The collection firm behind the recent eight-month data breach that exposed the personal information of nearly 20 million Americans has filed for bankruptcy.
Earlier this month, Quest Diagnostics and LabCorp reported that a breach at American Medical Collection Agency (AMCA) led to the theft of personal and medical information of millions of patients. Now Retrieval-Masters Creditors Bureau, the parent company of AMCA, has filed for bankruptcy citing “enormous expenses” as the reason.
According to the filing, Quest Diagnostics, LabCorp, and two of its other biggest clients — Conduent Inc. and CareCentrix Inc. — stopped doing business with AMCA after the breach.
Additionally, Bloomberg reports the data breach caused a “cascade of events,” which incurred “enormous expenses that were beyond the ability of the debtor to bear.”
“Those expenses included more than $3.8 million spent on mailing more than 7 million individual notices to people whose information had been potentially hacked.”