JPMorgan to face lawsuit by unit of Ray-Ban maker over cyber theft

JPMorgan Chase Bank NA will have to face a lawsuit by a unit of the French maker of Ray-Ban glasses that claims the bank ignored suspicious transactions as cybercriminals drained $272 million from its New York bank account.
 

Essilor Manufacturing (Thailand) Co., which operates a plant in Thailand for EssilorLuxottica SA, sued the bank in April in federal court in New York, claiming JPMorgan was aware of a pattern of fraudulent transactions that led to the theft and failed to notify the company, despite red flags including a jump in monthly dollar volume and the movement of money to shell companies at regional banks, often in high-risk jurisdictions.

US District Judge Lewis Liman on Wednesday dismissed claims of breach of contract and negligence against JPMorgan, but said that EMTC can go forward with a claim under a New York contract law provision that requires banks to refund unauthorized payment orders from a customer, while dismissing a similar claim by Essilor International. He said the companies can file an amended complaint with redrafted breach of contract claims.

JPMorgan spokesperson Joe Evangelisti declined to comment on the decision.

EMTC said it recovered all but $100 million of the stolen funds “through a costly and burdensome process.” It’s seeking compensatory damages to be determined at trial.

The suit is Essilor International SAS v. J.P. Morgan Chase Bank, N.A., 22-cv-03361, U.S. District Court, Southern District of New York (Manhattan).