United Health Centers data breach settlement proposed

Photo by Lars Kienle at unsplash.com

published on October 11, 2022 – 5:13 PM
Written by The Business Journal Staff

A class action settlement has been reached in a lawsuit against United Health Centers of the San Joaquin Valley.

The case, pending in Fresno County Superior Court, stems from an Aug. 28, 2021 data breach where United Health Centers (UHC) patient information including birth dates , Social Security numbers, diagnosis information codes, financial account information and more was compromised by a third party.

The class-action complaint filed by Clovis resident and UHC patient Narek Avetisyan said the breach was caused by a ransomware attack by a cybergang called the Vice Society, believed to be based in Russia, according to public reporting from the cybersecurity community.

Avetisyan was notified by a personal data monitoring service on Dec. 8 that his name, social security number and date of birth were detected on the Dark Web as a result of the UHC breach, according to the lawsuit, which also stated he suffered from “stress and anxiety” as a result of his data being exposed.

He accused UHC of negligence, invasion of privacy and violating the Confidentiality of Medical Information Act and Consumer Records Act.

Individuals who were potentially affected by the data breach will be given the option to sign up for the settlement offering and will be provided with three years of free credit monitoring and identity restoration services even if they decide to exclude themselves from the settlement, according to a news release from law firm Meyer Wilson Co., which represents Avetisyan.

Settlement members may also submit claims for up to $2,500 reimbursement for documented losses caused by the security breach.

Settlement members may also submit claims for non-economic losses of up to $500 related to the data breach.

The court will hold its final approval hearing at 3:30 p.m. on Feb. 8, 2023 at the Fresno County Superior Court, during which time the court will consider the proposed settlement, according to the release.