Newsroom > In Our Words > Hacked Law Firms Left Holding...
April 4, 2019

Hacked Law Firms Left Holding the Bag

Written By

Adam C. Reeves
Member, Stoll Keenon Ogden PLLC

As a law firm, getting hacked is bad enough.  But one Pennsylvania law firm learned an even harder lesson when it sued Bank of America to recover client funds stolen by hackers. In O’Neill v. Bank of America, a federal judge dismissed a law firm’s claim that its bank bore ultimate responsibility after one of the firm’s shareholders unwittingly transferred $580,000 from the firm’s IOLTA account to computer hackers in Hong Kong.  While the hackers were, “of course…the real culprit[s],” the court announced that “as between the law firm and the bank, the firm must bear the loss.  The law firm’s hacking and court’s decision in O’Neill present important lessons for Kentucky practitioners about cybersecurity. 

READ MORE

Written By

Photo of Adam Reeves
Adam C. Reeves

Related Articles

View More
November 20, 2024
Secure 2.0 Act Brings Flexibility to 529 Savings Plan but Hoosiers Left Behind
When my mother graduated from college in 1994, the average cost for an in-state, four-year degree and required fees (excluding room and board), adjusted for inflation, was $5,119 annually.[1] As of 2023, that amount has grown to $17,709.[2] Though the rise in cost alone provides one reason the Section 529 Education Savings Plan has become […]
November 19, 2024
Court Strikes Down Rule Raising Salary Threshold for Overtime Exemptions Nationwide
On November 15, 2024, a federal district court in Texas struck down a U.S. Department of Labor (“DOL”) rule that would have significantly increased the minimum salary threshold for overtime exemption as an administrative, executive, or professional employee (otherwise known as “white collar” exemptions). The Court found that the DOL exceeded its rulemaking authority by […]
November 18, 2024
Corporate Transparency Act Updates
The Corporate Transparency Act (the “CTA”) remains on track – as of now, your company created before January 1, 2024, absent one of the few exemptions, MUST make an initial filing before the end of 2024.  This SKO Insider will summarize some recent developments, as well as provide more information about how to determine a […]