Edited By: Mohammad Haris
Last Updated: January 05, 2023, 14:23 IST
JPMorgan Chase Bank NA will have to face a lawsuit by a unit of the French maker of Ray-Ban glasses. The latter claims that the bank ignored suspicious transactions as cybercriminals drained $272 million from its New York bank account, according to a Bloomberg report.
It added that Essilor Manufacturing (Thailand) Co, which operates a plant for EssilorLuxottica SA in Thailand, sued the bank in April in federal court in New York. It claimed that the lender failed to notify the company, and was aware of a pattern of fraudulent transactions that led to the theft. This is 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, according to the Bloomberg report.
Essilor Manufacturing (Thailand) Co said it recovered the amount except $100 million of the stolen funds “through a costly and burdensome process”. It is seeking compensatory damages to be determined at trial, according to the report.
Read all the Latest Business News here