Summary: New plaintiffs have joined a class action against Cognizant subsidiary TriZetto, seeking over $5 million in damages following a massive data breach. The breach, which allegedly went undetected for nearly a year, exposed the sensitive personal and health insurance data of millions of individuals, including Social Security numbers and health identifiers.
Business Impact: Severe financial and reputational risk for healthcare technology providers. The failure to detect a breach for a year indicates systemic weaknesses in security monitoring and response. This lawsuit sets a precedent for increased liability for “Third-Party Risk” in the healthcare supply chain.
Why It Happened: Unauthorized access through a web portal was left undetected due to insufficient industry-standard security practices and lack of robust anomaly detection within the provider’s network.
Recommended Executive Action: Conduct a comprehensive audit of all “detect and respond” capabilities. Mandate third-party security assessments for all subsidiaries and critical vendors to ensure alignment with modern data protection standards.
Hashtags: #DataBreach #HealthcareSecurity #ClassAction #Cognizant #TriZetto #HIPAA