Schneck Medical Center named in class action lawsuit related to data breach

By The Seymour Tribune

SEYMOUR — Schneck Medical Center faces a class action lawsuit related to a data breach that occurred Sept. 29, 2021.

That lawsuit was filed on behalf of Jalen Nierman and all others who may have been affected by the data breach, which he contends the Seymour hospital deliberately underplayed its severity and misrepresented there was no evidence cybercriminals had “misused” the stolen information even though Schneck knew the cybercriminals had infiltrated its systems for months without detection.

The lawsuit was filed on behalf of the Columbus man on Monday in Jackson Superior Court I in Brownstown by the Indianapolis law firm of Cohen and Malad LLP and the Madison, Wisconsin, law firm of Turke and Strauss LLP.

Schneck did not respond to a request for comment about the lawsuit.

The lawsuit further contends Schneck had lost control of at least 92,000 of its former and current patients’ highly sensitive personal and medical information to cybercriminals and then failed to adequately notify victims of the breach.

The stolen personal health information included at least patients’ names, contact information, addresses, dates of birth, financial account and/or credit card information, medical records and diagnoses, driver’s license numbers and Social Security numbers, according to the lawsuit.

The 16-page lawsuit also contends cybercriminals were able to breach Schneck’s systems because the hospital did not maintain reasonable security safeguards or protocols to protect its patients’ PHI, leaving it an unguarded target for theft and misuse.

It further contends Schneck’s failure to timely detect and notify breach victims violates Indiana law and has made its patients vulnerable to identity theft without any warnings to monitor their financial accounts or credit reports to prevent unauthorized use of their public health information. Because of the data breach, Schneck also failed to adhere to the Health Insurance Portability and Accountability Act of 1996 aka HIPPA, according to court documents.

For more on this story, see Friday’s Republic.