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August 2020 » Cybersecurity Risk Considerations...
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Sheldon M. Geller, JD, CPA
Many 401(k) plan sponsors mistakenly believe that when they delegate responsibilities to a record-keeping service provider, they have no liability for cybersecurity breaches. One recent case [Leventhal v. MandMarblestone Group, LLC (E.D. Pa. May 1, 2019)], however, held that both the plan sponsor and plan service provider have a shared liability to restore participant accounts after cybersecurity breaches.
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