Client Alert: Fifth Circuit Vacates $4.3M in HIPAA Civil Penalties Offering New View of HHS Regulations
Publications
January 20, 2021
On January 14, 2021, the Fifth Circuit vacated a $4.3 million penalty imposed by the US Department of Health and Human Services (HHS) on M.D. Anderson Cancer Center (M.D. Anderson) in connection with three data incidents experienced by the center. University of Texas M.D. Anderson Cancer Center v. United States Department of Health and Human Services, No. 19-6022 (5th Cir. January 14, 2021). In vacating the penalty, the Fifth Circuit held that (1) HHS had not shown that the loss of unencrypted electronic protected health information (PHI) on its own was sufficient to demonstrate a breach of any HIPAA rules and (2) the penalty imposed on M.D. Anderson was arbitrary, capacious, and unlawful because it exceeded HHS’ authority. Id. The Court’s decision potentially will have ripple effects for the future of HIPAA enforcement actions, including potentially spurring HHS to create new regulations. In the meantime, the University of Texas ruling could mean that fewer companies will report lost or stolen devices as a HIPAA data breach, turning on its head years of prior practice. Either way, the Fifth Circuit’s decision is a big one in terms of HIPAA enforcement.
To view the full alert, click here.
Related Capabilities
Related Locations
© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.
Publications
January 20, 2021
On January 14, 2021, the Fifth Circuit vacated a $4.3 million penalty imposed by the US Department of Health and Human Services (HHS) on M.D. Anderson Cancer Center (M.D. Anderson) in connection with three data incidents experienced by the center. University of Texas M.D. Anderson Cancer Center v. United States Department of Health and Human Services, No. 19-6022 (5th Cir. January 14, 2021). In vacating the penalty, the Fifth Circuit held that (1) HHS had not shown that the loss of unencrypted electronic protected health information (PHI) on its own was sufficient to demonstrate a breach of any HIPAA rules and (2) the penalty imposed on M.D. Anderson was arbitrary, capacious, and unlawful because it exceeded HHS’ authority. Id. The Court’s decision potentially will have ripple effects for the future of HIPAA enforcement actions, including potentially spurring HHS to create new regulations. In the meantime, the University of Texas ruling could mean that fewer companies will report lost or stolen devices as a HIPAA data breach, turning on its head years of prior practice. Either way, the Fifth Circuit’s decision is a big one in terms of HIPAA enforcement.
To view the full alert, click here.
Related Capabilities
Related Locations
© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.
News and Insights
Event
Associate Steven Arango to Speak at the Veterans' Legal Career Fair
On September 18, Associate Steven Arango will speak on a panel at the Veterans' Legal Career Fair (VLCF), the only legal career fair in the United States dedicated to veterans, active-duty service members, and military spouses.
September 18, 2026
Publications
In American Banker, Partner Laurel Loomis Rimon Weighs in on OCC's Handling of Fintech Bank Charter Applications
Partner Laurel Loomis Rimon spoke with American Banker about how the Office of the Comptroller of the Currency is approaching bank charter applications from fintechs, amid a growing wave of companies seeking charters from federal regulators.
August 18, 2026
Event
Partner David Greenwald to Speak at PLI Program on Privilege and AI
On August 17, David Greenwald will speak at "Fitting New “Tech” Into the Attorney-Client Privilege and Work Product Protection," a virtual program hosted by the Practising Law Institute (PLI).
August 17, 2026
Publications
Special Counsel Kimberly Cook Featured in FCBA Member Spotlight
The Federal Communications Bar Association (FCBA) featured Kimberly Cook in its Member Spotlight series.
August 13, 2026
Recognition
Three Jenner & Block Partners Named to Crain's New York Business' 2026 Notable Leaders in Accounting, Consulting & Law List
Crain's New York Business recognized Jenner & Block Partners Anthony Barkow, Alison Stein, and Damian Williams among its 2026 Notable Leaders in Accounting, Consulting & Law.
August 10, 2026