Nebraska Joins Legal Action vs Change Healthcare

The state of Nebraska became the latest plaintiff to sue Change Healthcare Inc. over a data breach, saying that it violated the state’s consumer protection and data privacy laws.

Last month, Nebraska Attorney General Michael Hilgers filed the lawsuit against Change Healthcare, UnitedHealth Group Inc., and Optum Inc. as defendants.

According to Hilgers, the breach affected hundreds of thousands of Nebraskans who not only dealt with their sensitive information being potentially shared publicly but also with the subsequent shutdown of Change Healthcare’s data systems.

“This data breach is historic. Not only because it compromised the most sensitive privacy and financial data of Nebraskans, but also because it shut down the payment and claim processing systems that form a significant part of the backbone of the medical payment processing industry,” Hilgers said in a statement.

“Healthcare providers, including critical access hospitals in rural areas, have unfairly been forced to absorb financial pain, forcing major cash flow issues and, in some cases, delayed services. And to make matters worse, Change has woefully disregarded the duty to provide notice to Nebraskans, depriving them of a fighting chance to be prepared for possible scams and fraud. We’re filing this suit to hold Change accountable,” he added.

Ransomware attack

In February last year, Change Healthcare announced that its data system was hit by ransomware by a Russian hacker group that stole the personal and medical information of nearly 100 million individuals. 

The leak compromised a wide range of sensitive data such as names, social security numbers, dates of birth, addresses, medical records, and insurance details, among others.

Following the breach, Change Healthcare attempted to buy back the data for approximately $22 million bitcoin. However, stolen information appeared to still be offered for sale on the dark web.

A growing number of class action lawsuits have since been filed throughout the federal court system, each raising similar questions of fact and law, and seeking damages for individuals who are now facing a risk of credit and identity fraud.

A report said that Change Healthcare representatives were ordered to appear before US District Court Judge Donovan W. Frank in the District of Minnesota on either December 16 or 17, or on January 16, 2025, to resume settlement talks and discuss payout terms.