[BreachExchange] Flowers Hospital settles lawsuit 5 years after data breach

Destry Winant destry at riskbasedsecurity.com
Thu Dec 27 08:39:07 EST 2018


https://www.beckershospitalreview.com/legal-regulatory-issues/flowers-hospital-settles-lawsuit-5-years-after-data-breach.html

A lawsuit filed against Dothan, Ala.-based Flowers Hospital involving
a 2014 data breach was dismissed in a settlement, according to Alabama
CBS-affiliate WTVY.

The lawsuit against the hospital stems from a 2014 data breach, in
which a former employee stole patient information from the hospital's
laboratory to file fraudulent federal income tax returns. The employee
was arrested in 2014 and served a prison sentence. The lawsuit claimed
the hospital did not take adequate measures to prevent the incident.

Under the approved settlement, Flowers Hospital agreed to appropriate
$150,000 to about 1,200 patients possibly affected by the breach. The
maximum award is $5,000 per person, but most patients are expected to
receive no more than $250. Patients who filed claims will be
reimbursed for out-of-pocket credit monitoring costs, receive up to
four hours in lost wages and be paid interest on delayed tax refunds,
according to the report.


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