Firm Defeats Motion to Dismiss in Action Seeking Refund of More Than $100 Million in Fraudulent Wire Transfers

The Firm represents certain subsidiaries of EssilorLuxottica SA (“Essilor”), which is the world’s leading ophthalmic company and manufactures Ray Ban sunglasses and other prominent international eyewear brands. These Essilor subsidiaries were victims of international cybercriminals, who stole more than $270 million, through 243 fraudulent payment orders, from an account held at a major money center bank in New York. After recovering all but approximately $100 million of the loss, these subsidiaries asserted claims against the Bank in the United States District Court for the Southern District of New York, including a refund under Article 4-A of the New York Uniform Commercial Code (“N.Y. U.C.C.”).

In an Opinion & Order dated January 4, 2023, the Court denied the Bank’s motion to dismiss the Thai subsidiary’s claims under Article 4-A of the N.Y. U.C.C. The Court held that the Thai subsidiary had sufficiently alleged that the fraudulent transfers were “unauthorized” within the meaning of the Article 4-A of the N.Y. U.C.C. The case is now in the discovery phase.

A copy of the Court’s decision can be found here.