Court Rules
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SettlementMedium Risk

NY AG Settles with OrthopedicsNY for $500K Over Data Security Failure

OrthopedicsNY, LLPDecember 26, 2025New York Attorney General

Penalty Amount

$500,000

Consumers Affected

656,000

Summary

New York Attorney General Letitia James secured a $500,000 settlement with orthopedics practice OrthopedicsNY, LLP for failing to implement adequate data security measures, leading to a 2023 cyberattack that exposed personal and health information of approximately 656,000 patients and employees. The settlement requires OrthopedicsNY to pay the penalty, fund one year of free credit monitoring for affected individuals, and adopt enhanced data security practices including multifactor authentication, encryption, and annual risk assessments.

Remedy

OrthopedicsNY must pay $500,000 in penalties and costs to the state, fund one year of free credit monitoring for all 656,000 affected patients and employees, implement a comprehensive information security program with access limits, multifactor authentication for remote access, data encryption, network monitoring for anomalous activity, and conduct annual risk assessments to identify data security risks.

Monetary PenaltyCompliance ProgramAudit Requirement

Contract Impact

In-house legal teams should review all agreements with healthcare vendors and service providers that handle patient or employee personal data to ensure robust data security requirements. Contracts should mandate implementation of multifactor authentication for remote access, encryption of sensitive data at rest and in transit, and annual risk assessments. Agreements must also require vendors to maintain comprehensive information security programs with strict access controls and network monitoring, and include clear penalties for security failures that lead to breaches. Additionally, contracts should address breach notification obligations and require vendors to fund credit monitoring or similar remediation for affected individuals in the event of a data breach.

Contract Search Terms

multifactor authenticationdata encryptionannual risk assessmentinformation security programaccess control policiesnetwork monitoringhealth data safeguardsbreach credit monitoring

Violation Types

Entity Details

Entity

OrthopedicsNY, LLP

Also known as: OrthopedicsNY

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"OrthopedicsNY, LLP"
Fine Amount
"$500,000"
Event Date
"December 26, 2025"
Violation Types
"failed to implement reasonable data security practices designed to protect patients’ information"
Violation Types
"attackers then downloaded unencrypted files containing sensitive private personal and health care information of approximately 656,000 individuals"
Violation Types
"exposing the information of more than 650,000 patients and employees"

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