Connecticut Attorney General William Tong joined a coalition of 19 attorneys general in suing President Trump and the U.S. Treasury to stop DOGE's unauthorized access to the Treasury's central payment system and confidential records, calling it the largest data breach in American history. The lawsuit seeks an injunction to block the expanded access policy and a declaration that it is unlawful.
Seeking an injunction to prevent the Treasury Department from granting expanded access to its central payment system and a declaration that the policy change is unlawful and unconstitutional.
In-house legal teams should review all vendor, customer, and government contracts where the company handles federal payment systems, sensitive personal data (e.g., Social Security numbers, bank details), or confidential U.S. Treasury information. Focus on clauses governing data access rights, confidentiality obligations, system security standards, breach notification procedures, and compliance with federal data protection laws. Contracts may need amendments to restrict unauthorized access, mandate encryption of sensitive data, require immediate breach reporting to the government, incorporate specific federal compliance certifications, and clarify audit rights for government oversight. Pay special attention to any provisions allowing third-party (e.g., DOGE-like entities) access to systems or data, and ensure indemnification covers government data breaches.
Entity
Treasury Department
Also known as: U.S. Treasury
Industry
Financial Services"Treasury Department"
"illegally provided Elon Musk and the so-called 'Department of Government Efficiency (DOGE)' unauthorized access to the Treasury Department’s central payment system"
"This is the largest data breach in American history."
$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.