Palm Beach Law Firm Sues First Horizon Bank After $17M Escrow Theft
In January, a Palm Beach-based real estate law firm, Rabideau Klein known for handling high-value transactions for wealthy clients lost $17.3 million from its escrow account after a cyberattack. The firm has since filed a lawsuit against First Horizon Bank, alleging negligence, breach of contract, and violations of state fund transfer laws.
Rabideau Klein recovered $10.7 million of the stolen funds but is seeking the remaining $6.5 million, plus interest, from the bank. The lawsuit claims First Horizon’s security failures enabled an unknown threat actor to execute 13 unauthorized wire transfers, causing severe financial and operational damage.
According to the complaint, the attacker gained access to the firm’s online banking platform, changed passwords, created a new user ID, and disabled existing accounts. The threat actor even called First Horizon’s customer service, impersonating firm partner Guy Rabideau, to request a new RSA security token. During the call, the attacker stumbled over basic account details, saying “their account number” instead of “my,” yet the bank proceeded without verification. First Horizon later provided the attacker with Rabideau’s user ID, which was used to reset his login credentials.
The lawsuit accuses the bank of ignoring multiple red flags, alleging it failed to act despite clear signs of a malicious attack. Rabideau Klein’s attorney declined to comment, and First Horizon has not responded to requests for statement.
The law firm originally opened the account with Lydian Private Bank, which was later acquired by Iberiabank before merging into First Horizon in 2020. First Horizon ranks among the 40 largest U.S. banks, with over $80 billion in assets.
Source: https://therealdeal.com/miami/2026/06/12/law-firm-sues-first-horizon-over-17-million-cyber-attack/
Rabideau Klein TPRM report: https://www.rankiteo.com/company/rabideaulaw-palmbeach
"id": "rab1781324665",
"linkid": "rabideaulaw-palmbeach",
"type": "Cyber Attack",
"date": "6/2026",
"severity": "100",
"impact": "5",
"explanation": "Attack threatening the organization's existence"{'affected_entities': [{'customers_affected': 'High-value clients handling '
'real estate transactions',
'industry': 'Legal (Real Estate)',
'location': 'Palm Beach, Florida',
'name': 'Rabideau Klein',
'type': 'Law Firm'}],
'attack_vector': 'Compromised Online Banking Credentials',
'date_detected': '2024-01',
'description': 'A Palm Beach-based real estate law firm, Rabideau Klein, lost '
'$17.3 million from its escrow account after a cyberattack. '
'The firm filed a lawsuit against First Horizon Bank, alleging '
'negligence, breach of contract, and violations of state fund '
'transfer laws. The attacker executed 13 unauthorized wire '
'transfers, causing severe financial and operational damage.',
'impact': {'brand_reputation_impact': 'High (lawsuit and public disclosure)',
'financial_loss': '$17.3 million (recovered $10.7 million, $6.5 '
'million outstanding)',
'legal_liabilities': 'Lawsuit filed for negligence, breach of '
'contract, and violations of state fund '
'transfer laws',
'operational_impact': 'Severe financial and operational damage',
'payment_information_risk': 'High (unauthorized wire transfers)',
'systems_affected': 'Online Banking Platform'},
'initial_access_broker': {'entry_point': 'Online Banking Platform',
'high_value_targets': 'Escrow account with $17.3 '
'million'},
'investigation_status': 'Ongoing (lawsuit in progress)',
'motivation': 'Financial Gain',
'post_incident_analysis': {'root_causes': 'Insufficient authentication and '
'verification procedures by First '
'Horizon Bank'},
'references': [{'source': 'News Article'}],
'regulatory_compliance': {'legal_actions': 'Lawsuit filed',
'regulations_violated': 'State fund transfer laws'},
'response': {'recovery_measures': 'Partial recovery of $10.7 million'},
'threat_actor': 'Unknown',
'title': 'Palm Beach Law Firm Sues First Horizon Bank After $17M Escrow Theft',
'type': 'Financial Fraud',
'vulnerability_exploited': 'Insufficient Authentication and Verification '
'Procedures'}