Penalty Amount
$250,000
Consumers Affected
82,128
New York Attorney General Letitia James reached a $250,000 settlement with National Amusements, Inc. after an investigation found the movie theater operator failed to implement adequate data security, leading to a breach exposing personal information of over 23,000 New York employees. The company also violated the New York Shield Act by delaying notification to affected individuals for more than a year after the breach. As part of the settlement, National Amusements must pay the penalty and implement enhanced cybersecurity measures including encryption, password policies, and an incident response plan.
National Amusements must pay $250,000 in penalties to New York. The company is required to implement a comprehensive information security program including encryption of all personal information (stored or transmitted), reasonable password policies (complex passwords, rotation, protected storage), a regular testing program to identify and resolve security vulnerabilities, and an incident response plan for data security issues.
In-house legal teams should review all vendor agreements that grant access to employee personal information to ensure they require enforcement of MFA for all access channels, implementation of comprehensive data security programs, and encryption of all personal information both at rest and in transit. Contracts should include clear, legally compliant breach notification timelines (e.g., aligning with the New York Shield Act’s requirements) to avoid delayed notification violations. Teams should also verify that vendor agreements mandate regular vulnerability testing, incident response planning, and password policy standards. For vendors handling employee data, include audit rights to assess compliance with security requirements, and ensure that any breach notification obligations are explicitly defined with strict timing and scope requirements.
Entity
National Amusements, Inc.
Also known as: National Amusements
Industry
Media & EntertainmentOfficial Press Release
https://ag.ny.gov/press-release/2024/attorney-general-james-secures-250000-movie-theater-operator-failing-protect
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New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"Attorney General James Secures $250,000 from Movie Theater Operator for Failing to Protect Employees’ Personal Information"
"November 15, 2024"
"New York Attorney General Letitia James"
"today’s agreement"
"National Amusements, Inc."
"National Amusements will pay New York $250,000 in penalties"
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