Penalty Amount
$21,000,000
Consumers Affected
7,000,000
AMCA suffered an eight-month data breach from August 2018 to March 2019, exposing personal information including Social Security numbers, payment card data, and medical test details of over 7 million individuals nationwide, including 246,000 New Jersey residents. The multistate settlement requires AMCA to implement enhanced data security measures and pay $21 million, though payment is suspended due to the company's financial situation.
AMCA must create and implement an information security program with an incident response plan, employ a qualified Chief Information Security Officer, hire a third-party certified auditor for security assessments, and cooperate with state attorneys general in related investigations, along with paying a suspended $21 million penalty.
In-house legal teams should review all vendor agreements with healthcare service providers, data processing agreements, and business associate agreements (BAAs) under HIPAA. Specifically scrutinize clauses governing data security standards, breach notification timelines and procedures, audit rights, data encryption requirements, and indemnification provisions for data breaches. Given the settlement's focus on inadequate security leading to exposure of SSNs, payment cards, and medical information, contracts may need amendments to mandate specific technical safeguards (e.g., encryption, access controls), require regular security audits by the vendor, clarify breach reporting obligations (including to state attorneys general), and strengthen liability and remediation terms.
Entity
Retrieval-Masters Creditors Bureau d/b/a American Medical Collection Agency
Also known as: American Medical Collection Agency
Industry
HealthcareOfficial Press Release
https://www.njoag.gov/ag-grewal-announces-multistate-settlement-with-american-medical-collection-agency-over-2019-data-breach/
NJ AMCA Complaint
https://www.nj.gov/oag/newsreleases21/NJ-AMCA-Complaint.pdf
NJAMC Consent Judgment
https://www.nj.gov/oag/newsreleases21/NJAMC-Consent-Judgment.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"Retrieval-Masters Creditors Bureau d/b/a American Medical Collection Agency (AMCA)"
"Although ACMA also agreed to pay $21 million"
"an unauthorized user gained access to the company’s internal system, collecting a broad array of personal information. The information included Social Security numbers, payment card information and, in some instances, the names of medical tests and diagnostic codes."
$18.0M
Attorney General Jennifer Davenport joined a bipartisan coalition of 42 attorneys general in announcing a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised genetic data of 6.9 million people worldwide, including nearly 150,000 in New Jersey. The settlement provides $18 million to states from available bankruptcy funds, plus enhanced data security and consumer deletion rights for the successor entity, 23andMe Research Institute.
$45.0M
Block, Inc. agreed to a $45 million multistate settlement with 46 states for allegedly misleading consumers about the safety of Cash App, failing to protect users from fraud, and not providing promised fraud protection. The settlement requires Block to improve customer support, stop misleading claims, and educate consumers about fraud.
Attorney General Jennifer Davenport co-led a coalition of 49 attorneys general in calling on the FCC to strengthen rules to cut off scammers' access to legitimate telephone numbers. The coalition's letter requests stronger certification rules, regular reporting, and prohibitions on number cycling to combat illegal robocalls.
Governor Sherrill and Attorney General Davenport announced coordinated executive actions to reduce and eliminate junk fees in New Jersey. The initiative includes an Executive Order directing state agencies to review industries for junk fees and an Enforcement Statement from the Division of Consumer Affairs explaining how junk fee practices may violate the New Jersey Consumer Fraud Act.
The New Jersey Bureau of Securities announced its 2026 annual investment adviser examination, with a particular focus on firms' use of artificial intelligence and cybersecurity protocols. The examination requires nearly 800 registered investment adviser firms to answer questions about AI use in portfolio management, data protection policies, and third-party vendor due diligence. Failure to comply may result in administrative action.
The New Jersey Bureau of Securities filed a lawsuit against Xiao Hu (aka Mark Hu) and his companies Skyline Technology USA LLC and Thunderbirds.ME, Inc. for allegedly defrauding at least 15 investors out of $2.5 million through unregistered securities offerings. Hu allegedly misappropriated at least $280,000 for personal expenses including a home purchase and vacation, and falsely claimed to have a Ph.D. from Columbia University.