Consumers Affected
4,000,000
Texas Attorney General Ken Paxton issued Civil Investigative Demands to Blue Cross Blue Shield of Texas and Conduent Business Services LLC as part of an investigation into a massive data breach at Conduent that exposed the protected health information of approximately four million Texans. The breach occurred between October 21, 2024 and January 13, 2025, affecting Texas Medicaid recipients and other residents. The AG's office is investigating the security failures and compliance with Texas law.
In-house legal teams should review all contracts with third-party service providers handling protected health information or other sensitive consumer data, ensuring they include robust data security safeguard requirements, clear breach notification timelines, and liability provisions for security failures. Contracts with vendors processing health data should specifically require compliance with applicable state and federal health privacy laws, regular security audits, and incident response protocols. Additionally, teams should verify that vendor agreements include provisions for prompt notification of any unauthorized access to data, as well as indemnification for breaches caused by vendor negligence.
Entity
Blue Cross Blue Shield of Texas and Conduent Business Services LLC
Also known as: Blue Cross Blue Shield and Conduent
Industry
Insurance"Blue Cross Blue Shield of Texas (“BCBS”) and Conduent Business Services LLC (“Conduent”)"
"exposed the sensitive personal data of approximately four million Texans"
"breach of Conduent’s system security that occurred between October 21, 2024 through January 13, 2025. During the breach, an unauthorized third-party accessed the protected health information of Texas residents, including Texas Medicaid recipients"
"Attorney General Ken Paxton"
"part of the investigation of the Conduent data breach"
"any insurance giant cut corners"
Texas Attorney General Ken Paxton issued a consumer alert warning Texans about scams, fraudulent charities, and illegal price gouging related to severe flooding. The guidance provides resources for verifying charities and reporting suspected fraud or price gouging to the AG's office.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.
Texas Attorney General Ken Paxton opened an investigation into LinkedIn Corporation over allegations that the company advertised and profited from fake or misleading job opportunities ("ghost jobs") on its platform. The investigation focuses on whether LinkedIn misled consumers who paid for Premium subscriptions by failing to disclose that a significant percentage of job postings may be inactive or not genuine hiring opportunities.
$45.0M
Attorney General Ken Paxton secured a $45 million multistate settlement with Block, Inc. (Cash App) for misleading consumers about the safety of its platform and failing to protect users from fraud. The settlement requires Cash App to maintain 24-hour customer support, cease deceptive safety claims, and fulfill its legal duty to investigate and reimburse unauthorized transactions.
$13.0M
Texas Attorney General Ken Paxton secured a settlement with Walmart over deceptive practices in its Spark Driver program. Walmart misrepresented driver pay, including failing to pass on customer tips and altering base pay after drivers accepted offers. The $13 million settlement provides direct payments to affected Texas drivers and requires Walmart to implement honest compensation practices.
Texas Attorney General Ken Paxton announced an investigation into StubHub for failing to deliver FIFA World Cup tickets that fans purchased. The investigation focuses on reports of 'ghost ticketing,' where sellers list tickets they do not possess, collect payment, and cancel when unable to deliver.