I. Background

This is an insurance coverage action. In May 2015, plaintiff Ubiquiti Networks, Inc.’s (“Ubiquiti”) CAO, Rohit Chakravarthy (“Chakravarthy”), received several emails from someone impersonating Ubiquiti’s CEO, Robert Pera. Chakravarthy additionally received emails from someone impersonating attorney Tom Evans, and he directed Chakravarthy to make 14 wire transfers over a 17 day period totaling $46,683,232. Chakravarthy departed Ubiquiti soon after the loss, and Ubiquiti sought coverage for the alleged loss, pursuant to the Computer Fraud and Funds Transfer Fraud coverages of the Commercial Crime Policy issued by defendant National Union Fire Insurance Company of Pittsburgh, PA (“Insurer”). Insurer denied coverage purportedly because the alleged loss did not fall within either insuring agreement. Ubiquiti then filed a complaint against Insurer, asserting causes of action for breach of insurance contract and breach of the implied covenant of good faith and fair dealing.

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