Adaptive Health Integrations Facing Class Action Over October 2021 Data Breach

New to ClassAction.org? Read our Newswire Disclaimer

Adaptive Health Integrations faces a proposed class action over an October 2021 data breach that reportedly exposed consumers’ personal information.

The 56-page lawsuit alleges defendant Medscan Laboratory, Inc., a billing and software services provider who does business as Adaptive Health Integrations, failed to adequately safeguard the sensitive data with which it was entrusted. Per the case, names, addresses, dates of birth, phone numbers and other sensitive patient data was among the information compromised in the October 2021 cyberattack on Adaptive Health’s systems.

The case alleges Adaptive Health’s failure to implement basic cybersecurity measures has exposed data breach victims to an increased risk of identity theft and fraud. According to the lawsuit, those affected by the incident will now need to spend significant time and resources monitoring their accounts for fraudulent activity for years to come.

“Defendant’s failure to adequately protect Plaintiff and Class members’ Private Information has resulted in Plaintiff and Class members having to undertake these tasks, which require extensive amounts of time, calls, and, for many of the credit and fraud protection services, payment of money–while Defendant sits by and does nothing to assist those affected by the incident,” the complaint scathes.

The lawsuit states that Adaptive Health first learned of “unauthorized activity” on its network in February 2022, after which the company, who provides services to medical labs, doctors’ officers and healthcare companies, launched an investigation and determined that “a limited amount of data” stored on its systems had been accessed on October 17, 2021.

The case contends that the breach was a direct result of the defendant’s failure to implement “basic, common-sense email security measures” that every business, not just those in the healthcare sector who have a “heightened standard of care,” should have in place. Had Adaptive Health properly trained its employees and adopted industry-standard cybersecurity measures, it could have prevented the exposure of consumers’ sensitive information, the lawsuit says.

The suit goes on to claim that despite learning of the breach in February 2022, Adaptive Health waited until April to send notice to those affected by the incident. According to the case, the defendant offered no explanation for its “belated” notice to victims, which the lawsuit says exposed the individuals to additional harm that they otherwise could have avoided had a timely disclosure been made.

According to the suit, Adaptive Health’s delay in notifying victims violated a North Dakota law that requires companies to provide “prompt and direct notice” of a data breach to affected consumers without “unreasonable delay.”

The plaintiff, a Bismarck, North Dakota resident, says he and other victims have been placed at an “imminent, immediate, and continuing increased risk of harm from identity theft and fraud” as a result of the Adaptive Health data breach.

The plaintiff argues that the defendant’s offer of 12 months of free identity monitoring to some data breach victims is “woefully inadequate” to compensate victims given there may be a delay between when an individual’s private information was acquired and when it is fraudulently used.

The lawsuit looks to represent anyone in the U.S. whose private information was compromised as a result of the October 2021 Adaptive Health Integrations data breach and was sent notice of the incident.

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s newsletter here.