Penalty Amount
$200,000
Consumers Affected
1,654
ATA Consulting LLC, operating as Best Medical Transcription, settled for $200,000 over a 2016 server misconfiguration that publicly exposed health records of up to 1,654 patients. The settlement includes civil penalties and permanently bars the owner from operating a business in New Jersey. The breach violated HIPAA and the New Jersey Consumer Fraud Act due to inadequate security and failure to promptly notify affected individuals.
Defendants must pay $200,000 in civil penalties and costs, with $30,508 due within 30 days and the remainder suspended upon compliance. Owner Tushar Mathur is permanently enjoined from owning, managing, or holding a leadership position in any New Jersey business.
In-house legal teams should review all vendor and business associate agreements where the vendor handles protected health information (PHI), particularly medical transcription services. Focus on clauses mandating compliance with HIPAA security and privacy rules, specific technical security requirements (e.g., encryption, access controls), breach notification timelines (including 'without unreasonable delay' standards), and data retention/destruction provisions. Agreements may need amendments to require mandatory security audits, stronger password/authentication protocols for web portals, and explicit indemnification for HIPAA violations. Customer agreements with healthcare clients should also be checked for flow-down security obligations and liability caps related to data breaches.
Entity
ATA Consulting LLC
Also known as: Best Medical Transcription
Industry
HealthcareOfficial Press Release
https://www.njoag.gov/defunct-georgia-vendor-responsible-for-exposing-virtua-medical-group-patient-files-online-agrees-to-200000-settlement-owner-of-transcription-service-agrees-to-permanent-ban-on-owning-an-nj-busin/
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"ATA Consulting LLC, which did business as Best Medical Transcription"
"a $200,000 settlement"
"federal Health Insurance Portability and Accountability Act (“HIPAA”)"
"New Jersey Consumer Fraud Act (“CFA”)"
"in connection with a server misconfiguration that publically exposed the private health information"
$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.