Computer-connected litigation is on the increase and can prove both costly and time-consuming for management. State courts have ruled that suppliers of computer-processed information can be held liable for providing erroneous data. Willfulness, or the lack thereof, does not affect this liability. Computer-connected litigation can emanate from numerous sources, including disaster, thefts and abuses, negligence, and disputes. Management's primary recourse in the case of disasters, both natural and intentional, is to anticipate and prepare. Computer abuses and crimes encompass theft of data, diversion of property, unauthorized use, vandalism, and financial fraud. Securing access to the computer, monitoring use, and performing background checks can prevent such problems. Negligence, often codified by State law, frequently centers around computer error or malfunction, as well as failure to remedy problems. Disputes, both contractual and consumer-related, emanate from the manner in which data is taken in, handled, and disseminated. Specific clauses in the contracts should spell out the responsibilities and accruals of each party. Responsibilities covering consumers are often subject to the details of State regulation. Management must assure compliance with these laws. Management should also be cautious about the privacy of citizens. Litigation in the computer area can also arise out of misappropriating information and systems belonging to another. In general, management can safeguard itself by assessing risk to its computer operations, establishing a security program, using periodic audits, and enacting an in-house code of ethics. Four tables, 52 notes, a glossary, and a 19-item recommended reading list are included. Appendixes offer a computer security checklist and a listing of related trade and professional groups.