A California state appeals court dismissed a class action lawsuit patients brought against Sacramento-based Sutter Health finding the patients had no standing to sue the organization after a computer containing 4.2 million patient records was stolen in October 2011, according to a Sacramento Bee report.
After learning of the breach, patients began filing lawsuits alleging Sutter Health violated California's Confidentiality of Medical Information Act, which were then compiled into a class action suit. The suit sought $1,000 in compensation for each patient, which would have totaled more than $4 billion.
The court ruled since it has not been shown the stolen medical records have been accessed, nor did the patients allege they had been accessed, there is no standing for patients to seek civil damages as the confidentiality statute requires proof of access by an unauthorized person, according to the report.
The stolen computer was password-protected but not encrypted.
More Articles on Healthcare Lawsuits:
5 Recent Employee Whistle-Blower Cases
Fourth Circuit Contradicts D.C. Circuit Concerning PPACA Subsidies
Infirmary Health System to Pay $24.5M to Settle FCA, Stark Law and Anti-Kickback Allegations