Conn. AG Says Health Net Bungled Disk Drive Loss

Law360, New York (January 15, 2010, 2:15 PM EST) -- Health Net of the Northeast Inc. lost a disk drive containing health, bank and Social Security records for 446,000 people, took no immediate action to notify customers, and delayed telling authorities, a suit filed by the Connecticut attorney general alleges.

The lawsuit, lodged Wednesday in the U.S. District Court for the District of Connecticut, accuses the insurer of multiple violations of the Health Insurance Portability and Accountability Act of 1996.

"Sadly, this lawsuit is historic — involving an unparalleled health care privacy breach and an unprecedented...
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