Consumers Affected
212,369
Connecticut filed a statement of interest in the bankruptcy of Prospect Medical Holdings, alleging years of mismanagement that harmed patients and led to a ransomware attack compromising the data of 212,369 residents. The state seeks to ensure a responsible transition of hospitals and hold Prospect accountable for its misconduct.
In-house legal teams should review contracts with healthcare providers to ensure robust data security and privacy clauses, particularly for health information. Include provisions for bankruptcy scenarios, timely vendor payments to prevent service disruptions, and compliance with healthcare and safety standards. Also, verify data breach notification requirements and response protocols.
Entity
Prospect Medical Holdings
Industry
HealthcareOfficial Press Release
https://portal.ct.gov/ag/press-releases/2025-press-releases/connecticut-files-statement-of-interest-in-prospect-medical-holdings-bankruptcy
527 statement by state of connecticut.pdf?rev=e7e18dd9ba1e4d
https://portal.ct.gov/-/media/ag/press_releases/2025/527-statement-by-state-of-connecticut.pdf?rev=e7e18dd9ba1e4d75b05115f04bfa8bd3&hash=1B46B60DBF0E8ED45A116F2B87407DB6
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
"Prospect Medical Holdings"
"On July 31, 2023, a threat actor gained access to Prospect’s IT systems, ultimately deploying a malicious ransomware code that locked Prospect out of its own systems and compromised the private data of 212,369 Connecticut residents."
"the Bankruptcy Code"
$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.