Zulily Hacking Charge Against Crocs Frivolous, Sanctionable

Clothing company U.S.A. Dawgs must pay $50,000 for filing a frivolous lawsuit accusing Crocs Inc. of hacking shopping website Zulily to deprive U.S.A Dawgs of sales, a federal court said.

The plaintiff’s attorney didn’t conduct a reasonable and competent inquiry before signing and filing the complaint, so the attorneys’ fees sanction is reasonable to deter future litigation abuses, Judge James C. Mahan, U.S. District Court for the District of Nevada, said.

U.S.A. Dawgs alleged that Crocs and its employees violated the Computer Fraud and Abuse Act by unlawfully accessing Zulily’s computer system or U.S.A. Dawgs’s vendor portal on that site. ...