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CT AG Alleges Prospect Mismanagement Caused Ransomware Data Breach

Prospect Medical HoldingsFebruary 11, 2025Connecticut Attorney General

Consumers Affected

212,369

Summary

Connecticut filed a statement of interest in the bankruptcy of Prospect Medical Holdings, alleging years of mismanagement that harmed patients and led to a ransomware attack compromising the data of 212,369 residents. The state seeks to ensure a responsible transition of hospitals and hold Prospect accountable for its misconduct.

Contract Impact

In-house legal teams should review contracts with healthcare providers to ensure robust data security and privacy clauses, particularly for health information. Include provisions for bankruptcy scenarios, timely vendor payments to prevent service disruptions, and compliance with healthcare and safety standards. Also, verify data breach notification requirements and response protocols.

Contract Search Terms

data securityhealth information privacybankruptcy sale processvendor payment termspension plan obligationspatient care standardsransomware responsedata breach notificationhospital transition agreementsregulatory compliance

Laws Cited

Bankruptcy Code

Violation Types

Entity Details

Entity

Prospect Medical Holdings

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"Prospect Medical Holdings"
Violation Types
"On July 31, 2023, a threat actor gained access to Prospect’s IT systems, ultimately deploying a malicious ransomware code that locked Prospect out of its own systems and compromised the private data of 212,369 Connecticut residents."
Laws Cited
"the Bankruptcy Code"

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