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Ray-Ban Manufacturer Must Sue JPMorgan For $272 Million In Cybertheft

Ray-Ban Manufacturer Must Sue JPMorgan For $272 Million In Cybertheft
A New York judge ordered JPMorgan Chase & Co to face a lawsuit filed by the French manufacturer of Ray-Bans, which claimed cybercriminals withdrew $272 million from its New York account after the bank ignored "red flags" of suspicious activity.
On Wednesday, US District Judge Lewis Liman ruled that a Thailand unit of EssilorLuxottica SA can try to prove that JPMorgan violated a New York commercial contract law requiring refunds of unauthorized payment orders.
Transfers in whole-dollar amounts and through small banks to unfamiliar entities associated with coffee, furniture, and hair care rather than the optical industry, according to Essilor, are red flags of fraud.
The firm, based in the Paris suburb of Charenton-le-Pont, stated “ it was unable to recover $100 million in transfers made in the fourth quarter of 2019. The lawsuit seeks unspecified monetary damages.
Liman rejected JPMorgan's claim that the Essilor unit "authorized" the transfers in a 39-page decision because the bank received two approvals for each transfer and thus followed the required security procedures.
The judge also dismissed a breach of contract claim, but said Essilor could try to revive it, and dismissed a negligence claim because JPMorgan had no duty to monitor and prevent overdrafts outside of its account agreement.
On Thursday, JPMorgan declined to comment. Essilor and its lawyers did not respond immediately to requests for comment.
The case is Essilor International SAS et al v. JPMorgan Chase Bank NA, No. 22-03361 in the United States District Court for the Southern District of New York.

Christopher J. Mitchell

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