Banner Health agrees to pay $6M to settle data breach lawsuit

Phoenix-based Banner Health has agreed to pay $6 million to patients involved in a class-action lawsuit over a 2016 data breach, according to BankInfoSecurity.com.

A federal court approved the preliminary settlement Dec. 5. The case was a consolidation of 11 class-action lawsuits brought against Banner Health. The $6 million will reimburse approximately 2.9 million individuals for expenses related to the breach.

Additionally, Banner Health will implement "extensive information security improvements." The health system plans to incorporate a set of "future business practice commitments," according to documents cited by BankInfoSecurity.com.

Banner Health did not return a request for comment from BankInfoSecurity.com.

In 2016, an unauthorized third party gained access to Banner Health's payment care processing systems at various food and beverage outlets at Banner Health. With the access, the unauthorized third party eventually gained the ability to view patient information.

Patient data that may have been exposed included names, credit card numbers, verification codes, health plan information, beneficiary information, clinical information, provider names and Social Security numbers.

More articles on cybersecurity:
Michigan insurer alerts members of data breach
Sentara Hospitals agrees to $2.2M HIPAA settlement for incorrectly reporting data breach
16 cybersecurity incidents in November

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