Data Breach Prompts Class Action Lawsuit Targeting Health Insurance Companies

Gibbs Law Group initiated a class action lawsuit on March 18, 2024, targeting health insurance companies like Change Healthcare Inc., Optum, Inc., and UnitedHealth Group Incorporated following a significant data breach that severely disrupted the infrastructure of the US health care system since mid-February 2024.

The lawsuit alleges that health care providers reliant on Change Healthcare's services were adversely affected, leading to the shutdown of Change Healthcare's computer networks. Consequently, the disruption hindered the verification of insurance for medical procedures and the submission of claims for payments, leaving providers unable to cover essential operational costs such as medical supplies and payroll.

According to court documents filed on March 18, 2024, the American Hospital Association (AHA) characterized the situation as a "devastating loss of revenue." The filing further elaborates that the health care sector has long been susceptible to cyberattacks due to the extensive confidential personal health information and identifying data it stores, which can be exploited for identity theft.

The duration of Change Healthcare's computer network outage remains uncertain, instilling apprehension and uncertainty among providers who await payments impacted by this data breach.

References

Gibbs Law Group files class action lawsuit on behalf of healthcare providers harmed by Change Healthcare data breach. News release. Business Wire. Published March 19, 2024. Accessed March 20, 2024. https://www.businesswire.com/news/home/20240319440890/en/Gibbs-Law-Group-Files-Class-Action-Lawsuit-on-Behalf-of-Healthcare-Providers-Harmed-by-Change-Healthcare-Data-Breach

Gibbs Law Group v Change Healthcare Inc., Optum, Inc., and UnitedHealth Group Incorporated. 3:24-cv-01682 (2024).