–RAJ–LRL
StatusPublished
Cited by24 cases

This text of 306 F. Supp. 3d 845 (Space Systems/Loral, LLC v. Orbital Atk, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Space Systems/Loral, LLC v. Orbital Atk, Inc., 306 F. Supp. 3d 845 (E.D. Va. 2018).

Opinion

Raymond A. Jackson, United States District Judge

This matter is before the Court on Defendant's Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). Both parties have filed memoranda supporting their respective positions. Having reviewed the parties' filings, this matter is *849ripe for judicial determination. For the reasons set forth below, Defendant's Motion is GRANTED IN PART AND DENIED IN PART.

I. BACKGROUND

Space Systems/Loral LLC, ("SSL" or "Plaintiff"), is a limited liability company that specializes in the design and manufacturing of geostationary satellites, space systems, and robotics technology. ECF No.1. Orbital ATK, Inc., ("Orbital" or "Defendant") is a Virginia based company that performs similar work. Id. at 6. In 2015, the National Aeronautics and Space Administration ("NASA") solicited project proposals through an RFP entitled "Utilizing Public Private Partnerships to Advance Tipping Point Strategies." Id. at 2. This project, commonly referred to as "Tipping Point," was aimed at expanding opportunities and capabilities in the commercial space industry through public-private partnerships. Id ; ECF No. 8 at 8. NASA awarded SSL a contract for its "Dragonfly" project and Orbital for its "CIRAS" project respectively. ECF No. 1 at 3; No. 8 at 8. To facilitate the sharing of information with the various contractors, NASA established the "NX" server. ECF No. 8 at 8.

On December 6, 2016, NASA informed SSL that a data breach occurred that included proprietary data from SSL located on a NASA NX server at NASA's Langley Research Center. ECF No.1 at 3. NASA provided further updates and informed SSL that an Orbital employee committed the breach. Id. at 4. SSL also learned that at least four files containing its proprietary data had been opened/and or viewed by as many as six Orbital employees. Id. Following up on this information, SSL contacted Orbital regarding the details and scope of the breach, and Orbital provided a response. ECF No. 1 at 4-6; No. 8-2 at 1. SSL filed this action seeking judicial intervention to protect its confidential and proprietary information and damages as a result of Orbital's alleged unauthorized access. ECF No. 1 at 5-6.

II. LEGAL STANDARD

Federal Rule of Civil Procedure 12(b)(6) provides for the dismissal of actions that fail to state a claim upon which relief can be granted. For purposes of a Rule 12(b)(6) motion, courts may only rely upon the complaint's allegations and those documents attached as exhibits or incorporated by reference. See Simons v. Montgomery Cty. Police Officers , 762 F.2d 30, 31 (4th Cir. 1985). Courts will favorably construe the allegations of the complainant and assume that the facts alleged in the complaint are true. See Erickson v. Pardus , 551 U.S. 89, 93-94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007) ; Mylan Laboratories, Inc. v. Matkari , 7 F.3d 1130, 1134 (4th Cir. 1993). A court will only grant a motion to dismiss if "it appears to a certainty that the plaintiff would be entitled to no relief under any state of facts which could be proved in support of his claim." Johnson v. Mueller , 415 F.2d 354 (4th Cir. 1969).

Although a complaint need not contain detailed factual allegations, "[f]actual allegations must be enough to raise a right to relief above the speculative level on the assumption that all the allegations in the complaint are true." Bell Atl. Corp. v. Twombly , 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). If the factual allegations alleged by the plaintiff do not nudge the plaintiff's claims "across the line from conceivable to plausible, their complaint must be dismissed." Id. at 570, 127 S.Ct. 1955. A plaintiff however is generally permitted to plead facts based on "information and belief" if such plaintiff is in a position of uncertainty because the necessary evidence is controlled by the defendant.

*850See Raub v. Bowen , 960 F.Supp.2d 602, 615 (E.D. Va. 2013).

III. DISCUSSION

Count I: Violation of the Computer Fraud and Abuse Act

The Computer Fraud and Abuse Act ("CFAA"), 18 U.S.C. § 1030 et seq. (2008), is primarily a criminal statute, see A.V. ex rel Vanderhye v. iParadigms, LLC , 562 F.3d 630, 645 (4th Cir. 2009), but a person who suffers damages or loss may bring a civil action for compensatory damages, injunctive or other equitable relief if the conducts involves one of the factors set forth in (I), (II), (III), (IV), or (V) of subsection (c)(4)(A)(i),1 see 18 U.S.C. § 1030(g) (2008).

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306 F. Supp. 3d 845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/space-systemsloral-llc-v-orbital-atk-inc-vaed-2018.