On October 8, 2020, Community Health Systems, Inc. (Community Health) and its subsidiary CHSPSC, LLC entered into a settlement agreement with 28 states for $5 million to resolve claims related to a 2014 data breach. Community Health owns over 200 hospitals across the United States and is one of the largest hospital networks in the country. The multi-state settlement follows a separate $2.3 million settlement that Community Health reached with the U.S. Department of Health and Human Services Office for Civil Rights (HHS-OCR) in connection with the same data breach.
On September 15, 2020, the New York Attorney General’s Office (NYAG) announced a settlement with Dunkin’ Brands, Inc. (Dunkin) in connection with a September 2019 lawsuit brought by the NYAG against Dunkin for alleged failures to adequately respond to cyberattacks that impacted approximately 300,000 customers. The proposed settlement—which still must be approved by the court—requires Dunkin to, among other things, notify customers impacted by the attacks, maintain specific cybersecurity procedures to prevent future cyberattacks, and pay $650,000 in penalties.
New York’s Stop Hacks and Improve Electronic Data Security Act, which went into effect on March 21, places a greater burden on regulated entities in responding to data breaches and expands the enforcement powers of the New York Attorney General’s office. In order to avoid penalties, businesses would be wise to ensure that they are in compliance with the new law.
For the full alert, visit the Faegre Drinker website.
On July 16, 2019, the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) issued an “Updated Advisory on Email Compromise Fraud Schemes Targeting Vulnerable Business Processes” (the “Advisory”). The Advisory provides a detailed and helpful overview of trends in Business Email Compromise (“BEC”) schemes affecting U.S. financial institutions and other businesses.