Health Provider in Arizona to Pay $6M Settlement in Breach

December 24, 2019

A Phoenix, Ariz.-based health provider has agreed to settle a lawsuit over a computer data breach that may have compromised health and personal data of about 3 million patients, employees, health insurance customers and others.

The class action lawsuit against Banner Health stemmed from a 2016 cyberattack that exposed the information, The Arizona Republic reports.

The settlement, up to $6 million, includes free insurance coverage for claims of up to $1 million to cover financial losses and two years of free credit monitoring through Identity Guard Total, officials said.

When the breach occurred, Banner Health initially gave those affected a year of free credit monitoring, officials said.

Those affected would be able to file claims for up to $500 for ordinary expenses or up to $10,000 for extraordinary expense reimbursement such as lost time at work or professional help with identity theft issues under the settlement agreement, company officials said.

“All things considered, this settlement compares very favorably with those that have been approved in other data breach cases,” said Andrew Friedman, one of the lawyers representing the plaintiffs.

The settlement was granted preliminary approval and is subject to final court approval April 21, officials said.

“This is still a pending legal matter, so we are unable to discuss details. However, we are hopeful that it will be resolved soon, at which time those who were impacted can learn additional information,” provider spokeswoman Becky Armendariz said.

Banner Health has also agreed to improve its information security systems, officials said.

“In the meantime, data security is one of our highest priorities and we continue to work diligently to protect the sensitive information of our patients and employees,” officials said.

Topics Cyber Medical Professional Liability Arizona

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