CareSource class action claims company failed to prevent data breach

CareSource class action lawsuit overview:

• Who: Plaintiff Dwayne Cooper filed a class action lawsuit against CareSource.
• Why: CareSource allegedly failed to adequately screen its vendors and allowed private information to be stored unencrypted, leaving it vulnerable to a data breach.
• Where: The CareSource class action lawsuit was filed in Ohio federal court.
• How to find help: Consumers who received a data breach letter stating their information was compromised in a cybersecurity incident may qualify to participate in a free data breach class action lawsuit investigation.

CareSource failed to safeguard Personal Health Information (PHI) and Personally Identifying Information (PII) of more than 3 million consumers, according to a class action lawsuit filed Sept. 4 in Ohio federal court.

Plaintiff Dwayne Cooper of West Virginia says he received a letter dated Aug. 24 that notified him of the CareSource data breach and stated some of his PHI was included in the stolen data.

The CareSource class action lawsuit points to information on the health care coverage provider’s website that states that one of its vendors was hacked on May 31 and CareSource had patched the software by June 1.

The stolen data reportedly included consumers’ names, addresses, birthdates, Social Security numbers and sensitive medical information.

CareSource data breach could have been prevented by adequately screening vendors, lawsuit says

Cooper claims the CareSource data breach is a result of the company’s failure to adequately protect sensitive data and screen vendors. The hacked vendor allegedly stored private health data in unencrypted form despite the sensitivity of such information, according to the CareSource lawsuit.

As a result of the CareSource data breach, Cooper says he and other class members are at a “substantial and imminent” risk of identity theft, loss of confidentiality of his sensitive data and deprivation of value of his PII and PHI.

He says he spent significant amounts of time monitoring his accounts for signs of fraudulent activity and will continue to do so for the foreseeable future.

Cooper claims had he known CareSource would fail to take adequate measures to protect his PII and PHI, he would not have agreed to provide CareSource with his sensitive information.

The CareSource class action lawsuit notes criminals seek out PHI over other types of personal information because of the level of personal identifying characteristics it contains. The information can allegedly be used to commit a number of crimes, including identity theft, fraud and extortion.

The CareSource class action lawsuit asserts claims for negligence, negligence per se, breach of fiduciary duty, breach of contract, unjust enrichment and violation of the West Virginia Consumer Credit Protection Act.

Were you affected by the CareSource data breach? Tell us about your experience in the comments.

Cooper is represented by Terence R. Coates and Dylan J. Gould of Markovitz Stock & Demarco LLC, and by Jonathan Shub, Benjamin F. Johns and Samantha E. Holbrook of Shub & Johns LLC.

The Caresource data breach class action lawsuit is Dwayne Cooper v. CareSource, Case No. 3:23-cv-00256-MJN-PBS, in the U.S. District Court for the Southern District of Ohio, Dayton Division.

Read About More Class Action Lawsuits & Class Action Settlements:

• TD Ameritrade class action claims company failed to prevent data breach
• University of Minnesota class action claims institution waited to notify affected parties of data breach
• FTX, BlockFi, Genesis bankruptcy claimant data exposed in data breach
• Breached data of 2.6M Duolingo users available on hacking forum