On October 20, 2023, the New York-based labor union UNITE HERE discovered unauthorized access to its systems, indicating a data breach that potentially compromised sensitive information of its members. A class action lawsuit has since been filed as a result of the breach.
What happened
The breached data included names, Social Security numbers, dates of birth, and medical information of thousands of individuals. UNITE HERE began notifying affected members on February 23, 2024.
There has subsequently been class action lawsuits filed, leading to a consolidated case, In Re UNITE HERE Data Security Incident Litigation, in the United States District Court for the Southern District of New York. On January 10, 2025, a $6 million settlement was preliminarily approved to resolve the lawsuit, offering compensation and credit monitoring services to the affected members.
The backstory
While the exact entry point of the cyberattack remains unclear, the breach was likely due to inadequate cybersecurity measures, which left the union's systems vulnerable to exploitation. Given the inability to determine the exact number of affected individuals, UNITE HERE took the precautionary measure of notifying all 791,273 potentially impacted members. The exposure of such extensive personal data led to a wave of class action lawsuits, with plaintiffs alleging negligence, breach of implied contract, unjust enrichment, and violations of consumer protection laws.
What was said
According to an article by ClassAction.Org, “The settlement agreement with the hospitality, food service and gaming labor union, which was preliminarily approved by the court on January 10, 2025, covers anyone in the United States whose private information was potentially compromised as a result of the data breach.”
Related: HIPAA Compliant Email: The Definitive Guide
FAQs
What is a class action lawsuit, and how does it affect healthcare organizations?
A class action lawsuit involves a group of individuals or entities with similar grievances against a common defendant. In healthcare, these lawsuits often involve allegations of anticompetitive practices, data breaches, or other systemic issues.
What are some recent examples of class action lawsuits impacting healthcare organizations?
Recent examples include the Blue Cross Blue Shield (BCBS) antitrust settlement and the Multiplan Health Insurance Provider Litigation. The BCBS case involves allegations of suppressing competition and reducing reimbursements for providers, while the Multiplan case alleges price-fixing by major insurers.
What role do regulatory bodies play in class action lawsuits involving healthcare organizations?
Regulatory bodies like the Department of Justice and state attorneys general may investigate allegations leading to class action lawsuits. Their involvement can influence the direction and outcome of these cases.
Kirsten Peremore
