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Electromed Theft of Information in Data Breach Class Action

Electromed, Inc. experienced a cyberattack and data breach in June 2021 that exposed the information of over 47,000 customers and employees. The complaint for this class action alleges that the harm caused to these people is Electromed’s responsibility because, it says, the company “maintained the Private Information in a reckless and negligent manner. In particular, the Private Information was maintained on [Electromed’s] computer system and network in a condition vulnerable to cyberattacks.”

A class and a subclass have been defined for this action:

  • The Class is all persons Electromed identified as being among those affected by the data breach, including all those who were sent a notice about the data breach.
  • The California Subclass is all residents of California who Electromed identified as being among those affected by the data breach, including all those who were sent a notice of the data breach.

Electromed develops, makes, and sells medical equipment, including the SmartVest, which the complaint describes as “an airway clearance system, to patients with compromised pulmonary function.” The complaint alleges, “As a condition of purchasing goods and services from” the company, “Electromed requires that its customers entrust it with highly sensitive personal information.”

Electromed found suspicious activity in its systems on June 16, 2021. An investigation concluded that unauthorized parties had gotten access to private information. The compromised information included names, addresses, medical history, condition, and treatment, and health insurance information. The complaint alleges that Electromed also had Social Security numbers on file, which, if stolen, would make the company’s customers and employees even more vulnerable to fraud and identity theft.

The complaint alleges, “In light of recent high-profile data breaches at other companies in the healthcare industry, [Electromed] knew or should have known that their electronic records would be targeted by cyber criminals.”

“Indeed,” the complaint continues, “cyberattacks have become so notorious that the FBI and U.S. Secret Service have issued a warning to potential targets so they are aware of, and prepared for, a potential attack. As one report explained, ‘[e]ntities like smaller municipalities and hospitals are attractive … because they often have lesser IT defenses and a high incentive to regain access to their data quickly.’”

The Federal Trade Commission (FTC) publishes guidelines for businesses, including Protecting Personal Information: A Guide for Business. The complaint claims that Electromed did not follow these guidelines and did not comply with industry standards for protecting information.

The counts include negligence and negligence per se, and violations of the California Confidentiality of Medical Information Act and California Consumer Privacy Act.

Article Type: Lawsuit
Topic: Privacy

Most Recent Case Event

Electromed Theft of Information in Data Breach Class Action

October 6, 2021

Electromed, Inc. experienced a cyberattack and data breach in June 2021 that exposed the information of over 47,000 customers and employees. The complaint for this class action alleges that the harm caused to these people is Electromed’s responsibility because, it says, the company “maintained the Private Information in a reckless and negligent manner. In particular, the Private Information was maintained on [Electromed’s] computer system and network in a condition vulnerable to cyberattacks.”

Electromed Theft of Information in Data Breach Class Action

Case Event History

Electromed Theft of Information in Data Breach Class Action

October 6, 2021

Electromed, Inc. experienced a cyberattack and data breach in June 2021 that exposed the information of over 47,000 customers and employees. The complaint for this class action alleges that the harm caused to these people is Electromed’s responsibility because, it says, the company “maintained the Private Information in a reckless and negligent manner. In particular, the Private Information was maintained on [Electromed’s] computer system and network in a condition vulnerable to cyberattacks.”

Electromed Theft of Information in Data Breach Class Action
Tags: Exposing Private Information, Exposure to cyber crime, Your Privacy