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SettlementHigh RiskMultistate

Multistate AGs Fine Enzo Biochem $4.5M for Health Data Breach

Enzo Biochem, Inc.August 13, 2024Connecticut Attorney General

Penalty Amount

$4,500,000

Consumers Affected

2,400,000

Summary

Connecticut Attorney General William Tong, along with New York and New Jersey attorneys general, secured a $4.5 million settlement from Enzo Biochem, Inc. for failing to protect patient health data, resulting in a ransomware attack that compromised 2.4 million patients' information. Enzo must pay the fine and implement enhanced cybersecurity measures including multi-factor authentication and annual risk assessments.

Remedy

Enzo must pay $4.5 million and adopt comprehensive cybersecurity measures such as maintaining an information security program, implementing multi-factor authentication, encrypting personal information, conducting annual risk assessments, and developing an incident response plan.

Monetary PenaltyCompliance ProgramAudit Requirement

Contract Impact

In-house legal teams should review vendor agreements (especially those handling health data), customer/patient consent forms, and employee access policies for clauses related to data security, breach notification, and compliance with health data regulations. Specific clauses to examine include data protection standards, incident response timelines, audit rights, and requirements for multi-factor authentication and regular risk assessments. Given the ransomware attack stemming from poor credential management (shared, outdated logins), agreements should be updated to enforce strong authentication practices, encryption requirements, mandatory security training for personnel, and clear accountability for third-party subcontractors.

Contract Search Terms

data security clausemulti-factor authentication requirementrisk assessment provisionhealth data protectionbreach notification timelineemployee credential managementransomware mitigationHIPAA business associate agreementthird-party vendor securityencryption standards

Violation Types

Entity Details

Entity

Enzo Biochem, Inc.

Also known as: Enzo Biochem

Industry

Healthcare

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"Enzo Biochem, Inc. (Enzo)"
Fine Amount
"$4.5 million"
Violation Types
"failing to adequately safeguard the personal and private health information of its patients"

Related Enforcement Actions

NY

Enzo Biochem, Inc.

$4.5M

New York Attorney General Letitia James, along with the Attorneys General of Connecticut and New Jersey, settled with Enzo Biochem, Inc. for $4.5 million over a 2023 ransomware attack that exposed health and personal data of 2.4 million patients, including 1.4 million New York residents. The investigation found Enzo had inadequate data security practices, including shared employee login credentials, lack of multi-factor authentication, no suspicious activity monitoring, and unencrypted personal information. As part of the settlement, Enzo will pay the penalty and implement enhanced cybersecurity measures including MFA, encryption, risk assessments, and an incident response plan.

NJ

Enzo Biochem, Inc.

$4.5M

Enzo Biochem, Inc. agreed to pay $4.5 million and strengthen its cybersecurity practices to settle allegations that deficient data security led to a ransomware attack exposing the health data of 2.4 million patients. The multistate enforcement action was led by New Jersey with New York and Connecticut.

CT

National Highway Traffic Safety Administration

Connecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.

CT

U.S. Environmental Protection Agency

Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.

CT

Sandoz Inc. and Fougera Pharmaceuticals Inc.

$400.0M

Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.

CT

U.S. Department of Homeland Security

Connecticut Attorney General William Tong joined a coalition of 21 attorneys general in submitting a comment letter opposing a DHS rule that allows certain affirmative asylum applications to be referred to removal proceedings without an asylum officer interview. The coalition argues the rule violates federal law and harms asylum seekers, including unaccompanied children; this was a policy opposition letter, not a privacy enforcement action.