Penalty Amount
$515,000
Consumers Affected
349,255
Comstar, LLC, an ambulance billing vendor, suffered a data breach in March 2022 that exposed sensitive patient information, including Social Security numbers and medical records, of over 349,000 residents in Connecticut and Massachusetts. The settlement requires Comstar to pay $515,000 and implement enhanced security measures such as phishing protection and annual security assessments.
Comstar must pay $515,000 and implement security measures including phishing protection software, vulnerability management program, multi-factor authentication, and conduct annual security assessments for three years with reports to the Connecticut and Massachusetts Attorneys General.
In-house legal teams should review vendor agreements, data processing agreements, and Business Associate Agreements (BAAs) with entities like Comstar that handle sensitive patient data. Key clauses to scrutinize include data security standards, breach notification requirements, HIPAA compliance obligations, audit rights, and indemnification provisions. Given the settlement, contracts should be updated to mandate specific security measures such as phishing protection and annual security assessments, ensure prompt breach notification in line with state and federal laws, and include robust indemnification clauses to cover potential liabilities from data breaches involving protected health information.
Entity
Comstar, LLC
Also known as: Comstar
Industry
HealthcareOfficial Press Release
https://portal.ct.gov/ag/press-releases/2026-press-releases/attorney-general-tong-announces-settlement-with-ambulance-billing-vendor
comstar final judgment on stipulation.pdf?rev=a352c9d2fe0b44
https://portal.ct.gov/-/media/ag/press_releases/2026/comstar---final-judgment-on-stipulation.pdf?rev=a352c9d2fe0b4456889717d556bfacdc&hash=AB1B7FC92347A3BA676BA8D0023409A9
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
"Comstar, LLC"
"$515,000"
"Health Insurance Portability and Accountability Act (HIPAA)"
"Connecticut and Massachusetts security and consumer protection laws"
"data breach"
"failing to implement basic, necessary security measures"
$515K
Massachusetts Attorney General secured a $515,000 settlement with Comstar, LLC for a March 2022 data breach that exposed sensitive patient information of over 326,000 Massachusetts residents. Comstar violated Massachusetts Data Security regulations and HIPAA by failing to maintain adequate security measures. The settlement includes monetary payment and mandated security improvements.
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.