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06/15/2026
$17M in escrow funds gone overnight: Palm Beach law firm sues bank over cyber attack
The Real Deal
In the early morning of a Thursday in January, more than $17 million of funds disappeared from the escrow account of a prominent real estate law firm in Palm Beach. Now, the law firm is suing the bank for the unrecovered funds, according to a lawsuit obtained by The Real Deal.
Attorneys Guy Rabideau and David Klein’s Rabideau Klein sued First Horizon Bank this week, alleging the bank violated state law governing fund transfers, breach of contract and negligence.
The firm handles deals for some of Palm Beach’s wealthiest clients. A quick Google search shows articles covering real estate deals the practice was involved in for tens of millions of dollars on the island.
Palm Beach-based Rabideau Klein was able to recover $10.7 million of the $17.3 million lost, but about $6.5 million remains outstanding, and it wants the bank to refund the money, with interest.
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