A security breach that compromises personal information generally does not affect only one customer. In fact, depending on the size of the company, hundreds or thousands of people may be at risk. When this happens in Tennessee, it is not unheard of for those affected customers to join in mass torts claims to seek compensation from the company responsible for protecting their crucial personal data.
One health insurance company in another state has recently settled a class action lawsuit that resulted after a security breach compromised the private data of almost 80 million people. Anthem, Inc. suffered a cyberattack in 2015, which was discovered when a systems administrator noticed his code being used for unauthorized access to patient information. Anthem offered customers affected by the breach two years of free identification protection service, but the latest settlement adds a cash value to that compensation.
Anthem agreed to pay a $115 million settlement to end the class action litigation. Additionally, the company will allot $15 million to compensate those who claim they suffered financially because of the security breach. Customers can opt for cash instead of the free credit monitoring.
The millions of customers affected by this breach got the attention and action of Anthem through their mass torts claims. Rather than going through individual lawsuits, Tennessee parties injured by large corporations may be entitled to band together and present their claims as a class action. In many cases, a skilled attorney can negotiate a satisfactory settlement, but such a lawyer will also strongly safeguard the clients’ rights if the case goes to trial.
Source: USA Today, “Anthem settles a security breach lawsuit affecting 80M“, Liz Freeman, June 26, 2017