Data Breach Lawsuit Filed Over June 2023 SysInformation Healthcare Services Cyberattack

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SysInformation Healthcare Services, which does business as EqualizeRCM and 1st Credentialing, faces a proposed class action lawsuit over a June 2023 data breach.

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The 43-page SysInformation Healthcare Services data breach lawsuit contends that lax cybersecurity on the part of the Texas-based company, which provides revenue cycle and billing services to healthcare clients, caused the unauthorized disclosure of current and former patients’ names, dates of birth and medical histories or treatment information.

After SysInformation discovered unusual activity in its computer systems, a subsequent investigation determined that an unauthorized third party had gained access to the network between June 3 and June 18, 2023 and obtained certain files stored therein, the data breach lawsuit describes.

The case alleges that the company did not implement the proper data security necessary to protect the highly sensitive information of its clients’ patients, such as encrypting or deleting the data when it was no longer needed.

According to the complaint, the incident was wholly preventable and even “foreseeable” given the frequency of cyberattacks in the healthcare industry in recent years. The filing argues that, as such, SysInformation should have understood the risks of a data breach and taken commensurate measures to protect the information in its care.

Thanks to the company’s alleged negligence, victims like the plaintiff—a former patient of one of SysInformation’s clients—now face an ongoing threat of identity theft, fraud and other unlawful schemes, the suit emphasizes.

Moreover, the case claims that SysInformation’s notice letter was untimely and omitted critical details about the incident, without which victims’ ability to mitigate the consequences of the breach is severely hampered.

The lawsuit looks to represent anyone in the United States whose private information was accessed and/or acquired by an unauthorized third party as a result of the SysInformation data breach, including those who were sent notice of the incident.

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