Employer Takeaways From SEC V. Huang

Law360, New York (October 14, 2015, 2:58 PM EDT) -- Can employees be compelled to disclose the passcodes for employer-issued devices used by the employees in the course of their employment? Not necessarily, according to the United States District Court for the Eastern District of Pennsylvania. In Securities and Exchange Commission v. Huang, No. 15-269 (E.D. Pa. Sept. 23, 2015), the court denied the U.S. Securities and Exchange Commission's request for an order compelling two former data analysts for Capital One Financial Corp., a credit-card issuer bank, to disclose the secret personal passcodes for smartphones owned by their former employer.

The data analysts were accused by the SEC of insider trading...

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