LabCorp hit with class-action lawsuit following data breach that exposed data of 7.7M people

A class-action lawsuit was filed on June 13 in the U.S. District Court in Kansas City, Kan., against Laboratory Corp. of America alleging the medical diagnostic company failed to monitor its billing and collections vendor, according to The Kansas City Star.

The American Medical Collection Agency alerted LabCorp in June that 7.7 million of its consumers may have had their data exposed. LabCorp had contracted AMCA to solicit payments from customers when they failed to pay for medical tests, The Kansas City Star reports.

Information that may have been exposed in the data breach included names, dates of birth, financial information, addresses and phone numbers.

Since the breach, LabCorp has stopped doing business with AMCA. However, the medical diagnostic company does not have a list of the consumers affected.

The lawsuit claims LabCorp violated HIPAA by failing to protect its consumers' data, The Kansas City Star reports.

AMCA has filed for Chapter 11 bankruptcy due to the data breach. The company said it had to take out a $2.5 million loan to cover expenses from the security incident.

More articles on cybersecurity:
70% of health IT execs feel confident in organizations’ data privacy management
Phishing attack on Oregon human services department may have exposed 645,000 people
AMCA files for bankruptcy after massive data breach

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