New: a trial court in 1 of every 10 U.S. counties. Read the post
Court Rules
All enforcement actions
SettlementMedium Risk

NY AG Settles with OrthopedicsNY for $500K Over Data Security Failure

OrthopedicsNY, LLPDecember 26, 2025New York Attorney General

Penalty Amount

$500,000

Consumers Affected

656,000

Summary

New York Attorney General Letitia James secured a $500,000 settlement with orthopedics practice OrthopedicsNY, LLP for failing to implement adequate data security measures, leading to a 2023 cyberattack that exposed personal and health information of approximately 656,000 patients and employees. The settlement requires OrthopedicsNY to pay the penalty, fund one year of free credit monitoring for affected individuals, and adopt enhanced data security practices including multifactor authentication, encryption, and annual risk assessments.

Remedy

OrthopedicsNY must pay $500,000 in penalties and costs to the state, fund one year of free credit monitoring for all 656,000 affected patients and employees, implement a comprehensive information security program with access limits, multifactor authentication for remote access, data encryption, network monitoring for anomalous activity, and conduct annual risk assessments to identify data security risks.

Monetary PenaltyCompliance ProgramAudit Requirement

Contract Impact

In-house legal teams should review all agreements with healthcare vendors and service providers that handle patient or employee personal data to ensure robust data security requirements. Contracts should mandate implementation of multifactor authentication for remote access, encryption of sensitive data at rest and in transit, and annual risk assessments. Agreements must also require vendors to maintain comprehensive information security programs with strict access controls and network monitoring, and include clear penalties for security failures that lead to breaches. Additionally, contracts should address breach notification obligations and require vendors to fund credit monitoring or similar remediation for affected individuals in the event of a data breach.

Contract Search Terms

multifactor authenticationdata encryptionannual risk assessmentinformation security programaccess control policiesnetwork monitoringhealth data safeguardsbreach credit monitoring

Violation Types

Entity Details

Entity

OrthopedicsNY, LLP

Also known as: OrthopedicsNY

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"OrthopedicsNY, LLP"
Fine Amount
"$500,000"
Event Date
"December 26, 2025"
Violation Types
"failed to implement reasonable data security practices designed to protect patients’ information"
Violation Types
"attackers then downloaded unencrypted files containing sensitive private personal and health care information of approximately 656,000 individuals"
Violation Types
"exposing the information of more than 650,000 patients and employees"

Related Enforcement Actions

NY

Boston Children’s Health Physicians, LLP and XTIUM

$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.

NY

U.S. Department of Justice

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.

NY

DolGen New York, LLC and Dollar General Corporation

$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.

NY

New York State Office of the Attorney General

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.

NY

Character Technologies, Inc.

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.

NY

Martin Shkreli

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.