Breach filing
ArchivedMorley Companies, Inc.: 659,194 individuals, Feb 2022.
Morley Companies, Inc. reported a breach of unsecured protected health information to the HHS Office for Civil Rights on 1 February 2022. The filing records the organisation as a business associate in Michigan and lists 659,194 individuals affected, which makes it the 7th largest of the 238 Michigan filings on the register and the 21st largest of the 718 filings submitted nationally in 2022. Among the 25 Michigan filings made in 2022 it ranks 2nd.
Individuals affected
659,194
As reported to HHS
Modelled cost (IBM 2025)
$105M
Upper bound, method shown
Rank in MI
7th
of 238 Michigan filings
Rank in 2022
21st
of 718 filings nationally
Section F.1 / The filing
As posted by HHS OCR
Every value below is the portal's own field for this filing, plus its rank within the register.
- Covered entity type
- Business Associate
- Individuals affected
- 659,194
- Breach submission date
- 1 February 2022
- Submission year
- 2022
- Type of breach
- Hacking/IT Incident
- Location of breached information
- Network Server
- Business associate present
- Yes
- State
- Michigan (MI)
- Portal status
- listed in the HHS OCR breach portal archive
- Rank in Michigan by size
- 7th of 238
- Rank in 2022 nationally
- 21st of 718
- Michigan median filing
- 3,754 individuals
- Register id (derived)
- MI-20220201-morley-companies
Section F.2 / In context
Where this filing sits in Michigan and in 2022
OCR classifies the incident as a hacking or IT incident, with the breached information held in a network server. Hacking/IT Incident is the type recorded on 148 of the 238 Michigan filings (62%) and on 79% of all filings submitted in 2022. Network Server appears on 45% of Michigan filings.
A business associate is recorded as present on the filing, as it is on 30% of Michigan filings. At 659,194 individuals the breach is 176 times the Michigan median filing of 3,754 and 165 times the national median of 4,000 across all 7,884 filings. It is one of 801 filings of 100,000 or more individuals.
As of 28 August 2026 the case is listed in the HHS OCR breach portal archive. OCR's closing summary of the case is reproduced in full below.
Michigan's breach notification statute (MCL 445.72) requires notice to affected residents without unreasonable delay. Its attorney general threshold: not currently required (pending SB 360 would require it at 100+ residents). The HIPAA Breach Notification Rule ran alongside it: notice to affected individuals and to HHS without unreasonable delay and no later than 60 days after discovery, which is the clock that put this filing on the portal.
Multiplying 659,194 individuals by IBM's $160 customer-PII cost per record (Cost of a Data Breach 2025, the figure the site's calculator uses) gives a modelled $105M; the 2026 edition's $192 gives $127M. Both are modelled estimates with the method shown, not costs disclosed by Morley Companies, Inc.. Because the filing is above the roughly 100,000-record range in which the per-record figure is reliable, the result is an upper bound, not an estimate: fixed costs are spread across far more records at this scale.
Section F.3 / OCR closing summary
The portal's archived description, in full
Written by the Office for Civil Rights when the case was closed and reproduced verbatim from the HHS export.
The covered entity (CE), Morley Companies, reported that it experienced a data security incident that affected the protected health information (PHI) of 659,194 individuals. The PHI involved included names, addresses, dates of birth, health insurance information, medications, conditions, Social Security numbers, and other treatment information. The CE notified HHS, the affected individuals, the media, and provided substitute notice. In response to the breach, the CE provided complimentary credit monitoring services and implemented additional administrative, technical, and security safeguards to better protect its PHI.
Section F.5 / Modelled cost
659,194 individuals through IBM's per-record figures
Modelled cost / method shown, not a disclosed cost
Upper boundIBM 2025 customer PII, $160 per record
$105M
659,194 x $160
IBM 2026 customer PII, $192 per record
$127M
659,194 x $192
Method: individuals affected, as reported by Morley Companies, Inc. to HHS, multiplied by IBM's customer-PII cost per record (Cost of a Data Breach 2025 Figure 6 and the 2026 edition). No cost has been disclosed by the entity for this filing; the figure is a planning estimate, not a fact about the breach. IBM's per-record figures come from mid-volume breaches and IBM cautions against applying them to breaches involving millions of records; the site's per-record page explains where the multiplication holds and where it breaks down.
Context: IBM's average cost of a healthcare breach is $6.64M in the 2026 report ($7.42M in 2025); the global average across all sectors was $4.44M in 2025.
Cost per record: method and limits / Healthcare breach cost, IBM 2026
Section F.6 / Notification clock
Michigan statute and the HIPAA rule
State notification statute
Michigan: MCL 445.72
Identity Theft Protection Act
- Notice to individuals
- Without unreasonable delay
- Attorney general threshold
- Not currently required (pending SB 360 would require it at 100+ residents)
- Private right of action
- No: No PROA under the statute; other theories such as negligence may apply
- Penalty
- Up to $250 per failed notification, capped at $750,000 per breach event
The HIPAA Breach Notification Rule runs alongside the state statute: notice to affected individuals and to HHS without unreasonable delay and no later than 60 days after discovery.
Section F.7 / Peer filings
Michigan filings closest in size
Neighbours by size rank among Michigan filings in 2022, topped up from other years where 2022 has too few. Filings of 10,000 or more link to their own page.
| Covered entity | Type | Individuals | Submitted | Breach type | Location | BA |
|---|---|---|---|---|---|---|
| Wright & Filippis LLC | Healthcare Provider | 877,584 | 18 Nov 2022 | |||
| Warner Norcross and Judd, LLP | Business Associate | 255,160 | 24 Aug 2022 | |||
| Alliance Physical Therapy Group, LLC | Business Associate | 197,588 | 23 Feb 2022 |
Index / Companion schedules
13 HHS breach register
→Hub: every filing, by state, year and entity.
04 Biggest breaches
→Mega-breaches with primary-source cost figures.
Industry / Healthcare
→IBM 2026: $6.64M average, 13 years at #1.
Regulation / HIPAA penalties
→OCR enforcement tiers and the 60-day rule.
11 50-state laws
→Deadline, AG threshold and penalties per state.
Cost / Per record
→Where the per-record model is reliable.
Provenance
Source: U.S. Department of Health and Human Services, Office for Civil Rights, Breach Portal (breaches affecting 500 or more individuals), retrieved 2026-08-28. Public domain. Individuals affected and dates as reported by the covered entity.
Portal: ocrportal.hhs.gov breach report. Statutory basis: HITECH Act section 13402(e)(4): the Secretary must post a list of breaches of unsecured protected health information affecting 500 or more individuals. Breaches affecting fewer than 500 individuals are reported to OCR annually and are not posted, so they are not on this register. Status wording follows the portal's two tabs ("Cases Currently Under Investigation" and "Archive") as of 28 August 2026; a filing moves to the archive when OCR closes the case. Modelled costs on this site are a method applied to the reported count, using IBM Cost of a Data Breach per-record figures, and are never a cost disclosed by the entity. This row: hhs-breach-archive__2026-08-28.csv, export row 2683.
Corrections: if you represent a listed entity and the portal row has been amended, email [email protected] with the portal entry and we will re-pull the export.