June 20th Cyber-security News

Don’t let a breach bankrupt your company.

Data Breach Forces AMCA’s Parent Firm to File Chapter 11 Bankruptcy

The medical bill collection firm Retrieval-Masters Creditors Bureau Inc. has filed for Chapter 11 bankruptcy protection citing the fallout from a massive data breach that exposed the information of millions of patients.

Retrieval-Masters Creditors Bureau Inc., which collects debts from medical labs under the name American Medical Collection Agency (AMCA) filed in the Southern District of New York with the aim of liquidating the company, court documents stated.

Company founder and CEO Russell H. Fuchs told the court the Chapter 11 filing is the direct result of a data breach it became aware of in March 2019 that exposed the PHI of millions of patients, many belonging to Quest Diagnostics and LabCorp – AMCA’s largest customers. A subsequent investigation showed the breach may have been opened in August 2018.