Kroger reaches $5 million settlement with exploitation victims, Supreme Court decision

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Previously, Kroger got a $5 million court settlement with individuals affected by a breach which was started in February. The defrayal was the third legal action linked to the healthcare data breach this week, the importance of the rising trends of breach-related proceedings in the sector in the past few years. In this regard, Supreme Court’s June 21 decision in a case brought by Sergio Ramirez and 8185 individuals against TransUnion concluded that only individuals were materially affected.

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Here’s what Kroger stated?

As it stands, health care entities are regulated by the Department of Health and Human Services to comply with the Health Insurance Portability and Accountability Act rule. The regulation sets out the requirements for privacy and security programs, which the majority of service providers adhere to. A prime example of this can be seen in the Kroger incident. The drugstore and supermarket chain were among the hundreds of victims affected by a supply chain attack on file transfer app Accellion in December. Hackers exploited several zero-day vulnerabilities in conjunction with a new web shell, giving them access to at least 100 companies through its FTA service. The representatives were able to steal sets of relevant data during the incident, including customer and employee information from Kroger.

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While, about 1% of Kroger Health and Money customers, counting the pharmacy and health clinic patients, were pretentious. The data included health benefits information, Social Security numbers, prescription details and contact information, among other sensitive data.

However, Kroger immediately stops using Accellion’s services and reports the incident to law enforcement. But the 1.5 million customers affected by the accident soon began filing lawsuits against Kroger. In addition to at least 15 lawsuits directed at Accellion for its role in the accident. About 3.8 million individuals, including employees, were affected by the Kroger accident overall. Kroger’s lawsuit accused the pharmacy chain of failing to implement and maintain data security practices capable of protecting customer information and discovering security weaknesses underlying the breach, as well as inadequate security practices to obtain personally identifiable information. While the court has ordered the settlement between the two parties and more updates will be updated once the final verdict is given on it.

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