Data Breach Lawsuit Says siParadigm Failed to Protect Patient Info During Cyberattack

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A proposed class action lawsuit has been filed against siParadigm, LLC over a data breach that reportedly affected more than 26,000 individuals.

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According to the 56-page case, the company discovered unauthorized access to its computer network on June 11, 2024 and later determined that the incident had compromised files containing the names, Social Security numbers, dates of birth, addresses and medical information of its clients’ current and former patients.

The data breach lawsuit alleges siParadigm—which provides diagnostic and lab testing services to healthcare providers—maintained patients’ private information in a “reckless manner” that was vulnerable to cyberattacks. According to the complaint, the data was left unencrypted and available for unauthorized third parties to access and abuse.

“The data breach was a direct result of [siParadigm’s] failure to implement adequate and reasonable cyber-security procedures and protocols necessary to protect its clients’ patients’ private information,” the suit contends, claiming that the cyberattack could have been prevented had the company properly encrypted the data in its care.

Per the filing, the defendant waited until September 18, 2024 to notify affected patients of the breach. The plaintiff, an Arizona resident who received notice that her private information was exposed in the siParadigm data breach, alleges that she and other victims are now at a “heightened and imminent” risk of fraud and identity theft due to the company’s negligence.

“[The plaintiff] and class members now face years of constant surveillance of their financial and personal records, monitoring, and loss of rights,” the case says. “The class is incurring and will continue to incur such damages in addition to any fraudulent use of their private information.”

The complaint shares that the plaintiff has suffered fear, anxiety and stress now that her sensitive information is in the hands of data thieves. As the suit tells it, the woman’s emotional distress has been compounded by the fact that siParadigm has yet to inform affected individuals of key details about the incident. For instance, the case claims, siParadigm’s notice letter failed to mention the root cause of the breach, the vulnerabilities that were exploited and the remedial measures that have been undertaken to ensure such a breach does not happen again.

The siParadigm lawsuit looks to represent anyone in the United States whose private information was accessed and/or acquired by an unauthorized party as a result of the data breach reported by the defendant in September 2024.

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