Travelers Must Defend Health Co. From Med Records Suit

By Kira Lerner (August 8, 2014, 4:46 PM EDT) -- A Virginia federal judge ruled on Thursday that Travelers Indemnity Co. of America must defend Portal Healthcare Solutions LLC against class allegations that it posted confidential medical records online, finding that the Travelers policy covered electronic publication of private information.

U.S. District Judge Gerald Bruce Lee granted Portal's motion for summary judgment and ruled that Portal published, and therefore disclosed, confidential information, which falls under the terms of its policy with Travelers, according to the order.

"The court holds that the insurance policies do cover the conduct alleged because exposing confidential medical records to online searching is 'publication' giving 'unreasonable publicity' ...

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