Premera Blue Cross Data Breach

Kim D. Stephens and Jason T. Dennett serve as co-lead counsel for the plaintiffs in multi-district litigation pending in the U.S. District Court for the District of Oregon against Premera Blue Cross. The lawsuit alleges that Premera allowed a massive breach of its data systems, permitting hackers access to the personal, medical, and financial information of approximately 11 million Premera subscribers and employees.

On July 29, 2019, the Honorable Michael H. Simon granted preliminary approval of the settlement agreement signed by the parties on May 30, 2019. Under the terms of the settlement, Premera has agreed to pay $74 million to resolve the litigation; $42 million to improve data security and $32 million to pay for an additional two years of premium credit monitoring and identity protection services, out-of-pocket losses, cash payments to all class members who make a claim, administrative and notice costs related to the settlement, and attorneys’ fees and costs. 

If Judge Simon finally approves the settlement, class members will be entitled to:

1) up to $10,000 per Class Member for reimbursement of out-of-pocket loses plausibly traceable to the Data Breach, including up to 20 hours of personal time at $20 per hour;

2) payment of approximately $50 for Class Members who do not have out-of-pocket loses;

3) payment of an additional $50 for Class Members who resided in California as of March 17, 2015; and

4) two years of credit monitoring and insurance services.

A website dedicated to the settlement will be active on or before August 29, 2019. Mail and email notices to Class Members will be sent on September 13, 2019 and conclude by November 13, 2019. All class members must submit claims by March 30, 2020. The hearing for final approval of the settlement is scheduled for March 2, 2020.

Settlement benefits will not be available until the settlement is finally approved by the Court, and any appeals are concluded.