Quest Diagnostics Data Breach Yields Class Action, AG Probes in 2 States
In the wake of a massive data breach, New Jersey-based laboratory testing company Quest Diagnostics is facing investigations from the attorneys general of Connecticut and Illinois, as well as a putative class action in New Jersey.
June 11, 2019 at 02:00 PM
5 minute read
The original version of this story was published on Connecticut Law Tribune
In the wake of a massive data breach, New Jersey-based laboratory testing company Quest Diagnostics is facing investigations from the attorneys general of Connecticut and Illinois, as well as a putative class action in New Jersey.
The company, headquartered in Secaucus, had said the breach might have exposed the personal information of nearly 12 million Quest patients and 7.7 million Laboratory Corp. of America patients. The breach was reportedly the result of malicious activity on the web payment page of American Medical Collection Agency, a third-party collection vendor for the two medical testing companies.
The June 7 announcement from Connecticut Attorney General William Tong and Illinois Attorney General Kwame Raoul came two days after a prospective class action was filed in New Jersey federal court against Quest, AMCA and Optum360 LLC, which provides billing collection services to the health industry.
In a statement, Tong said the investigation is needed because “sensitive personal information of millions of patients may have been compromised, and I am deeply concerned about the adequacy of the plans in place to notify and protect all affected individuals,” he said. “It is important to determine the cause of this serious data breach and what steps these companies are taking to ensure this does not happen again.”
Meanwhile, Florida plaintiff Traci Julin, a frequent Quest patient, filed the prospective class action June 5 in the U.S. District Court for the District of New Jersey.
Representing the plaintiffs are James Barry of Cherry Hill-based Locks Law Firm, John Yanchunis and Patrick Barthle of Morgan & Morgan in Florida, Michael Galpern of Javerbaum Wurgaft Hicks Kahn Wikstrom & Sinins in Springfield, and Jared Lee of Longwood, Florida-based Jackson Lee.
The 36-page lawsuit says the company failed to properly notify patients of the breach, waiting two months before disclosure.
As “proximate results of defendant's unconscionable or deceptive acts and practices, plaintiff and class members suffered an ascertainable loss in money or property, real or personal … including the loss of their legally protected interest in the confidentiality and privacy of their PII [personally identifiable information],” the suit claims.
The complaint adds: “Defendants have not disclosed the full extent and nature of the data breach, nor offered anything to its patients to address and compensate the harm they have suffered.”
Quest said the exposure occurred between Aug. 1, 2018, and March 30, 2019.
The breach, the lawsuit says, “was a direct result of defendants' failure to implement adequate and reasonable cyber-security procedures and protocols necessary to protect patient PII.”
The lawsuit seeks class certification, monetary damages and a mandatory injunction directing the defendants to adequately safeguard the class' personal information and implement improved security procedures.
No one from Quest's media relations department responded to a request for comment June 7, and the company had not assigned an attorney to represent it in the lawsuit as of that date.
But the company posted a statement on its website, saying: “Quest is taking this matter very seriously and is committed to the privacy and security of our patients' personal information. Since learning of the AMCA data security incident, we have suspended sending collection requests to AMCA. … Quest is working with AMCA and Optum360 to ensure that Quest patients are appropriately notified consistent with the law.”
In an emailed statement, Yanchunis said, “These companies, like Quest Diagnostics, know they are at an increased risk and yet have not taken the proper steps to protect their patients' data. We will fight for justice on behalf of those impacted by this breach.”
Will Rasmussen of New York City-based Brunswick Group, a communications and advisory firm, issued the following statement on behalf of AMCA: “We are investigating a data incident involving an unauthorized user accessing the American Medical Collection Agency system. Upon receiving information from a security compliance firm that works with credit card companies of a possible security compromise, we conducted an internal review, and then took down our web payments page. We hired a third-party external forensics firm to investigate any potential security breach in our systems, migrated our web payments portal services to a third-party vendor, and retained additional experts to advise on, and implement, steps to increase our systems' security. We have also advised law enforcement of this incident. AMCA is providing 24 months of credit monitoring to anyone who had a Social Security number or credit card account compromised, even if the relevant state doesn't require it. We remain committed to our system's security, data privacy, and the protection of personal information.”
No one was available from Optum360's media relations team.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All$10 Million Settlement Reached for Baby Injured by Disconnected Ventilator
3 minute readJury Awards Horizon $2.4 Million for Fraudulent Billing Against 3 NJ Health Care Providers
2 minute readVirtua Drug Tests Pregnancy Patients Without Consent, NJ Attorney General Alleges in New Suit
3 minute readNJ Supreme Court Considers Ability to Add Nonparty Doctors to Med Mal Verdict Sheets
4 minute readTrending Stories
- 1Walter Taggart, Villanova Law Professor, Dies at 81
- 2$2.7M Verdict for Whistleblower Exposes Employer to $300M Claim
- 3Phila. Med Mal Lawyers In for Busy Year as Court Adjusts for Filing Boom
- 4Bonus Parade Continues, With Additional Firms Matching Milbank
- 5Contract Software Unicorn Ironclad Hires Former Pinterest Lawyer as GC
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250