UPMC Finally Settles Data Breach Lawsuit for $2.7 Million

Michael A. Cassidy, Esq., mcassidy@tuckerlaw.com, (412) 594-5515

UPMC’s employment records were hacked by criminals in 2014.  A civil class action lawsuit was filed on behalf of approximately 66,000 employees, and criminal cases were filed by federal prosecutors against a number of individuals and 4 have already pled guilty in connection with the hacking of the UPMC human resources data and using some of the information to commit federal income tax fraud.

In what has been referred to as a landmark opinion, the Pennsylvania Supreme Court declared that employers have a common law duty to use reasonable information security safeguards to protect employee’s personal information.

Under the proposed $2.7 million settlement, UPMC will establish a settlement fund for direct monetary relief to the settlement class members, pay up to $200,000 for administrative costs, $750,000 of Plaintiff’s attorney’s fees and implement significant cybersecurity improvements.

For more information on this, contact Mike Cassidy at mcassidy@tuckerlaw.com or visit our Med Law Blog at www.medlawblog.com for the most up-to-date information on health law.