The Lyon Firm Files Class Action Medscan Data Breach Complaint

Written by The Lyon Firm on May 10, 2022. Posted in Data Breach, Lyon Firm In News.

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Plaintiffs are suing Medscan Laboratory (Adaptive Health Integrations) after a security incident that may have compromised personally identifiable information that may include full names, Social Security numbers, addresses, dates of birth, and phone numbers.

Medscan, headquartered in Williston, North Dakota, provides healthcare billing services for physicians’ offices and other healthcare companies. The Medscan billing software is used to process healthcare claim submissions and electronic claim remittances.

On October 17, 2021, an unauthorized third party gained access to the Medscan network and accessed records that contained the PII of more than 510,000 individuals.

In April 2022, approximately two months after the data breach was confirmed, the company began notifying impacted individuals.

Attorneys argue that by obtaining, collecting, using, and deriving a benefit from the data of individuals, Medscan assumed legal and equitable duties to those individuals to protect and safeguard that information from unauthorized access and intrusion.

The complaint alleges the data breach occurred due to Adaptive Health’s negligent acts and failure to protect the PII of the plaintiffs. Victims are now at a significant risk of identity theft and various other forms of personal, social, and financial harm.