Technology

Judge Rules Jeweler’s Lawsuit Against PNC Bank Can Move Forward

TechnologyApr 15, 2024

Judge Rules Jeweler’s Lawsuit Against PNC Bank Can Move Forward

Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.

Joyce’s Jewelry
A judge ruled that Joyce’s Jewelry in Uniontown, Pennsylvania, can move forward with its lawsuit against PNC Bank. The Pittsburgh-area independent sued the bank in 2022 after cybercriminals stole more than $1.6 million from its accounts via unauthorized wire transfers. (Image courtesy of Joyce’s Jewelry Facebook page)
Uniontown, Pa.—A preliminary ruling by a Pennsylvania judge will allow a jeweler who lost more than $1 million in a cyberattack to move forward with its lawsuit against PNC Bank and some of its employees.

The owners of Joyce’s Jewelry in the Pittsburgh-area city of Uniontown sued PNC in September 2022 after cybercriminals stole nearly $1.6 million from the retailer’s bank accounts through a series of wire transfers. 

The theft took place on the afternoon of May 12, 2022, when one of the jewelry store’s employees accidentally logged into a phony website made to look like PNC Bank’s website.

Using the employee’s login credentials obtained from the phishing website, cybercriminals emptied all four of the store’s bank accounts through 11 wire transfers sent over a period of 20 hours.

In the lawsuit, the store’s owners alleged that PNC Bank failed to keep its money safe, while PNC claimed it took the proper steps in regard to the transactions and the fault lies with Joyce’s Jewelry and its employee.

The jeweler claimed these transfers should have raised a red flag for PNC because the money was moved to accounts and businesses it had never sent money to before. 

The wire amounts also were far above the usual transaction amounts, by tens of thousands of dollars per wire. Joyce’s had never wired close to $1 million in a single day.

The wires also exceeded the funds available, leading to an overdraft charge of nearly $200,000, another abnormality that should have caught the bank’s attention. Joyce’s, to its knowledge, had never overdrawn on its accounts before, the lawsuit states. 

PNC did recover some of the stolen funds, and charged the jeweler for its recovery efforts, bringing the loss total down to $1.1 million.

The case brought by Joyce’s Jewelry initially went to the Court of Common Pleas of Fayette County, Pennsylvania, which is a state court.

PNC Bank asked that a federal court, the U.S. District Court for the Western District of Pennsylvania, take up the matter.

On Jan. 12, 2023, the federal court denied that request, ruling the state court should continue to handle the case.

Two weeks later, PNC filed a motion to dismiss, arguing against Joyce’s claims of negligence and breach of fiduciary duty, as well as the jeweler’s request for attorneys’ fees and punitive damages.

The bank also argued it could only be sued only under the state’s Uniform Commercial Code, which guides commercial business transactions, including wire transfers.

 Related stories will be right here … 

Earlier this year, the state court’s decision came back in favor of Joyce’s Jewelry.   

In a March 11 ruling, Judge Nancy D. Vernon said the court could not dismiss claims that PNC and individual bank employees acted negligently.

She also said the jeweler can continue to seek attorneys’ fees and punitive damages in the case.

In her ruling, the judge also noted that PNC’s duty to the jeweler goes beyond its contractual obligations and said the bank may still be liable for a tort, meaning an injury or wrong independent of an implied contract.

A spokesperson from PNC said, “PNC regrets that Joyce’s Jewelry was the victim of a crime and suffered financial losses. However, Joyce’s Jewelry could have avoided being defrauded had they taken the reasonable precautions recommended by PNC at any stage of this process.

“Although the court denied PNC’s requested relief at this stage, PNC expects the facts and law will ultimately establish that PNC is not liable for Joyce’s Jewelry’s losses.”

Howard Kaplan, partner at the law firm Kaplan & Grady and Joyce’s Jewelry’s counsel, shared some insight into the case and what it could mean for other small businesses in this situation.

The recent ruling is significant, he said, because that’s not usually how these cases play out.

“Usually, [these cases] are under a very narrow legal theory and individual bank employees are not put in the mixer. And punitive damages aren’t a question, nor is tort liability for negligence,” he said.

“Usually, disputes with bank customers are a creature of contract, as opposed to tort or negligence. So, the liability on a negligence theory is broader. The potential damages and liability are broader than on a contract theory,” said Kaplan.

If the bank was able to confine the lawsuit to the Uniform Commercial Code claim, it likely would have limited the damages it may have to pay. 

The judge’s March 11 ruling is “a really bad development for [PNC] because they don’t want their employees getting sued, and they don’t want to be exposed to open-ended damages,” he said.

The damages are, in part, for “gaslighting” the jeweler into believing the fault was solely theirs, and for sending the business into collections and risking its livelihood, Kaplan said.

As for how much, that’s a question for the judge and jury.

“What is it going to take to send a message to PNC that the way that they’ve treated their customer in this instance was unacceptable? And I would think that it would take a large number to send a message to them, likely a multiple of Joyce’s loss,” he said.

“The bank here is spending more on their defense than it would cost to pay Joyce’s back. They will spend more than a million dollars through trial to avoid doing right by their customer.”

Beyond the legal implications of the case, Kaplan said he wants people to understand the reality and relatability of the situation.

“They’re going to blame a 70-year-old woman for making a mistake on her computer and say what resulted—collection of all of Joyce’s cash into one account and then shipping that money out in 11 highly suspect wires over the course of 20 hours—is all fair and OK,” he said. “It’s really offensive from a common-sense perspective.”

“We didn’t say that Joyce’s did everything right. But PNC is required to have reasonable security and is required to follow those reasonable security measures in a reasonable way,” Kaplan said.

“And the facts of the case seem to show that one or the other isn’t true. Either you didn’t have the proper security in place, or you all were asleep at the switch, but it has to be one or the other because of what happened,” he said.

The case is in the preliminary stages, but Kaplan’s hope is that others in this situation can take the same approach.

“If we actually win the case, and I am confident that we will, then that roadmap will just be that much more useful and hopefully it will lead more broadly to better recoveries for defrauded customers, and there are many more out there,” said Kaplan.

The Latest

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

Iowa jeweler Herman Ginsberg
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99

A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.

gia1d100 btyb.jpg
Brought to you by
Protect Your Customers and Your Business

The risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.

Charles & Colvard moissanite ring
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to Noncompliance

The company failed to file its quarterly reports in a timely manner.

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

gia-topimage 0325.jpg
Brought to you by
A Brilliant Future Is Here

Get online education from GIA experts.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

Tiffany & Co. Strong Like Mom campaign
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day Campaign

The “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.

Athena Calderone x John Hardy Collection
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired Collection

Interior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.

Movado Connect 2.0 watches
FinancialsApr 17, 2025
Movado Group to Increase Prices to Offset Tariffs Impact

During a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy