Estonia-based Atomic Wallet requests dismissal of class action lawsuit
The Estonia-based company Atomic Wallet (1) has filed a motion to dismiss a class action lawsuit seeking $100 million in damages resulting from the hack. Atomic Wallet argues that the lawsuit must be filed in Estonia, where the company is based, because it has “no ties to the United States.”
Jurisdiction Objection and Terms of Service
Atomic Wallet’s dismissal motion highlights that its end-user license agreement explicitly requires that any lawsuits against the company be brought in Estonia. The company claims that the majority of users allegedly affected do not live in the United States, and that there is only one plaintiff in Colorado, where the lawsuit was filed.
Disclaimers and Restrictions
The Estonia-based company claims that a total of 5,500 affected users agreed to its terms of service disclaiming liability for losses resulting from the theft and limiting damages to $50 per user. Atomic Wallet argues that there is no established legal duty to maintain security and protect against hacking, and that Colorado law does not recognize such a duty.
false misrepresentation
Plaintiff’s claims of fraudulent misrepresentation were also disputed by Atomic Wallet, emphasizing that the claims lacked legal merit. The class action lawsuit was launched in August, two months after Atomic Wallet’s $100 million exploit that affected up to 5,500 users.