Virtual IT Loses Bid to End Client’s Data Hack Negligence Claim

Managed IT services provider B2 LLC couldn’t convince a federal court to dismiss a negligence claim from an engineering firm’s suit alleging the cybersecurity company’s error led to a data breach.

Pasco System Corp. had hired B2, also known as Virtual IT, to handle its cybersecurity. The firm told the US District Court for the District of Nebraska that Virtual IT’s negligence led to a ransomware attack. Judge Brian C. Buescher ruled that the economic loss doctrine didn’t prevent Pasco from proceeding with a negligence claim.

The economic loss doctrine blocks tort claims when the alleged damages suffered are only ...