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US Health Insurer Premera Blue Cross Accused of Destroying Evidence in Data Breach Lawsuit (zdnet.com)

Catalin Cimpanu, reporting for ZDNet: The plaintiffs of a class-action lawsuit against health insurance provider Premera Blue Cross are accusing the organization of "willfully destroying" evidence that was crucial for establishing accurate details in a security breach incident. In court documents filed last week obtained by ZDNet, plaintiffs claim that Premera intentionally destroyed a computer that was in a key position to reveal more details about the breach, but also software logs from a security product that may have shown evidence of data exfiltration. Establishing if hackers stole data from Premera's systems is crucial for the legal case. Breach victims part of the class-action will be to claim a right for monetary compensation, while Premera may argue that since hackers did not steal data from its servers, there is no tangible harm to victims. The class-action lawsuit is in connection to a March 2015 announcement. Back then, Premera announced that hackers breached its systems and gained access to computers holding the personal and medical data of over 11 million Americans.

34 of 72 comments (clear)

  1. Of course by Anonymous Coward · · Score: 1

    Insurance companies are leaches on society. Are you really surprised they'd engage in such behavior?

    1. Re:Of course by harvey+the+nerd · · Score: 2

      Insurance companies are major uniparty sponsors unaccountable to the public, a major source of problems from the Medical-Industrial-Congressional complex that hurts and bankrupts many Americians.

  2. Re:Premera in Washington State by aisnota · · Score: 2

    1.) Ok, you can get call records from the phone company with SMDR details (difficulty high)
    2.) Hunt down ex-employees that know details of your employees getting shafted
    3.) Get class action status of Bad Faith insurance
    4.) Pierce corporate veil and put liens on CEO of the times personal property or trusts

    Hard to believe zero claim payouts, as even one or a handful of payouts would be enough for plausible deniability so these are imbeciles if corporate America !

    Cyber security lawsuit is more tenuous than bad faith of insureds paying in.

    --
    http://www.aisnota.com/slashdot/ Welcome to Logic and the Future
  3. Re:Premera in which state? by greenwow · · Score: 2

    Same here. Premera paid no claims for years so we finally switched to UnitedHealthcare. United is much better since they paid the claim of one of our three employees that gave birth. 1/3 sounds bad, but it's so much better than nothing.

  4. Destruction of evidence by AJWM · · Score: 2

    If it can be shown that evidence was deliberately destroyed (and yeah, that's the hard part), then there's generally a legal presumption that the evidence showed the worst possible interpretation of the case for the party which destroyed (else why destroy it?).

    Of course when the evidence that they destroyed evidence has also been destroyed, and the evidence of that has been destroyed... well, you get the idea.

    --
    -- Alastair
  5. Re:Premera in which state? by youngone · · Score: 2

    1/3 sounds bad, but it's so much better than nothing.

    That must be an awful way to live. You have my sympathy.

  6. Re:Premera in which state? by youngone · · Score: 2

    It's really is awful.
    My wife broke her ankle last year, and was seen immediately at the A&E by a series of well trained competent doctors and nurses.
    She was then admitted and stayed in hospital for the next three weeks and had an operation.
    When she did come home she had a home help person come to clean the house, and the district nurse checked on her for 6 weeks or so.
    But it get worse! So much worse!
    When she decided some (extra) physiotherapy was needed, I had to pay nearly $15 per session!
    I know !!

  7. I believe it by Jerry · · Score: 1

    For nearly ten years before I retired BCBS was the insurance vendor for where I worked.
    After I retired I switched to their supplement plan. Four years later, even though my wife and I had made few claims, which they were very slow paying, if at all, we got a notice saying that our "group" was being canceled. So we contracted with another supplement vendor. Three months later BCBS sent us an ad telling about a new policy, which was exactly like the policy they dropped, except that it cost about 50% more. We have received several ads from them since but all are immediately sent to file 13.

    --

    Running with Linux for over 20 years!

