U.S. District Court Judge Lucy Koh has granted preliminary approval to a $115 million settlement in litigation relating to Anthem Inc.’s 2015 data breach, which exposed the personal and medical information of nearly 80 million customers of the healthcare giant. Lieff Cabraser serves as Class Counsel in the case, along with Altshuler Berzon, Cohen Milstein, and Girard and Gibbs. The settlement includes credit protection and reimbursement for Anthem customers, and if approved, will be the largest data-breach settlement to-date.
The lawsuit alleged the breach occurred in part because of Anthem’s failure to implement and abide by standard security protocols. Because insurers like Anthem collect and store highly sensitive information as part of their business practices, state and federal consumer protection laws require that such information be properly safeguarded and shielded from cybercriminals.
As reported by Law360, Judge Koh found that the proposed settlement, the product of over two years of litigation, was the result of “serious, informed, noncollusive negotiations.” The proposed deal also requires calls for Anthem to guarantee a certain amount of funding for information security and to make changes to its data security systems, and sets aside a $15 million pool to pay any monies class members may have lost as a result of the hack.
Anthem’s customer database was allegedly attacked by international hackers on December 10, 2014. Anthem says it discovered the breach on January 27, 2015, and reported it about a week later on February 4, 2015. The scale of the breach was massive, and included the names, birth dates, social security numbers, billing information, and highly confidential health information of approximately 79 million Anthem customers.
Learn more about the Anthem data breach case.