Penalty Amount
$1,000,000
Consumers Affected
213,935
New York Attorney General Letitia James reached a settlement with Albany ENT & Allergy Services (AENT) over two 2023 ransomware attacks that compromised the medical records of over 200,000 New Yorkers. The OAG found AENT failed to maintain reasonable data security safeguards, inadequately oversaw third-party security vendors, and initially failed to disclose all exposed consumer data to the state. AENT will pay $1 million in penalties (with $500,000 suspended pending $2.25 million in security investments) and implement comprehensive data security measures including encryption, multi-factor authentication, and vendor oversight.
AENT must pay $1 million in penalties to New York State, with $500,000 suspended provided the company invests $2.25 million over five years to upgrade and maintain its information security program. AENT is required to establish and maintain a comprehensive information security program including: an inventory of all private information on its networks; encryption of all private information stored or transmitted; multi-factor authentication for remote device access; controls to monitor and log security activity; a process for timely installation of critical security updates; an incident response plan; and oversight of third-party information security vendors. AENT must also offer affected consumers one year of free credit monitoring.
In-house legal teams should review all agreements with third-party security vendors to ensure they require timely installation of security updates, network activity logging, encryption of private information, and multi-factor authentication for remote access. Vendor contracts must include clear oversight provisions mandating that vendors maintain reasonable security safeguards and promptly report breaches. Companies should also update their internal information security program clauses to require private information inventories, incident response planning, and full compliance with state breach notification laws to prevent delayed or incomplete disclosures to regulators.
Entity
Albany ENT & Allergy Services, P.C.
Also known as: Albany ENT & Allergy Services
Industry
HealthcareOfficial Press Release
https://ag.ny.gov/press-release/2024/attorney-general-james-secures-225-million-capital-region-health-care-provider
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New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"Albany ENT & Allergy Services, P.C. (AENT)"
"AENT is also required to pay $1 million in penalties and costs to the state"
"AENT suffered two cyberattacks that compromised the medical records of over 200,000 New Yorkers"
"AENT failed to adequately monitor the third-party vendors responsible for their cybersecurity functions. As a result, those vendors did not timely install critical security software updates, adequately log and monitor network activity, properly encrypt consumers’ private information before and after the attacks, utilize multi-factor authentication for all remote access, or otherwise maintain a reasonable information security program."
"compromised the medical records of over 200,000 New Yorkers"
"The OAG investigation determined that AENT had not initially disclosed to the state the exposure of over 80,000 New York resident driver’s license numbers"
$2.6M
New York and Connecticut reached a settlement with Boston Children’s Health Physicians and its IT security provider, XTIUM, after a 2024 breach exposed private information of approximately 825,000 New York residents and 62,871 Connecticut residents. The companies will pay $2.64 million and implement enhanced cybersecurity measures; additional penalties are conditional on violating the settlement.
New York Attorney General Letitia James joined 16 other attorneys general in urging Congress to pass proposed legislation addressing the federal government’s release of Jeffrey Epstein-related records. The press release says DOJ has not fully disclosed the records required by the original law and that personal information of at least 43 victims was exposed in released files; this is a legislative advocacy announcement, not an enforcement action imposing a penalty or remedy.
$1.9M
New York Attorney General Letitia James secured a settlement after an investigation found Dollar General stores routinely charged customers more than advertised or posted prices and issued confusing receipts. Dollar General must donate $1.875 million in food and personal items to Foodlink and implement pricing, receipt, training, and audit reforms.
New York Attorney General Letitia James released an updated guide warning voters that AI-generated election content and chatbots may provide misleading information. This is public guidance, not an enforcement action, and the release describes no penalty or privacy violation.
New York Attorney General Letitia James and a bipartisan coalition of 39 other attorneys general filed a motion in Character Technologies, Inc.’s bankruptcy, citing risks to children and sensitive user information and potential violations of state privacy laws. The coalition asks the court, the company, and any prospective buyer to require meaningful privacy and safety protections; no fine or final remedy is reported.
New York Attorney General Letitia James, the FTC, and six other state attorneys general asked a federal court to hold Martin Shkreli in contempt for allegedly trading pharmaceutical stocks and discussing pharmaceutical companies in violation of his lifetime industry ban. The requested sanctions include divestiture, an accounting of his trading, forfeiture of trading profits, and possible further fines or incarceration; the release describes a request to the court, not a new ruling imposing those measures.