Travelers must defend business associate in data breach lawsuit

Kira Lerner reports:

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.

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Portal Healthcare Solutions was the contractor involved in the Glens Falls Hospital breach, reported previously on this blog in April of 2013. Within weeks, a potential class action lawsuit had been filed.

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