Connecticut Attorney General William Tong issued a public warning following the FinalSite ransomware attack that disrupted school websites and communication systems nationwide. He urged all businesses and government entities to strengthen their data security practices and provided a detailed list of preventive measures. The AG also announced a new online form to help businesses comply with breach notification obligations for Connecticut residents.
In-house legal teams should review all vendor agreements with FinalSite and similar educational technology service providers, focusing on data security and incident response clauses. Specifically examine the data security addendum, breach notification procedures (including timelines and content), incident response plan requirements, data encryption standards, audit rights for security assessments, indemnification provisions for cyber incidents, service level agreements regarding system availability and uptime, data retention and deletion policies, subprocessor oversight mechanisms, and cyber insurance requirements. Given the ransomware attack's impact on school operations, contracts may need amendments to mandate specific preventive controls (e.g., multi-factor authentication, regular penetration testing), clarify notification obligations under Connecticut law, require prompt reporting of ransomware events, and ensure adequate business continuity and disaster recovery provisions.
Entity
FinalSite
Industry
Technology$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.