Lawsuit From Medical Data Breach

Karen Pardieck is suing Sutter Health for a data breach this October. She accuses the company of negligence and failing to notify patients of the breach. She is asking for $1,000 for each of the more than 4 million people affected.

The breach occurred when someone broke into administrative offices of Sutter Medical Foundation in Natomas and stole a computer. The computer was password protected but the data was not encrypted.

The question is if organizations are negligent if they do not encrypt all patient data? The precedent has been no up until now but that is being challenged.

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