On October 8, 2020, New Jersey Attorney General Gurbir Grewal (AG) announced that his office has entered into a multi-state settlement agreement with Community Health Systems, Inc. (CHS) stemming from an investigation of a 2014 data breach that exposed personal information of approximately 6.1 million patients, including 45,000 New Jersey residents. This is after CHS agreed to pay $2.3 million in settlement for HIPAA violations alleged by the Office for Civil Rights.

The AG filed a complaint against CHS following the data breach alleging misrepresentation and violation of the New Jersey Consumer Fraud Act because CHS disclosed to consumers that it “employed security measures to protect information from unauthorized disclosure through various means such as encryption.”

The complaint alleged that CHS failed to implement and maintain reasonable security for the personal information that it collected and maintained, failed to provide security and confidentiality of stored information, and permitted unauthorized disclosure of protected health information inconsistent with HIPAA.

CHS and its subsidiary CHSPSC LLC agreed to pay $5 million to 28 participating states. In the final consent judgment, CHS denied the facts as alleged or any liability for the data breach.

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.