Data Breach Regulatory Settlements Update

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Regulatory bodies are upping the ante when it comes to settling with companies that have suffered data breaches. In addition to the below settlements, see also the settlement between the OCR and Dignity Health.

Community Health Systems, Inc. Settles for $5 M in Multi-State Settlement

On October 8, 2020, New Jersey Attorney General Gurbir Grewal (AG) announced that his office has entered into a multi-state settlement agreement with Community Health Systems, Inc. (CHS) stemming from an investigation of a 2014 data breach that exposed personal information of approximately 6.1 million patients, including 45,000 New Jersey residents. This is after CHS agreed to pay $2.3 million in settlement for HIPAA violations alleged by the Office for Civil Rights. Read article

Morgan Stanley Settles with OCC for $60 Million

Morgan Stanley has settled claims by the Office of the Comptroller of the Currency (OCC) that it failed to properly decommission data centers that housed client data of its wealth-management operations two times—once in 2016 and once in 2019 for $60 million. Read article

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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