B2 LLC and Pasco System Corp.: Virtual IT Loses Bid to End Client’s Data Hack Negligence Claim

Pasco System Corp. Advances Negligence Claim Against Cybersecurity Provider Following Ransomware Attack

A federal court in Nebraska has allowed engineering firm Pasco System Corp. to proceed with a negligence lawsuit against its managed IT services provider, B2 LLC (Virtual IT), after a ransomware attack allegedly linked to the firm’s cybersecurity failures.

In a ruling by Judge Brian C. Buescher of the U.S. District Court for the District of Nebraska, the court rejected B2’s attempt to dismiss the case under the economic loss doctrine, which typically bars tort claims when damages are purely financial. Pasco argues that Virtual IT’s negligence directly contributed to the breach, enabling the lawsuit to move forward.

The case highlights growing legal scrutiny over third-party cybersecurity providers’ accountability in data breaches. While details of the ransomware attack remain undisclosed, the decision sets a precedent for similar disputes, signaling that courts may hold IT firms liable for lapses in security protocols.

The ruling underscores the increasing intersection of cybersecurity and legal liability, particularly as businesses rely on external vendors for critical digital protections. Further proceedings will determine the extent of B2’s responsibility in the incident.

Source: https://news.bloomberglaw.com/litigation/virtual-it-loses-bid-to-end-clients-data-hack-negligence-claim

B2 LLC TPRM report: https://www.rankiteo.com/company/b2-networks-llc

Pasco System Corp. TPRM report: https://www.rankiteo.com/company/pascosystemscorp

"id": "b2-pas1780677560",
"linkid": "b2-networks-llc, pascosystemscorp",
"type": "Cyber Attack",
"date": "6/2026",
"severity": "100",
"impact": "5",
"explanation": "Attack threatening the organization's existence"

{'affected_entities': [{'industry': 'Engineering',
                        'name': 'Pasco System Corp.',
                        'type': 'Engineering Firm'}],
 'description': 'A federal court in Nebraska allowed Pasco System Corp. to '
                'proceed with a negligence lawsuit against its managed IT '
                'services provider, B2 LLC (Virtual IT), after a ransomware '
                'attack allegedly linked to the firm’s cybersecurity failures. '
                'The court rejected B2’s attempt to dismiss the case under the '
                'economic loss doctrine, enabling the lawsuit to move forward.',
 'impact': {'legal_liabilities': 'Potential legal liabilities due to '
                                 'negligence claim'},
 'investigation_status': 'Ongoing (lawsuit proceeding)',
 'post_incident_analysis': {'root_causes': 'Alleged negligence by managed IT '
                                           'services provider (B2 LLC/Virtual '
                                           'IT)'},
 'references': [{'source': 'U.S. District Court for the District of Nebraska'}],
 'regulatory_compliance': {'legal_actions': 'Negligence lawsuit filed'},
 'title': 'Pasco System Corp. Ransomware Attack and Negligence Lawsuit Against '
          'B2 LLC (Virtual IT)',
 'type': 'Ransomware'}