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Netgain Technology Ransomware Attack Class Action

This class action brings suit against Netgain Technology, LLC and CareSouth Carolina, Inc. for what it calls “the massive and preventable ransomware attack” of December 3, 2020. Netgain offers cloud hosting and information technology services for customers in healthcare and accounting. CareSouth, a community health center, is one of its customers. A patient of CareSouth, whose information was exposed in the attack, is the plaintiff in this suit.

The class for this action is all persons living in the US whose personal and medical information was compromised as a result of the data breach of December 2020. A CareSouth Subclass has also been defined, for victims of the data breach who were patients of CareSouth.

The complaint alleges that patients of CareSouth were required to give the company personal and medical information, with the understanding that it would be protected and kept secure. In turn, CareSouth passed the information on to Netgain, which the complaint alleges was required to keep it safe. The complaint says, “By taking possession and control of” such information, the companies “assumed a duty to securely store and protect” the information.

The information compromised included names and addresses, Social Security numbers, insurance policy and identification numbers, clinical notes, referral requests, lab reports, subpoena records requests, employment-related documents, court documents, Drug Enforcement Agency certificates, payment withholding and insurance deduction authorizations, benefit and tax forms, and so on.

The complaint alleges, “It is apparent from the various notices and sample notices of the Data Breach … that the Personal and Medical Information contained within these servers was not encrypted.”

The complaint quotes the HIPAA Breach Notification Rule as requiring that notice of data breaches be given to each victim “without unreasonable delay and in no case later than 60 days following discovery of the breach.”

Yet the complaint claims, “Despite knowing that hundreds of thousands of patients across the nation were in danger as a result of the Data Breach, [the companies] did nothing to warn [the victims] until six (6) months after learning of the Data Breach—an unreasonable amount of time under any objective standard.”

The complaint also alleges that the companies “have done very little to protect” the victims since the breach. For one thing, they have offered them only twelve months of identity theft protection and credit monitoring protection.

In the notice about the data breach, Netgain said it paid a “significant amount” to the cybercriminals “in exchange for promises that the attacker will delete all copies of the data and that it will not publish, sell, or otherwise share the data.” But the complaint says that this does not do enough for the victims and does not protect them from the risk of fraud or identity theft.

Article Type: Lawsuit
Topic: Privacy

Most Recent Case Event

Netgain Technology Ransomware Attack Complaint

June 21, 2021

This class action brings suit against Netgain Technology, LLC and CareSouth Carolina, Inc. for what it calls “the massive and preventable ransomware attack” of December 3, 2020. Netgain offers cloud hosting and information technology services for customers in healthcare and accounting. CareSouth, a community health center, is one of its customers. A patient of CareSouth, whose information was exposed in the attack, is the plaintiff in this suit.

Netgain Technology Ransomware Attack Complaint

Case Event History

Netgain Technology Ransomware Attack Complaint

June 21, 2021

This class action brings suit against Netgain Technology, LLC and CareSouth Carolina, Inc. for what it calls “the massive and preventable ransomware attack” of December 3, 2020. Netgain offers cloud hosting and information technology services for customers in healthcare and accounting. CareSouth, a community health center, is one of its customers. A patient of CareSouth, whose information was exposed in the attack, is the plaintiff in this suit.

Netgain Technology Ransomware Attack Complaint
Tags: Exposing Private Information, Exposure to cyber crime, Your Privacy