The U.S. Department of Health and Human Services’ Office for Civil Rights (OCR) has announced that it has settled potential violations of HIPAA with Athens Orthopedic Clinic PA (Athens) for $1.5 million, following an investigation of a data breach that occurred in 2016.

The data breach compromised the protected health information of 208,557 individuals when the information may have been stolen and posted online for sale. Two days later, the hacker requested payment of money in exchange for return of the stolen database. It is reported that the hacker was able to access the database through the use of a vendor’s credentials.

The OCR’s investigation found that Athens had systemic noncompliance with both the HIPAA Privacy and Security Rules. In addition to the monetary settlement, Athens will also implement a corrective action plan and be monitored for two years.

Photo of Linn Foster Freedman Linn Foster Freedman

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her…

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her practice on compliance with all state and federal privacy and security laws and regulations. She counsels a range of public and private clients from industries such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine and charitable organizations, on state and federal data privacy and security investigations, as well as emergency data breach response and mitigation. Linn is an Adjunct Professor of the Practice of Cybersecurity at Brown University and an Adjunct Professor of Law at Roger Williams University School of Law.  Prior to joining the firm, Linn served as assistant attorney general and deputy chief of the Civil Division of the Attorney General’s Office for the State of Rhode Island. She earned her J.D. from Loyola University School of Law and her B.A., with honors, in American Studies from Newcomb College of Tulane University. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.