Specialty Networks LLC: Specialty Networks’ $2.6 Million Data Breach Deal Gets Last Nod

Federal Court Finalizes $2.6 Million Settlement Over Specialty Networks LLC Data Breach

A federal court in the Eastern District of Tennessee has granted final approval to a $2.6 million settlement resolving a class-action lawsuit against Specialty Networks LLC, a healthcare industry service provider, following a 2023 data breach. The ruling, issued by Judge Curtis L. Collier on Thursday, closes the case after class counsel secured $866,666 in attorneys’ fees one-third of the total settlement.

Under the agreement, affected patients of Specialty Networks’ healthcare clients are eligible for reimbursement of up to $5,000 for documented losses or a smaller pro rata cash payment. The settlement also mandates that Specialty Networks enhance its cybersecurity measures to prevent future incidents.

The breach, which exposed sensitive patient data, prompted legal action from impacted individuals, culminating in the court-approved resolution. The case underscores the financial and operational consequences of cybersecurity failures in the healthcare sector.

Source: https://news.bloomberglaw.com/class-action/specialty-networks-2-6-million-data-breach-deal-gets-last-nod

Specialty Network LLC cybersecurity rating report: https://www.rankiteo.com/company/specialty-network-llc

"id": "SPE1772217209",
"linkid": "specialty-network-llc",
"type": "Breach",
"date": "1/2023",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"

{'affected_entities': [{'customers_affected': 'Patients of Specialty Networks’ '
                                              'healthcare clients',
                        'industry': 'Healthcare',
                        'name': 'Specialty Networks LLC',
                        'type': 'Healthcare Service Provider'}],
 'customer_advisories': 'Affected patients eligible for reimbursement of up to '
                        '$5,000 for documented losses or pro rata cash payment',
 'data_breach': {'personally_identifiable_information': 'Yes',
                 'sensitivity_of_data': 'High',
                 'type_of_data_compromised': 'Sensitive patient data'},
 'date_publicly_disclosed': '2023',
 'description': 'A federal court in the Eastern District of Tennessee granted '
                'final approval to a $2.6 million settlement resolving a '
                'class-action lawsuit against Specialty Networks LLC, a '
                'healthcare industry service provider, following a 2023 data '
                'breach that exposed sensitive patient data.',
 'impact': {'data_compromised': 'Sensitive patient data',
            'financial_loss': '$2,600,000',
            'legal_liabilities': 'Class-action lawsuit'},
 'investigation_status': 'Closed',
 'post_incident_analysis': {'corrective_actions': 'Enhanced cybersecurity '
                                                  'measures'},
 'references': [{'source': 'Federal Court Ruling (Eastern District of '
                           'Tennessee)'}],
 'regulatory_compliance': {'legal_actions': 'Class-action lawsuit'},
 'response': {'remediation_measures': 'Enhanced cybersecurity measures'},
 'title': 'Specialty Networks LLC Data Breach Settlement',
 'type': 'Data Breach'}