Update On The Health Net Breach
Mugged By The Health Care System

Judge Dismisses Lawsuit About Express Scripts Breach

Last week, SC Magazine reported:

"A federal judge has dismissed a Missouri man's lawsuit against pharmacy benefit management firm Express Scripts, which suffered a data breach that exposed sensitive customer data. John Amburgy alleged that Express Scripts was negligent because it did not secure its database, leaving the system vulnerable to hackers who stole customer data, including names, Social Security numbers, birth dates and prescription information... Amburgy contended that he and other victims faced an increased risk of becoming the victims of identity theft. He sought damages for the time and money he spent protecting his identity after the breach. The case was dismissed last week by U.S. Magistrate Judge Frederick Buckles because Amburgy could not prove that his information was actually used fraudulently."

You may recall that Express Scripts received an extortion letter demanding money, or the thieves would expose the stolen personal information: either use it fraudulently or resell it to other identity criminals. More than 700,000 consumers were affected.

The judge's decision seemed very consumer-unfriendly to me. I guess that a consumer has to actually experience theft of their money or a financial account takeover (or drainage of funds) in order to prove negligence.


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