  8. Re:victims' not victims by WhiteDragon · · Score: 1

    Ok, I get it. The article says, "Breach victims part ...". I thought the word "victims" was a noun, and "part" was a verb, as in the victims were parting from something.

    The word [victims] here should be [victims'] (with an apostrophe after the word, meaning possessive). So [Breach victims] describes the noun "part". So the article means "the part of the lawsuit that belongs to the breach victims".

    It should be "... victims [who are] part of ...".

    --
    Did you mount a military-grade, variable-focus MASER on an unlicensed artificial intelligence?
  9. Timing is everything. by CaptainDork · · Score: 1

    Timeline:

    - 2014, the OPM warning
    - 2015, Premera announces breach
    - 2015, Lawsuits filed
    - 2016, One computer destroyed for end-of-life
    - 2018, Plaintiffs ask for all computers *** This motion makes all computers "evidence"
    - 2018, Premera gives all but destroyed

    I can destroy my desktop today. It can be crucial to a lawsuit tomorrow. Today it is not evidence. It isn't evidence tomorrow, either, because I destroyed it today.

    I am not compelled to preserve my desktop until served notice.

    Timing is everything.

    --
    It little behooves the best of us to comment on the rest of us.
    1. Re:Timing is everything. by Tyr07 · · Score: 3, Informative

      You wish it worked that way. You see, the computer wasn't destroyed until law suits were filld. E.G they had warning that computers might be requested, so they immediately destroyed it before it happened.

      I know, you think ahaha I was clever so I get away free. No, it doesn't work that way. If it can be linked that the computer destroyed would of had evidence relating to the breach and was destroyed post breach, especially after lawsuits were filled, it won't work.

      They'll still have to prove it, but that's like a criminal shooting someone, then destroying the gun before it's requested in court. You still get hit with destruction of evidence.

    2. Re:Timing is everything. by CaptainDork · · Score: 1

      You wish it worked that way. You see, the computer wasn't destroyed until law suits were filld [sic].

      Hold up right there.

      If I receive notice of a lawsuit today, does that mean I can't replace my refrigerator?

      The original lawsuit, like most at that stage, was vague in scope and did not include a motion to preserve the destroyed computer.

      At no time prior to a motion to turn over all computers in 2018 were the computers sequestered by the court.

      Had that been the case, we'd be reading about the criminal charges filed for destroying evidence.

      Timing is everything.

      --
      It little behooves the best of us to comment on the rest of us.
    3. Re:Timing is everything. by whoever57 · · Score: 2

      If I receive notice of a lawsuit today, does that mean I can't replace my refrigerator?

      If the refrigerator contains or is evidence relevant to the lawsuit, yes, it means exactly that.

      --
      The real "Libtards" are the Libertarians!
    4. Re:Timing is everything. by CaptainDork · · Score: 1

      You can have your opinions about what people should do, but your thoughts are not supported by case law.

      --
      It little behooves the best of us to comment on the rest of us.
    5. Re: Timing is everything. by CaptainDork · · Score: 1

      Didn't work out well.

      After I chopped them up, they did not respond to my efforts to manage them.

      --
      It little behooves the best of us to comment on the rest of us.
    6. Re: Timing is everything. by whoever57 · · Score: 1

      Timing is everything.

      Yes, but the time after which you can no longer destroy the drives starts earlier than you believe.

      --
      The real "Libtards" are the Libertarians!
    7. Re: Timing is everything. by CaptainDork · · Score: 1

      The legal system is not a matter of faith.

      "Evidence," has a definition that that describes often mundane things that become relevant only after a crime has been committed.

      It was not criminal to destroy the hard drive because it was not of any interest until 2018, after it had been destroyed for an unrelated reason.

      --
      It little behooves the best of us to comment on the rest of us.
    8. Re:Timing is everything. by Tyr07 · · Score: 1

      If a crime happened and your fridge was involved and a key piece of evidence, so you willingly destroyed it after a lawsuit was filed, it would show intent to destroy evidence. So no, you can't destroy your fridge.

