Web Hoster Must Defend Hacking Lawsuit by Client, Judge Rules

Internet commerce services vendor Freestyle Solutions Inc. must face a trimmed-down lawsuit alleging it misled customers about its cybersecurity practices before hackers gained access to its network, a federal New Jersey court ruled.

Freestyle succeeded in dismissing most of the claims, including negligence, but will have to defend issues surrounding its contract language, Judge Susan D. Wigenton ruled Friday for the US District Court for the District of New Jersey.

Penn LLC, an online seller of as-seen-on-TV products, accused Freestyle of causing over $30 million in business losses by exposing the financial data of 236,000 customers for over a ...