Software company lacked ‘downstream’ liability for data breach

The [1st U.S.Circuit Court of Appeals](https://archive.is/o/L7ahd/https://masslawyersweekly.com/tag/1st-u-s-circuit-court-of-appeals/?taxo-tag-body) affirmed summary judgment that Barracuda Networks could not be held liable via equitable indemnification for “downstream” damages from a data breach at end-user Zoll Services, which allegedly arose from vulnerabilities in Barracuda’s email archiving service purchased through a reseller; after Axis Insurance funded a class-action settlement, both courts found no derivative or vicarious relationship to support recovery.