Regarding 1, Cisco will definitely have some explaining to do to their customers and industry compliance bodies, but legally they are in the clear. The precedent has been set time and again that knowingly accessing a system that you know you shouldn't is enough to be considered a criminal act, regardless of how (in)secure it was.
> Cisco will definitely have some explaining to do to their customers and industry compliance bodies, but legally they are in the clear.
Violating numerous compliance regulations by leaving the accounts of a terminated employee active for months doesn’t put Cisco “legally in the clear.” Depending on the regulator they could be in for a good sized fine.