ARTICLE · 10 AUGUST 2011

Financial Services Quarterly Alert (August 9, 2011 Edition)

Goodwin Procter LLP

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People’s United Bank, the nation’s largest regional bank headquartered in New England, won a key victory in a data security breach case that had been followed for two years by the national banking associations, as well as by "American Banker" and other industry publications.

United StatesFinance and Banking

Court Recognizes "Commercial Reasonableness" in Finding for Bank in Data Security Breach Case

People's United Bank, the nation's largest regional bank headquartered in New England, won a key victory in a data security breach case that had been followed for two years by the national banking associations, as well as by American Banker and other industry publications.

Patco Construction Company Inc., a commercial customer of the bank, brought suit alleging that the bank was responsible when third-party cybercriminals allegedly breached Patco's computer system, stealing passwords and challenge question answers allegedly through the use of keylogging malware, and executed a series of fraudulent withdrawals from Patco's checking account. Patco filed suit against People's United in 2009, alleging negligence, breach of contract, breach of fiduciary duty, unjust enrichment and conversion.

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