      Your analogy is shit too. Let me use one to prove the point like you are with the same quality. Uh uh if a hand gun killed someone, does it mean a random person who has nothing to do with this at all in china can't use the toliet? It wasn't in the lawsuit originally filled.

      If a /key/ computer that would have evidence on it was deliberately destroyed, and was a key point or focus / entry point of the attack, it's a lot difference then daves old office PC in the basement, role, function, and relation to what happened all apply.

    9. Re:Timing is everything. by CaptainDork · · Score: 1

      If a crime happened and your fridge was involved ...

      Stop.

      You did a two-step:

      1.) A crime happened

      2.) Fridge

      That's not what happened:

      1.) A computer was destroyed

      2.) A motion for computer was filed

      That's why timing is everything.

      --
      It little behooves the best of us to comment on the rest of us.
    10. Re:Timing is everything. by CaptainDork · · Score: 1
      --
      It little behooves the best of us to comment on the rest of us.
    11. Re:Timing is everything. by Tyr07 · · Score: 1

      Stop.

      You know for a fact that this computer had nothing to do with crime and wasn't a center point of attention?
      You know it's role in the network security of the company?
      No? Yea troll, discussion is over.

      I'm confident you know as well as anyone if you are aware that any equipment was used in a crime and contains evidence, requested or not, you will be held for wilful destruction of evidence if it can be proved it was destroyed with that knowledge.

      It's like if you have 4 hand guns in your house. A person was killed by a hand gun, and you just happened to destroy one before it was requested you turn them all over for evidence.

      You'd still get nailed. People aren't as fucking dumb as you'd like them to believe, excluding even responding to you.

    12. Re:Timing is everything. by CaptainDork · · Score: 1

      Stop.

      The law is not based upon speculation prior to establishment of litigation.

      Any and all objects in the universe have the property that they could, individually or collectively, be evidence, and yet they are not all, at this point, evidence.

      In law, there's an order of operation:

      Evidence does not exist before probable cause.

      I have a magnifying glass on my desk.

      I could choke someone with it.

      If I should do that, it would become evidence.

      At this writing, I have not choked anyone with it, nor is there probable cause that I will, and the magnifying glass is not evidence.

      I can discard the magnifying glass if I like.

      From that point forward, if a crime is committed and the cause is attributed (possibly) to a magnifying glass, it is reasonable for someone to file a motion of discovery for my magnifying glass.

      If I cannot comply because I discarded the magnifying glass prior to the notification that it might be pertinent to a case, no one's going to worry about it.

      To repeat what I've already repeated:

      A computer was destroyed for reasons.

      A motion filed years later asking for the computer is moot.

      Had the computer been destroyed AFTER the motion ... but that's not the timing in this matter and that's everything.

      --
      It little behooves the best of us to comment on the rest of us.
  10. Can that really work? by ErichTheRed · · Score: 2

    I've worked at places that use an insanely short email retention policy to get out of e-discovery in lawsuits. One place had a 30-day retention..anything older than that and, "la la la, we have no record of the email you are attempting to recover." And apparently that works, if you have a written policy stating that you don't keep email or backups for more than X days.

    But, couldn't any company just send all their computers to the metal shredder the second a lawsuit is filed using the same argument? Maybe that's how they're planning on hiding how bad their data breach was. Somehow I doubt that though...if there were no rules against destroying evidence, every computer would have a self-destruct circuit in it.

    Of course no one knows what actually happened, but this totally reads like some clueless CIO getting pressure from the board and CEO to just make the problem disappear.

    1. Re:Can that really work? by sjames · · Score: 4, Informative

      The short retention works for anything that happens BEFORE the lawsuit is filed. The written policy is just a way to show that anything destroyed more than 30 days before the lawsuit was just business as usual, not an attempt to destroy evidence. Once the suit is filed, the destruction must be suspended.

    2. Re:Can that really work? by TubeSteak · · Score: 3, Interesting

      The spoliation inference is a negative evidentiary inference that a finder of fact can draw from a party's destruction of a document or thing that is relevant to an ongoing or reasonably foreseeable civil or criminal proceeding: the finder of fact can review all evidence uncovered in as strong a light as possible against the spoliator and in favor of the opposing party.

