Change Healthcare cyberattack: 24 lawsuits filed so far, more likely

Lawsuits against Change Healthcare are piling up in the wake of a crippling cyberattack in late February.

Two dozen class-action lawsuits had been filed as of early April, according to a court filing. Thirteen were filed by consumers citing concerns about data theft, and 11 came from providers who said they struggled to receive payment while Change’s systems were offline. In a legal filing, plaintiffs said Change failed to protect the private health information of consumers and they could be at risk of identity theft. Plaintiffs also said they also expect “additional class actions will soon commence in other federal courts.”

Change, a business unit of UnitedHealth Group, asked a U.S. court panel to consolidate the lawsuits in Nashville, where the company is based. Most current cases have been filed in Tennessee, and the judge who likely would be assigned is “well equipped” to handle the case, it said in its filing. Lawsuits could proceed in at least seven districts across the country if the cases are not centralized

“Centralization of these actions in a single district is imperative to prevent duplicative discovery and inconsistent pretrial rulings, and to conserve the resources of the parties and the courts,” Change attorneys told the judicial panel.

The technology firm has pushed back against the suits, arguing the cases are based on an “incorrect and unfounded theory” that Change’s security wasn’t adequate and plaintiffs must have been harmed by the attack.

Sean Zabaneh, a partner with the Chicago law firm Duane Morris, said he expects “lots of lawsuits, lots of litigation and lots of complicated legal issues.” More providers are likely to sue for negligence, he said, and patients also could pursue litigation based on breaches of their private health information.

Additional providers also are likely to file suits because of the financial impact on their businesses, including delays in providing care, Zabaneh said. In its court filing, Change said providers pointed to the delay in receiving insurance payments.

Although lawsuits may provide some financial relief, providers shouldn’t expect a quick payday from litigation, said Jolene Calla, vice president of finance and legal affairs for the Hospital + Healthsystem Association of Pennsylvania. “If you’re looking for a lawsuit and a quick recovery, that’s really not in the cards,” she said. ”That’s not going to be the answer for people.”

Related: Change Healthcare hit with 6 lawsuits (so far), following cyberattack

The lawsuits could take years to work through the legal system because of the complexity of the issues, including questions surrounding whether Change maintained sufficient protections. ““Typically, these things take years,” Zabaneh said. “It depends on the provider and depends on the type of case. Litigation is never a fast answer.”