Federal Court Denies Motion to Dismiss in Healthcare Data Breach Class Action
Lynch Carpenter continues to fight for the rights of consumers and patients whose most sensitive information has been compromised due to corporate negligence. Recently, Lynch Carpenter partner Jerry Wells, and his co-counsel, secured a victory in the United States District Court for the District of Maryland, successfully defeating a motion to dismiss in a consolidated data breach class action against Fundamental Administrative Services, LLC, Crimson Heights Health and Wellness, and Horizon Health & Rehabilitation Center.
Background of the Case
The lawsuit was filed on behalf of patients—including residents of Texas and Nevada—who sought short-term and long-term care, physical rehabilitation, and nursing services from Crimson Heights and Horizon. As a condition of receiving these healthcare services, patients were required to entrust the facilities with their Protected Health Information (PHI), who then provided it to Fundamental.
Plaintiffs alleged that the Defendants failed to implement adequate cybersecurity measures to protect this highly sensitive data, resulting in a severe data breach and the theft of the Plaintiffs’ PHI. The exposed information placed patients at an elevated risk of identity theft, fraud, and ongoing privacy violations.
The Court’s Ruling
In an attempt to avoid liability, the Defendants filed a motion to dismiss the consolidated class action complaint. However, arguing on behalf of the plaintiffs, Lynch Carpenter’s Jerry Wells successfully demonstrated that the patients had standing and also sufficiently alleged that the healthcare providers failed in their duty to protect the PHI entrusted to them.
The Court agreed with Plaintiffs’ arguments and largely denied the Defendants’ motion to dismiss. This crucial ruling validates the harm suffered by the victims and allows the class action to proceed to the next phases of litigation, bringing the affected patients one step closer to securing justice and accountability.
A copy of the Court’s decision can be found here.
Protecting Your Privacy
Healthcare providers have a fundamental legal and ethical obligation to safeguard the sensitive medical and personal information of their patients. When they fail to do so, they must be held accountable.
If you or a loved one received a notice that your Protected Health Information was compromised in a data breach, you have rights. Contact the data breach attorneys at Lynch Carpenter today to discuss your legal options.