Penalty Amount
$16,000,000
Connecticut, as part of a 40-state coalition, secured multistate settlements totaling over $16 million with Experian and T-Mobile related to data breaches in 2012 and 2015 that exposed consumers' personal information. Experian agreed to pay $12.67 million and implement enhanced data security measures, while T-Mobile agreed to pay $2.43 million and strengthen vendor management. Additionally, Experian Data Corp. paid $1 million to resolve a separate 2012 breach investigation, with all entities required to improve data protection practices.
Experian agreed to pay $12.67 million and implement a comprehensive information security program with zero-trust principles, due diligence, data minimization, and specific security requirements. T-Mobile agreed to pay $2.43 million and implement a vendor risk management program with contractual security requirements for vendors. Experian Data Corp. agreed to pay $1 million to improve vetting of third parties and maintain a Red Flags program. Experian also must offer 5 years of free credit monitoring to affected consumers.
In-house legal teams should review vendor agreements (particularly those involving data brokers or credit reporting agencies like Experian), customer agreements (such as telecom service contracts with T-Mobile), and any data processing addendums. Focus on clauses governing data security obligations, breach notification timelines and procedures, audit and inspection rights, indemnification for data breaches, data encryption and access control standards, incident response plans, data retention and disposal policies, and vendor oversight requirements. Changes may include strengthening security specifications (e.g., mandatory encryption, regular penetration testing), clarifying breach notification within 72 hours, requiring third-party security audits, enhancing vendor due diligence and monitoring provisions, and updating indemnification terms to cover regulatory fines and consumer redress.
Entity
Experian; T-Mobile
Industry
Data Broker$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.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.