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ARTICLE · 15 OCTOBER 2024

Massive Settlements Highlight Urgent Need For Cybersecurity In The Face Of Nation-State Threats

Buchanan Ingersoll & Rooney
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On October 9, 2024, a major U.S. hotel chain reached a settlement with a coalition of 50 state attorneys general to pay $52 million to the states over a series of data breaches between 2014 and 2020.

GlobalTechnology
Michael G. McLaughlin
Michael G. McLaughlin
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On October 9, 2024, a major U.S. hotel chain reached a settlement with a coalition of 50 state attorneys general to pay $52 million to the states over a series of data breaches between 2014 and 2020. The Federal Bureau of Investigation (FBI) attributed the most prominent of these incidents to the People's Republic of China (PRC), highlighting both the increasing cybersecurity threats posed by adversary nations and the stark reality that companies cannot rely on government intervention to protect against sophisticated and well-resourced nation-state cyber actors.

This settlement, involving 49 states and Washington, D.C., addresses a series of incidents that impacted the personal information of over 334 million customers. The Federal Trade Commission (FTC) enforcement action mandated the implementation of a comprehensive information security program, which requires annual compliance certification for the next 20 years.

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