Nebraska Attorney General Mike Hilgers announced last week that a district court denied Change Healthcare’s motion to dismiss claims for alleged consumer protection and data privacy violations, allowing the state’s lawsuit against Change Healthcare, UnitedHealth Group, and Optum to move forward.
The Attorney General after a breach of Change Healthcare’s systems caused statewide disruptions. The breach compromised highly sensitive medical, personal, and financial information and created significant operational challenges for hospitals, pharmacies, and healthcare providers across Nebraska.
In her order, Judge Susan Strong of the Lancaster County District Court rejected defendants’ arguments and found that the state sufficiently alleged all violations of Nebraska’s consumer protection and data privacy laws. The Court also underscored the magnitude of the breach, noting that the cyberattack exposed the sensitive personal and medical information of nearly 900,000 Nebraskans.
The case moves into the next phase of litigation, where the state will continue to pursue recovery from the defendants for their alleged security failures and delays in notifying Nebraskans of the breach.
The state seeks to permanently enjoin defendants from continuing to engage in the alleged unlawful acts and practices, and also requests civil penalties, direct economic damages, restitution and costs and fees.
Source: Nebraska Attorney General’s Office
Topics Lawsuits
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