“Millions of dollars worth of orders were in limbo, and despite POC’s Herculean manual efforts, a significant portion had to be canceled,” states the complaint. “This led to a mass exodus of customers, drawn away by the allure of competitor brands.”
A Broken Bond of Trust
Dating back to March 2016, the distributor service agreement between POC and the publicly traded Expeditors promised a seamless, computerized distribution management system. This system was meant to give POC a real-time window into the status of its products through Expeditors’ online client portal – a promise POC now claims was hollow.
In 2021 and 2022, POC paid Expeditors handsomely – nearly $2.6 million and over $3 million respectively – for these logistics services.
A Foreseen Disaster?
Despite being in a digital era rife with cyber threats, and despite Expeditors’ own public assurances of robust cybersecurity measures, POC alleges that Expeditors failed to erect adequate digital defenses, leaving them vulnerable to the attack.
POC USA LLC Sues Over Cyberattack : A Cascade of Consequences
The fallout was dramatic. POC scrambled to manually salvage order data, halting e-commerce sales and grappling with frustrated customers. The lawsuit paints a picture of chaos – increased freight costs, demurrage charges, refunds, chargebacks, and a glut of unsold products languishing in Expeditors’ warehouses.
Seeking Justice Amidst the Digital Debris
POC’s lawsuit levels serious charges: breach of implied covenant of good faith, gross negligence, bailment, and violating consumer protection law. Damian Phillips, POC’s communication director, described the shutdown as causing a “near total cessation” of their North American operations. He quantified the impact as “financially very significant,” encompassing lost orders, customers, and additional logistic restructuring costs.
