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SettlementHigh RiskMultistate

Perry Johnson Companies Settle Multistate Medical Data Security Action

Perry Johnson & Associates, Inc.; Perry Johnson, Inc.; Perry Johnson & Associates Coding, Inc.; Perry Johnson & Associates Radiology, Inc.; and Medical Transcription and Coding, Inc.November 6, 2026Connecticut Attorney General

Penalty Amount

$10,000,000

Consumers Affected

13,300,000

Summary

A March 2023 breach exposed personal and protected health information belonging to more than 13.3 million people after hackers accessed the companies’ systems, including unencrypted files, and security alerts were not properly configured. The companies agreed to pay at least $300,000 in penalties, with up to $9.7 million more due if they fail to comply, and to implement extensive security, incident-response, and data-handling reforms.

Remedy

The companies must pay at least $300,000 in penalties and costs, with an additional $9.7 million payable if they fail to meet the agreement’s terms. Companies maintaining protected health information must maintain a comprehensive security program and incident-response protocol; implement safeguards for multifactor authentication, passwords, encryption, and asset management; conduct annual risk assessments consistent with HIPAA; and maintain policies for collection, use, retention, and disposal of personal health information.

Monetary PenaltyInjunctionCompliance Program

Contract Impact

Review vendor and business associate agreements with providers that access, store, or process protected health information, including data-processing and HIPAA-related terms. Confirm contracts require multifactor authentication for remote access, encryption of sensitive files, effective monitoring and security alerts, password and asset management, annual risk assessments, and documented security and incident-response programs. Tighten breach-notification clauses to require prompt notice and cooperation, and verify that data-use, retention, and disposal clauses set clear limits and secure deletion requirements; customer-facing privacy notices and employee access controls should also accurately reflect these safeguards.

Contract Search Terms

information security programincident response protocolmulti-factor authenticationencryption safeguardssecurity alert escalationannual risk assessmentprotected health informationdata retention and disposalbreach notification obligations

Laws Cited

HIPAA

Violation Types

Entity Details

Entity

Perry Johnson & Associates, Inc.; Perry Johnson, Inc.; Perry Johnson & Associates Coding, Inc.; Perry Johnson & Associates Radiology, Inc.; and Medical Transcription and Coding, Inc.

Industry

Healthcare

Multistate Coalition

Michigan Attorney GeneralNew Jersey Attorney General

Official Sources

Source Evidence

Entity Name
"Perry Johnson & Associates, Inc. (PJ&A), Perry Johnson, Inc. (PJI), Perry Johnson & Associates Coding, Inc., Perry Johnson & Associates Radiology, Inc., and Medical Transcription and Coding, Inc."
Fine Amount
"As a result of the coalition’s investigation, the companies will be required to maintain robust security and retention policies and practices and will pay at least $300,000 in penalties to the coalition. If the companies fail to meet the terms of the agreement, they will be liable to pay an additional $9,700,000 to the states."
Laws Cited
"Implementing annual risk assessment programs consistent with HIPAA;"
Violation Types
"Over the following months, hackers harvested passwords and accessed unencrypted files that contained personal and protected health information."
Security Failure
"At the time, PJ&A did not require users to use multi-factor authentication when remotely accessing the company’s systems."
Consumers Affected
"The leaked files contained records associated with more than 13.3 million people."

Related Enforcement Actions

NY

Perry Johnson & Associates, Inc.; Perry Johnson, Inc.; Perry Johnson & Associates Coding, Inc.; Perry Johnson & Associates Radiology, Inc.; and Medical Transcription and Coding, Inc.

$10.0M

A March 2023 breach exposed personal and protected health information associated with more than 13.3 million people after attackers accessed company systems using an employee’s credentials. The Perry Johnson companies agreed to pay at least $300,000, with an additional $9.7 million in penalties due if they fail to meet the agreement, and to implement security, incident response, and health-data handling reforms.

NJ

Perry Johnson & Associates, Inc.; Perry Johnson, Inc.; Perry Johnson & Associates Coding, Inc.; Perry Johnson & Associates Radiology, Inc.; and Medical Transcription and Coding, Inc.

$10.0M

A March 2023 breach at the Perry Johnson companies exposed personal and protected health information belonging to more than 13.3 million people. The companies agreed to pay at least $300,000 in penalties, with an additional $9.7 million payable if they fail to meet the agreement, and to implement security, incident-response, and data-handling reforms.

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