Community Health Systems Enters Into Five-Million-Dollar, Multi-State Settlement Agreement in Connection with 2014 Data Breach

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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.

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New York’s New Data Breach Notification Law: What Businesses Should Know

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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.

Data Privacy Exposure Hits the Public Sector: Lessons from the OPM Data Breach Class Action, Whistleblower Actions, and the GAO Cybersecurity Report

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Data privacy litigation and enforcement actions continue to roil the private sector, most recently with the FTC’s announcement of a $425 million settlement with Equifax in the wake of the Equifax data breach. Less discussed is the fact that data privacy and security remains a real threat in the public sector. As we recently reported, the 2019 Verizon Data Breach Investigations Report found that 16% of confirmed data breaches were in the public sector. Three recent developments highlight the breadth and scope of the threat, reflecting that federal agencies and government contractors remain vulnerable to cyberattacks and may be subject to liability for cybersecurity failures.

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Texas Amends State Breach Notification Law and Creates Advisor Council to Study Privacy Laws

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Businesses in Texas that own or license computerized data will expect a shortened data breach notification deadline for any breach of sensitive personal information after January 1, 2020. Meanwhile, reporting to state attorney general (“AG”) will become mandatory if more than 250 Texans are involved in a single data breach.

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Oregon Amends Data Breach Notification Law to Apply to Vendors

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On May 24, 2019, Oregon Governor Kate Brown signed into law Senate Bill 684, which requires vendors, service providers and other entities that maintain or possess consumers’ personal information to notify consumers of a security breach.

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Supreme Court Gives Companies Another Tool To Fend Off Data Breach Class Actions

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In the wake of data breaches, companies may find themselves targets of class actions by customers or employees whose personal information was compromised in the breach. The exposure is considerable, with an estimated 765 million people impacted by data breaches between April and June of 2018. As we previously reported, some courts have allowed consumer and employee data breach cases to proceed despite threshold challenges – leading to multi-million-dollar settlements. And in Dittman, Pennsylvania’s Supreme Court recently held that an employer owed an affirmative duty to exercise reasonable care to protect employees’ personal nonpublic data from data breaches.

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