Greenberg Glusker Wins Precedent-Setting Appeal for Cryptocurrency Investor Michael Terpin, Reviving Landmark Suit on Federal Communications Act Violations
September 30, 2024 – Press ReleaseSeptember 30, 2024 - Los Angeles, CA – The Ninth Circuit Court of Appeals issued a highly anticipated ruling today in Terpin v. AT&T Mobility, LLC, allowing Michael Terpin, a prominent cryptocurrency investor, to proceed with his $24 million claim against the telecom giant.
This unanimous three-judge ruling is a landmark pro-consumer victory for the firm's client Terpin, Greenberg Glusker, and organizations, including EPIC (Electronic Privacy Information Center), who contributed a pro-consumer amicus brief on the case.
The appeal succeeded on the key issue that AT&T violated the Federal Communications Act when its porous customer security system allowed a hacker to do a SIM swap, access Terpin's accounts, and steal $24 million of his cryptocurrency fortune.
AT&T customer Michael Terpin first brought suit against the company in 2018 after sustaining $24 million in cryptocurrency losses when AT&T allowed hackers to gain control of his phone number and, with it, his crypto accounts. In 2023, the Central District Court of California granted AT&T’s motion for summary judgment, handing the win to the telecom giant.
Terpin and Greenberg Glusker appealed the District Court’s decision. The Ninth Circuit decision held that AT&T can be liable for damages under the Federal Communications Act when it allows a hacker to get into its system, access the customer's AT&T account, and steal the customer's private information or assets.
This precedential decision is the first of its kind. It paves the way for Terpin to go to trial and hold AT&T accountable after six years of litigation, including asking a Los Angeles federal jury to award their client $24 million plus interest and attorney's fees, totaling about $45 million.
“This is a joyous day for cell phone consumers,” said Pierce O’Donnell, Greenberg Glusker’s lead counsel for Terpin. “The Ninth Circuit’s landmark decision creates a potent new protection for victims of breaches of their privacy enabled by their carrier’s porous security systems.”
The Greenberg Glusker litigation team included Pierce O'Donnell, Paul Blechner, and Emily Avazian.