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

Pandora executives Alexander Lacik and Berta de Pablos-Barbier
MajorsSep 30, 2025
Pandora CEO to Retire in 2026, Hand Reins to CMO

Alexander Lacik has led Pandora since 2019. Berta de Pablos-Barbier will succeed him, the first woman to head the company.

Gavel near stacks of books
CrimeSep 30, 2025
2 Suspects Charged in $300K Sleight-of-Hand Jewelry Store Scam

Two men allegedly used counterfeit bills to purchase luxury watches and jewelry from a North Carolina jeweler.

Billie Eilish and Finneas O’Connell John Hardy Lovestruck Collection
CollectionsSep 30, 2025
Billie Eilish, Finneas Partner with John Hardy

The “Lovestruck” collection, designed with the Academy and Grammy award-winning siblings, is the brand’s first lab-grown diamond offering.

gia-edu main image.png
Brought to you by
A Brilliant Future Is Here

Online education from GIA experts.

Spinelli Kilcollin Market Highland Park
IndependentsSep 30, 2025
Spinelli Kilcollin Announces Residency in Dallas

The brand, celebrating its 15th anniversary, has popped up at Market, a luxury fashion destination in Highland Park Village.

Weekly QuizSep 25, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Nina Pugliese Henne Jewelers
IndependentsSep 29, 2025
Nina Pugliese, Longtime Henne Jewelers Employee, Dies at 65

She was remembered as a creative and generous woman of faith, who also had a sweet tooth.

Kwait White and Yellow Gold Diamond Earrings
TrendsSep 29, 2025
Amanda’s Style File: Ear Focus

Move over neck mess, the ear story is the way to make a layering statement today.

reDollar-fine-jewelry-department.jpg
Brought to you by
reDollar.com Is Rolling Out the Next Level Jewelry, Diamond & Watch Consignment Program

With their unmatched services and low fees, reDollar.com is challenging some big names in the online consignment world.

Mark Henry Leandra Medine Cohen
IndependentsSep 29, 2025
Mark Henry Jewelry to Debut in Canada

The New York-based brand is set to launch a limited-time offering for the holiday season at Holt Renfrew in Toronto.

Overnight volume 7 bridal catalog
MajorsSep 29, 2025
Overnight Releases New Bridal Catalog

The “Volume 7” bridal catalog features best-selling engagement rings, trending styles, and a new section highlighting anniversary bands.

Hand holding holiday shopping bags
SurveysSep 26, 2025
Online Shopping, Influencers to Drive Holiday Spending, Mastercard Says

Holiday sales growth is expected to slow as consumers grapple with inflation and tariff-related uncertainty.

Austin Shines Jewelry Award
Events & AwardsSep 26, 2025
Winners of Austin Jewelry Design Contest Announced

Jamie Turner Designs is among the winners of the local “Austin Shines” contest, hosted by Eliza Page, a jewelry store in Austin, Texas.

Kwit Square Signet Pinky Ring in Red and Azure
TrendsSep 26, 2025
Piece of the Week: Kwit Jewelry’s Square Signet Pinky Ring

The red and azure colorway is one of many fun enamel pairings offered, bringing whimsy to the classic style of a monogramed signet ring.

Jewelers of America Fly In
Policies & IssuesSep 25, 2025
JA CEO Provides Tariff Update Following Annual Fly-In

A trade deal with Switzerland seems probable, but reaching an agreement with India remains a challenge, David Bonaparte said.

Entrance to Jwaneng diamond mine in Botswana
SourcingSep 25, 2025
2 African Countries Aim to Take Stake in De Beers

Botswana’s president said his country wants a controlling share, while Angola envisions multiple countries holding minority stakes.

Kira Jewels Growing Rowing Machines
Lab-GrownSep 25, 2025
Kira Jewels Expands Lab-Grown Diamond Production

The manufacturer is adding 1,400 chemical vapor deposition (CVD) reactors to its growing facility in India.

Alex Moss SoHo store
IndependentsSep 25, 2025
Alex Moss’ New Flagship Brings Bold Jewels to SoHo

The jeweler to the stars has worked with Drake, A$AP Rocky, Tyler the Creator, and other celebrities.

Matthew Wilson, Kavin Kulamavalava, and a Elmasolvex VA
WatchesSep 25, 2025
Wilson & Son Jewelers Donates to the Horological Society of New York

The Scarsdale, New York-based jeweler donated a professional-grade watch cleaning machine.

Representatives of India’s Gem and Jewellery Export Promotion Council and Indian government leaders
Policies & IssuesSep 24, 2025
Tariffs Throw Diamond Trade Into Disarray

The 50 percent tariffs on diamonds shipped from India to the U.S. have pushed midstream manufacturers to the edge.

Father’s Day diamond advertisement that ran in India
SourcingSep 24, 2025
De Beers Adopts New Strategies to Drive Natural Diamond Demand in India

De Beers’ refreshed, multipronged approach, which includes generic promotions and retail partnerships, is delivering positive dividends.

Policies & IssuesSep 24, 2025
For Jewelry Manufacturers, Higher Tariffs Create Long-Term Worries

They are trying to balance the need to sustain well-established relationships with the pressure higher tariffs have put on margins.

Guest lecture for people with disabilities at the Jewelex factory
SourcingSep 24, 2025
A Helping Hand: An Effort to Boost Inclusivity in the Industry

Jewelry manufacturer Jewelex has partnered with JOSH, an industry training center, on a program for people with disabilities.

Greenwich St. Jewelers Estate Capsule Campaign
CollectionsSep 24, 2025
Greenwich St. Jewelers Goes Back in Time With First Estate Collection

The collection includes pieces dating back to the Victorian and Art Deco periods as well as mid-century and late 20th-century designs.

Marcus ter Haar
Policies & IssuesSep 24, 2025
Diamonds Do Good Names Marcus ter Haar as President-Elect

He previously served as co-chair of the nonprofit’s beneficiary committee.

Jane Goodall Brilliant Earth campaign
CollectionsSep 24, 2025
Brilliant Earth’s New Jane Goodall Collection Calls for Peace

Its second collaboration with the conservationist features jewelry with dove and olive branch motifs.

SRK Kriam Pharma
SourcingSep 24, 2025
SRK Launches Kriam Pharma

The diamond manufacturer’s new company will provide accessible and affordable high-quality medicines across India.

Emmanuel Raheb, CEO of Smart Age Solutions and National Jeweler columnist
ColumnistsSep 23, 2025
Quiet Luxury: What Fall’s Top Trend Means for Jewelers

Emmanuel Raheb shares tips on how a jeweler’s showcases, marketing, and social media presence can whisper, instead of shout.

×

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