As part of our ongoing effort to advise clients on significant
developments in cybersecurity that are likely to impact their
businesses, we have been actively reporting on the case of in FTC
v. Wyndham Worldwide Corporation, et al., pending before U.S.
District Judge Esther Salas in New Jersey. In April of this year we
issued a
client alert discussing the much anticipated April 7, 2014, decision by Judge Salas, which
rejected a direct challenge to the Federal Trade Commission's
("FTC") authority to police corporate cybersecurity
practices.
In a surprising development, on June 23, 2014, Judge Salas
issued a Memorandum Opinion and Order granting
Wyndham's motion seeking immediate appellate review of the
April 7 decision—without holding oral argument. Judge
Salas' reasons for supporting Wyndham's request to file an
appeal are instructive and suggest the FTC's authority to act
as the nation's chief cybersecurity enforcement agency is far
from resolved. Following a
