Stolowitz v. Nuance Communications, Inc.

District Court, S.D. Florida·Decided June 27, 2022·No. 1:22-cv-20234·Unknown

Opinion

United States District Court for the Southern District of Florida

Marc Stolowitz, Plaintiff, ) ) v. ) Civil Action No. 22-20234-Civ-Scola ) Nuance Communications, Inc., ) Defendant. )

Order Granting Motion to Dismiss Plaintiff Marc Stolowitz complains his former employer, Defendant Nuance Communications, Inc., provided false and fraudulent information to the Federal Bureau of Investigation and the United States Attorney’s Office for the Southern District of Florida in retaliation against him for identifying and planning to report a cyber-security weakness in Nuance’s computer system. (Compl., ECF No. 1-1, 4.) Stolowitz initially filed his complaint in state court, in December 2021, seeking relief under various Florida tort and statutory theories: malicious prosecution; defamation; fraud; retaliation under the Florida Whistleblower Act; and invasion of privacy. Nuance thereafter removed this case, to this Court, based on the Court’s diversity jurisdiction. Nuance now seeks dismissal of Stolowitz’s claims, submitting, primarily, that Stolowitz has failed to state a claim under any of the theories set forth in his complaint. (Def.’s Mot. to Dismiss, ECF No. 5.) Stolowitz opposes the motion (Pl.’s Resp., ECF No. 8). Nuance has timely replied (Def.’s Reply, ECF No. 14) and the motion is ripe for determination. After review, the Court agrees with Nuance and grants its motion (ECF No. 5), thus dismissing Stolowitz’s case. 1. Background* Stolowitz worked for Nuance, a computer software technology company, from 2011 to 2016, as a software engineer. (Compl. ¶¶ 4, 7.) Stolowitz was terminated in October 2016 as part of a reduction in force. (Id. ¶ 25.) Both during and after his employment, Stolowitz had concerns about the way Nuance handled the protected medical information of the patients whose records Nuance maintained for various health care providers. (Id. at 1, ¶ 28.) Over a year after his termination, in November 2017, Stolowitz used what he describes as “publicly available” uniform resource locators, or “urls,” to access the

* The Court accepts the complaint’s factual allegations, as set forth below, as true for the purposes of evaluating the motion to dismiss. Brooks v. Blue Cross & Blue Shield of Fla., Inc., 116 F.3d 1364, 1369 (11th Cir. 1997). transcribed medical records of some 45,000 patients from 137 medical facilities, all of which were Nuance’s clients. (Id. ¶¶ 8, 29–30, 37.) Stolowitz downloaded the records onto a USB drive, organizing the information into spreadsheets, noting the medical facility from which each record had issued; the record’s assigned file number; the location on Stolowitz’s storage media where the information was maintained; and the publicly accessible url, or webpage address, from Nuance’s system, where the medical record was located. (Id. ¶ 34.) Stolowitz never disclosed the records, but says he simply kept the information, secured, waiting to see if Nuance would ever resolve the url-accessibility issue. (Id. ¶ 31.) Nuance learned of Stolowitz’s access and downloads from its network (id. ¶ 40) and contacted the FBI and USAO, beginning in December 2017 (id. ¶ 42). Nuance provided the FBI with Stolowitz’s personnel file and the FBI and the USAO opened a criminal investigation, targeting Stolowitz for violations of the Computer Fraud and Abuse Act. (Id. ¶¶ 43–44.) As part of that investigation, the FBI and USAO obtained a warrant from this Court, authorizing the FBI to search Stolowitz’s home and to seize his personal computer equipment and electronic storage media. (Id. ¶ 45.) The FBI executed the warrant on January 25, 2018, and seized the identified items. (Id. ¶ 46.) Ultimately, everything seized was eventually returned to Stolowitz and no charges were ever filed against him. (Id. ¶ 47.) In May 2018, Nuance filed its required quarterly report with the Securities and Exchange Commission, recounting the incident as follows:

[I]n December 2017, an unauthorized third party illegally accessed certain reports hosted on a Nuance transcription platform. This incident was limited in scope to records of approximately 45,000 individuals and was isolated to a single transcription platform that was promptly shutdown. Customers using that platform were notified of the incident and were migrated to our eScription transcription platforms. We also notified law enforcement authorities and have cooperated in their investigation into the matter. . . . This incident did not have a material effect on our financial results for the six months ended March 31, 2018 and is not expected to have a material effect on our financial results for future periods. Future cybersecurity or data privacy incidents could have a material adverse effect on our results of operations. See “Risk Factors - Cybersecurity and data privacy incidents or breaches may damage client relations and inhibit our growth.”

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Stolowitz v. Nuance Communications, Inc., (S.D. Fla. 2022).

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