Judge drops class-action suit in Sutherland Healthcare Solutions stolen records case

A judge dismissed on Friday a putative class-action lawsuit that accused both Sutherland Healthcare Solutions, a medical billing company, and Los Angeles County of negligence after their medical records had been stolen, reports Law360.

The several-plaintiff lawsuit came as a result of a February burglary at Sutherland's Los Angeles office. The plaintiffs said that both groups violated California's Confidentiality of Medical Information Act.

The judge apparently disagreed, saying the plaintiffs should show no support of their charge that their medical files had actually been exposed.

As required by the HITECH Act of 2009, hospitals and healthcare organizations must report data breaches affecting more than 500 people to HHS in a database that is now known as the "Wall of Shame."

According to a company press release, the patient records of more than 342,000 patients were compromised when eight unencrypted desktop computers were stolen.

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