AT&T Mobility will need to answer to a lawsuit filed by a cryptocurrency investor who lost millions in a SIM-swapping hack.
A Los Angeles federal judge rejected the motion to dismiss the lawsuit against the telecoms giant on Monday, according to a press release.
The plaintiff, Michael Terpin, accuses the company of enabling thieves to steal $24 million of his cryptocurrency. The company purportedly gave hackers posing as Terpin access to his SIM card twice, and is accused of violating the Federal Communications Act as well as breach of contract.
While AT&T requires customers to sign an agreement relinquishing any right to hold the company "financially responsible for its wrongful acts," Terpin is challenging that clause, purporting it is illegal.
“Mr. Terpin’s claim … seeks to declare AT&T’s wireless customer agreement as unconscionable, void against public policy, and unenforceable in its entirety,” Judge Wright stated. “Specifically, he objects to the exculpatory provision that exempts AT&T from liability from its own negligence, acts or omissions of a third party, or damages or injury caused by the use of the device.”