Incident Details
The federal court did not approve the proposed $6.49 million settlement of a lawsuit against CorrectCare Integrated Health LLC for failing to safeguard the personal data of 647,000 individuals during a data breach in January 2022. Judge Danny C. Reeves from the US District Court for the Eastern District of Kentucky rejected the settlement because the plaintiffs, Virginia Hiley, Christopher Knight, Kyle Marks, and Marlena Yates, did not demonstrate in their request for approval that the relief offered in the agreement was sufficient. Additionally, Judge Reeves mentioned that the deal was not shown to be fair to class members who did not have documented losses from identity theft.
Incident
How Did the Breach Happen?
A total of 647,000 individuals had their personal information compromised as a result of CorrectCare Integrated Health LLC's inability to safeguard it.
What Data has been Compromised?
The breach led to the exposure of the personal details of 647,000 individuals.
Why Did the company's Security Measures Fail?
The security protocols implemented by the company were insufficient in safeguarding the personal data of individuals, resulting in a security breach.
What Immediate Impact Did the Breach Have on the company?
A federal court declined the proposed settlement of $6.49 million right after the breach, citing concerns about fair treatment.
How could this have been prevented?
Implementing enhanced security protocols could have averted this breach by safeguarding the personal data of individuals.
What have we learned from this data breach?
This incident has demonstrated the need to prioritize safeguarding personal data effectively in order to avoid breaches and potential legal repercussions.
Summary of Coverage
CorrectCare Integrated Health LLC experienced a data breach in January 2022 that resulted in the exposure of the personal details of 647,000 people. A federal court declined the suggested $6.49 million settlement for the breach due to worries about fair treatment.