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FBI Warns of Call Log Breach Following Hack of AT&T’s System

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The FBI has warned its agents that a significant data breach of AT&T’s system last year likely resulted in hackers stealing months’ worth of call and text logs, potentially compromising the identities of confidential informants. This breach, which impacted all FBI devices using AT&T’s public safety network, included sensitive information such as mobile phone numbers and the numbers agents communicated with, according to reports from Bloomberg News.

The breach occurred in April 2022, when hackers downloaded data from around 109 million customer accounts, which included records of calls and texts. The stolen records, while not containing the content of the communications, could still expose sensitive connections between FBI agents and their informants. This raises serious concerns about the security of confidential sources, especially since the breach could link agents to their secret sources.

In a communication to FBI agents across the country, the agency warned that their activities on the AT&T network were likely among the stolen data, putting both agents and their sources at risk. An FBI spokesperson emphasized the agency’s duty to safeguard the identities and safety of its confidential informants, who often provide critical information at great personal risk.

AT&T spokesperson Alex Byers responded to the breach, stating that the company had worked closely with law enforcement to mitigate the impact on government operations following the incident. This breach is part of a broader concern about cyber-espionage targeting U.S. telecom networks. The U.S. government has responded to these threats, including recent steps to counter Chinese-linked cyber-espionage efforts against U.S. telecom companies.

While AT&T and other major telecom firms such as Verizon have confirmed their networks were targeted by cyber hackers, they also assured that their systems are now secure after cooperating with U.S. law enforcement and government agencies.

 

Novartis Must Face Whistleblower Claims of Paying Kickbacks for MS Drug Promotion

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A U.S. appeals court on Friday revived a whistleblower lawsuit against Swiss pharmaceutical company Novartis, accusing the company of paying illegal kickbacks to doctors to promote its multiple sclerosis drug, Gilenya. The 2nd U.S. Circuit Court of Appeals in Manhattan ruled 3-0 that Steven Camburn, a former Novartis sales representative, can proceed with his claims that Novartis violated the federal False Claims Act through fraudulent “sham” speaker events designed to increase Gilenya sales.

Camburn alleges that Novartis paid doctors substantial sums of money and treated them to dinners at upscale restaurants to speak at events that were presented as educational but were actually social gatherings. These events allegedly led to fraudulent claims being submitted to government health insurance programs, including Medicare, Medicaid, and TRICARE, for Gilenya prescriptions influenced by kickbacks.

Circuit Judge Myrna Perez stated that Camburn’s allegations—including the holding of speaker events with minimal attendance, excessive payments for canceled events, and selecting doctors who would promote prescriptions—created a “strong inference” of Novartis’ intent to induce fraud. The court aligned with other federal appeals courts, agreeing that when compensation has the purpose of inducing the purchase of federally reimbursable healthcare products, it violates the federal Anti-Kickback Statute.

The decision reversed a September 2022 dismissal by U.S. District Judge Kimba Wood and sent the case back to her court for further proceedings. Camburn’s lawyer, James Miller, expressed confidence in addressing the core allegations in court.

Camburn filed the lawsuit in May 2013, shortly after Gilenya was approved for federal use. The drug’s sales have since declined due to competition from generics, dropping from $3.22 billion in 2019 to $925 million in 2023, with only $443 million in sales in the first nine months of 2024.

In 2020, Novartis agreed to pay over $729 million to settle U.S. government charges for similar kickback violations. The case is identified as US ex rel Camburn v. Novartis Pharmaceuticals Corp, 2nd U.S. Circuit Court of Appeals, No. 22-2708.