AvMed Data Breach Settlement First to Extend Payments to Plaintiffs Who Did Not Suffer Identity Theft

A class action settlement concluding a data breach lawsuit against insurer AvMed will be the first such settlement to offer financial remuneration to class action members who did not suffer identity theft following the breach.

The case stems from a December 2009 incident in which two unencrypted laptop computers containing the personal and medical information of 1.2 million AvMed customers were stolen from a conference room.

In the original 2010 suit, several AvMed customers alleged claims for damages and injunctive relief against the insurer for failing to properly secure their information in accordance with HIPAA.

After several years of litigation and appeals, the plaintiffs have now filed an unopposed motion for a class action settlement that not only provides monetary damages for customers who suffered identity theft but also provides for a $3 million settlement fund from which current and former members can make claims for $10 for every year they were AvMed customers, thereby recouping the part of their premiums that should have been used on data security.

This benefit has never before been included in a data breach settlement. Traditionally, only plaintiffs who have suffered financial or other consequences from a data breach have been eligible for damages. This settlement may influence the size and scope of future data breach settlements, according to law firm ReedSmith.

More Articles on Data Breach Suits:

Court Dismisses Class Action Suit Over UCLA Data Breach
21 Recent Investigations, Lawsuits and Settlements Involving Hospitals
Advocate Data Breach Update: Class Action Lawsuit Filed

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