Four possible class-action lawsuits have emerged in the wake of Clover Health’s data breach.
The Medicare Advantage insurer disclosed a cybersecurity incident July 17. An unauthorized party gained access to some health plan employees’ accounts through social engineering earlier that month. While those accounts did not have access to corporate financial or claims systems, they did contain some personally identifiable information and protected health information.
Individuals filed three of the four lawsuits, while one group of three people filed the other. All of the lawsuits were filed in the U.S. District Court for the Middle District of Tennessee, according to Clover’s second-quarter financial filings. The complaints, filed from July 22 through July 24, included allegations of unjust enrichment, negligence and breach of implied contract. One lawsuit called Clover’s actions in regards to the data breach “unconscionable.”
Clover’s financial report said it “intends to vigorously defend these matters.” The company also said it is too early to estimate any potential loss.
Becker’s contacted Clover and will update this story if more information becomes available.
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.
