WellPoint Near Agreement on Large Breach Class Action Suit
Under terms of settlement, health insurer would provide credit monitoring and identity theft protection to victims of data breach.
Insurance Networking News, July 20, 2011
Health insurer WellPoint Inc. would provide 600,000 individuals "potentially" affected by a data breach two years of paid credit monitoring and identity theft protection services, and another five years protection to any individuals found to be a victim of identity theft or loss because of the breach, according to a preliminary class action settlement, HealthCareInfoSecurity.com reports.
The settlement, under which out-of-pocket reimbursements for losses would be capped at $1,500, is in addition to a recent settlement of a lawsuit that Indiana Attorney General Greg Zoeller filed on behalf of 32,051 individuals in his state.
WellPoint agreed to the larger class action settlement, for which the Orange County, Calif., Superior Court has granted preliminary approval, even though the company has since determined the breach affected only Indiana individuals. In the Indiana settlement, which included a $100,000 fine and other provisions, WellPoint admitted to its failure to properly notify Zoeller as required under state law.
This article was reprinted with permission from Health Data Management.
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