UPMC Finally Settles Data Breach Lawsuit for $2.7 Million

Tucker Arensberg, P.C.
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Tucker Arensberg, P.C.

UPMC’s employment records were hacked by criminals in 2014.  A civil class action lawsuit was filed on behalf of approximately 66,000 employees, and criminal cases were filed by federal prosecutors against a number of individuals and 4 have already pled guilty in connection with the hacking of the UPMC human resources data and using some of the information to commit federal income tax fraud.

In what has been referred to as a landmark opinion, the Pennsylvania Supreme Court declared that employers have a common law duty to use reasonable information security safeguards to protect employee’s personal information.

Under the proposed $2.7 million settlement, UPMC will establish a settlement fund for direct monetary relief to the settlement class members, pay up to $200,000 for administrative costs, $750,000 of Plaintiff’s attorney’s fees and implement significant cybersecurity improvements.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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