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Netgain’s inadequate cybersecurity led to hundreds of thousands of medical records being exposed in a major 2020 hack, a new nationwide class action lawsuit alleges.
Plaintiff Sherman Moore filed the class action lawsuit against Netgain Technology, LLC. Thursday in a Minnesota federal court, alleging negligence.
Moore says Netgain is a company that claims to provide “secure and scalable” information technology and cloud-computing services for businesses, including in the health care and accounting industries.
Due to specializing in healthcare and accounting, Netgain is responsible for managing and overseeing highly sensitive information which is often targeted by hackers who seek to exploit that data for nefarious purposes, Moore says.
It assures its clients that it is a cybersecurity professional capable of keeping its clients’ records safe. “In reality, Netgain’s self-depiction as a cybersecurity expert proved false,” Moore says.
“Contrary to its many representations and promises, Netgain utilized inadequate data security measures it knew, or should have known, put the highly sensitive data it oversaw at significant risk of theft by or exposure to nefarious parties.”
Moore says, from Sept. 2020 to Dec. 2020, hackers breached Netgain’s servers and stole copies of data. The breach allegedly impacted many of Netgain’s clients in the healthcare industry, with indications that hundreds of thousands of records were impacted.
Moore says he received a notice from one of his medical providers notifying him that his data had been stolen. Around the same time, he suffered from fraudulent transactions on one of his financial accounts and also noticed an increase in spam.
“Plaintiff remains at a continued risk of harm due to the exposure and potential misuse of his personal data by criminal hackers.”
Moore is looking to represent anyone who got notice that their data was potentially compromised due to Netgain’s data breach. He is seeking certification of the class action, damages, interest, fees, costs and a jury trial.
Meanwhile, in another data breach class action, consumers whose personal information may have been affected by a breach at alcohol delivery service Drizly may be eligible to claim a $14 payment without providing proof of purchase thanks to a $7.1 million settlement.
What do you think of the allegations in this data breach class action lawsuit? Let us know in the comments!
The plaintiff is represented by Brian C. Gudmundson, Michael J. Laird and Rachel K. Tack of Zimmerman Reed LLP.
The Netgain Data Breach Class Action Lawsuit is Sherman Moore et al., v. Netgain Technology, LLC., Case No. 0:21-cv-01421, in the U.S. District Court District of Minnesota.
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3 thoughts onNetgain Exposed ‘Highly Sensitive’ Medical Data to Hackers, Class Action Lawsuit Alleges
I was a victim via Perkins & Co. I received a letter telling me my information was stolen from Perkins, who was a Netgain customer.
Please add me
They comprised my data I want compensated