Anthem, the largest health insurance company in the US, has agreed to settle a class action lawsuit over a 2015 data breach for a record $115 million, according to lawyers for the plaintiffs.
The settlement still has to be approved by US District Court Judge Lucy Koh, who is scheduled to hear the case on August 17 in San Jose, California. And Anthem, which didn’t immediately respond to a request for confirmation and comment, isn’t admitting any admitting any wrongdoing, according to a statement it made to CyberScoop acknowledging the settlement.
But if approved, it would be the largest data breach settlement in history, according to the plaintiffs’ lawyers, who announced the agreement Friday.
The funds would be used to provide victims of the data breach at least two years of credit monitoring and to reimburse customers for breach-related expenses. The settlement would also guarantee a certain level of funding for “information security to implement or maintain numerous specific changes to its data security systems, including encryption of certain information and archiving sensitive data with strict access controls,” the plaintiff attorneys said.
resulted in the exposure and theft of nearly 80 million records, including client names, dates of birth, physical and email addresses, medical IDs and Social Security numbers. Using a stolen password, hackers were able to break into a database that contained information of former and current customers.
Although a mammoth breach at the time, the Anthem hack doesn’t compare in scale to breaches Yahoo has since reported. One of them, which occurred in 2014 and was revealed in September, affected 500 million user accounts. Then three months later, the company disclosed an even bigger breach that happened in 2013 and affected a billion user accounts.
Yahoo is facing its own data breach-related lawsuits. But for now, Anthem’s appears the most costly to date for a U.S. company in terms of litigation payouts. In May, for example, Target agreed to pay $18.5 million to 47 states to settle claims stemming from a 2013 breach of credit card data. And Home Depot agreed to pay $19.5 million last year to settle a breach-related class action suit.
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