Federal Government Interest in Cyber Continues: Congressional Hearings on the Colonial Pipeline Cyberattack

On May 7, 2021, Colonial Pipeline experienced a ransomware cyberattack on its corporate network. This attack, attributed to the DarkSide hacking group, led the company to temporarily halt the operation of its pipeline network—causing fuel shortages throughout the East Coast. Although highly publicized, the Colonial Pipeline cyberattack is not unique. In fact, the event was just one in a growing pattern of ransomware attacks against major U.S. companies and critical infrastructure. In light of these events, the issue of cyberattacks—particularly those involving ransomware—has become a key area of concern for federal lawmakers.

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The U.S. Innovation and Competition Act: Senate Passes Sweeping $250 Billion Bill to Bolster Scientific Innovation and Compete With China

On Tuesday, June 8, 2021, the U.S. Senate adopted by a 68-32 vote S. 1260, the United States Innovation and Competition Act, a nearly 2,400-page, $250 billion bill designed to boost U.S. semiconductor production, scientific research, development of artificial intelligence, and space exploration in the face of growing economic, technological, and military competition from China.

Senate Majority Leader Charles Schumer, D-N.Y., called the bill a “once-in-a-generation investment in American science and American technology.” The bipartisan bill, sponsored by Sens. Schumer and Todd Young, R-Ind., would invest more than $200 billion into U.S. scientific and technological innovation over the next five years. (more…)

TSA Issues Directive to Enhance Pipeline Cybersecurity

The U.S. Department of Homeland Security’s Transportation Security Administration (“TSA”) issued a Security Directive, “Enhancing Pipeline Cybersecurity” on May 28, laying out new cybersecurity requirements for operators of liquids and natural gas pipelines and LNG facilities designated as critical infrastructure.

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Major Executive Order on Cybersecurity Aims to Fortify Defenses and Coordinate U.S. Response to Growing Epidemic of Cyberattacks

The Biden administration issued a lengthy Executive Order, “Improving the Nation’s Cybersecurity,” on May 12, which it described as the “first of many ambitious steps” toward modernizing U.S. cybersecurity defenses. The White House simultaneously issued an explanatory fact sheet and background press call.

Pursuant to the Order, government agencies will be required to deploy multifactor authentication, encryption, endpoint detection response, and logging and operate under the principle of a “zero-trust” environment. A clear purpose of the Order is to improve the security of commercial software, including by establishing baseline security requirements based on industry best practices. As the White House press briefer stated, the Order will impose “the power of federal procurement to say, ‘If you’re doing business with us, we need you to practice really good — really good cybersecurity. And, most importantly, we really need you to focus on secure software development.’”

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Supreme Court Considers Injury and Typicality Questions in Case With Implications for Data Breach and Privacy Class Action Litigation

On March 30, 2021, the Supreme Court heard arguments in TransUnion LLC. v. Ramirez, a case in which Respondent Ramirez brought a class action lawsuit against Petitioner TransUnion, alleging that it incorrectly placed a flag on his credit report; the flag suggested that Ramirez was on a list of potential terrorists and criminals maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control (the “OFAC list”) because his name was similar to two individuals whose name were on that list. After Ramirez learned he had been flagged, he requested a copy of his credit report from TransUnion. TransUnion sent him a copy of his credit report, which did not include any reference to the OFAC list, and a second mailing indicating that his name was a potential match for a name on the OFAC list. Ramirez sued on behalf of himself and a class of over 8,000 individuals who received similar mailings, alleging that TransUnion violated the Fair Credit Reporting Act (“FCRA”) by (i) incorrectly flagging him as potentially appearing on the OFAC list and (ii) sending him the information about the potential match separately from his requested credit report, which he argued was confusing because the mailing regarding the OFAC list did not include FCRA-required information about how to dispute and correct the incorrect information.

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