NEWS

Perry Johnson Companies Settle With 4 States Over 2023 Breach of 13.3M Patients

Connecticut, New Jersey, New York and Michigan secured up to $10 million and a corrective action plan after a breach that lacked MFA.

Dylan H.

News Desk

November 7, 2026
2 min read
Perry Johnson Companies Settle With 4 States Over 2023 Breach of 13.3M Patients

Four state attorneys general announced on 6 November 2026 a settlement with the Perry Johnson companies, the Nevada-based parent of medical transcription, coding and imaging subsidiaries, over a 2023 data breach affecting 13.3 million people. Connecticut, New Jersey, New York and Michigan brought the case.

The Breach

Five companies are covered: Perry Johnson & Associates (PJ&A), Perry Johnson, Inc., PJ&A Coding, PJ&A Radiology, and Medical Transcription and Coding, Inc. The breach began in March 2023 and affected about 4.2 million New Yorkers. The New York AG's investigation found that attackers got in with a PJ&A Coding employee's credentials, and the company did not use multi-factor authentication. Data theft allegedly continued for two months, and the company reportedly learned of it only when the hackers told it.

Settlement Terms

  • The company pays $300,000 now.
  • If it fails to complete the required cybersecurity reforms, it owes the states another $9.7 million, hence the "up to $10 million" headline.
  • New York receives at least $100,000.
  • Required controls include MFA, encryption, annual risk assessments and incident-response protocols. Several access-control requirements stay enforceable for seven years.

Takeaways

The case is another example of regulators treating missing MFA on remote access as a baseline failure. Vendors that process protected health information for many providers concentrate risk, and downstream customers should verify the controls of their business associates.

Sources