In an unpublished opinion issued on April 11, 2016, the Court of Appeals for the Fourth Circuit held in The Travelers Indemnity Co. of Am. v. Portal Healthcare Solutions, L.L.C. (http://www.ca4.uscourts.gov/Opinions/Unpublished/141944.U.pdf) that Travelers must defend a medical records company, Portal Healthcare, in a putative class action pending in New York state court alleging data breaches.
The underlying class action alleged that, between November 2012 and March 2013, Portal Healthcare negligently failed to secure a server containing confidential records for patients at a facility in New York. This, in turn, made the records available for anyone to view online without a password. When two patients searched for themselves on Google, they discovered that their medical records were publicly available. Travelers Indem. Co. of Am. v. Portal Healthcare Solutions, L.L.C., 35 F. Supp. 3d 765, 768 (E.D. Va. 2014).
Learn more about this ruling on our KnowingCorporateLitigation.com blog here.