      E-mail/document retention policies are not a get out of jail free card.

      If the company can "reasonably foreseeable" the documents will be needed, they're obliged to preserved them, lawsuit or not.

      At the bare minimum, a judge will tell the jury to interpret destroyed evidence in the worst possible light for the destroyer.

      In a worst case scenario, depending on your jurisdiction, destroying evidence will spawn a separate civil lawsuit or a criminal prosecution (fines and jail time).

      Destroying evidence means you're stupid or hiding something much worse.

      --
      [Fuck Beta]
      o0t!
    3. Re:Can that really work? by shatteredsilicon · · Score: 1

      There are compliance regulations in many sectors, including finance (which includes insurance) and medical (which includes medical insurers) that say that everything has to be kept for a number of years. So on the whole in most of the civilised world, this sort of thing absolutely isn't going to fly.

  11. No one's being held accountable. by bjwest · · Score: 2

    Until the entire board of directors and everyone with a C*O in their title goes to prison for shit like this, nothing will change in the corporate world. Pissy little fines that barley make a blip on the bottom line will do nothing, and that's probably all that will happen AGAIN.

    --

    --- Keep the choice with the user..
  12. in prison the state pays the doctor with no claim by Joe_Dragon · · Score: 1

    in prison the state pays the doctor with no claim bs.

    Some doctors like it same pay + much less paper work.

  13. Of course they did by Revek · · Score: 1

    A corparation can only be trusted to do whatever is in its best interest. Even If there are no psychopaths in its top management. The committee will always choose to do what is best for the company no matter what the law is. Its one of the reasons we need more regulation in this country. Several generations of US citizens have now been convinced that government regulation is bad. They have been convinced of this to preserve the bottom line of companies whose management closely resembles the communist party of Russia. Look at how they elect their leaders and who decides who is on the boards. Doesn't look like democracy in any way.

  14. Re: Premera in which state? by b0s0z0ku · · Score: 1

    Meanwhile, I hope that all private insurance companies get caught with their pants down, and ideally ruined. If enough of them hang, maybe support for a public option or Medicare-for-all will increase. Kick 'em to the curb.

  15. Re:HIPAA by b0s0z0ku · · Score: 1

    Fine them something they can't pay, say the max of $50,000 per case. Then nationalize them, or put them under state control after the fines bankrupt them. Make them a test case for a public option.

  16. Re: Premera in which state? by originalGMC · · Score: 1
    Eh, I've worked for them as a very high level contractor before - they SAY they're not for profit, but the way they ACT is much different. The blues all have extraordinary salaries for their higher ups. Per https://khn.org/news/blue-shie... in ...

    2015 compensation included a base salary of $1.07 million and incentive plan payouts of $2.45 million.

    A better news story would be to illuminate what the "incentive plan" is... or maybe to expose just how much $ they spend on lobbying.

  17. Re: Premera in which state? by sodul · · Score: 1

    Thatâ(TM)s why Iâ(TM)m sticking with Kaiser Permanente. Yes I have heard bad stuff about them but bad surgeries do not seem to happen more frequently than at other places. The thing that never happens with them is a giant magical bill out of nowhere. When our son was born he was premature and in breach position. We had to do an unplanned c-section and we stayed 4 days in the hospital after the surgery. The total bill was $750, in the middle of Silicon Valley. We then had daily follow ups on how to feed a premature baby, free, including the seringues and tubing. Sometimes, rarely, they charge us more than we are supposed to for a visit and then they mail us a check without even us asking or mentioned ning anything. So Iâ(TM)m actually less worried about medical malpractice there, since the doctors have no incentives to do useless exams or surgery, they are less stressed because they donâ(TM)t have to deal with external insurance paperwork, and I never have to worry about a magical high bill in the mail.

  18. Re:Premera in which state? by terrycarlino · · Score: 1

    For anyone who believes the U.S. government is capable of doing healthcare I just recommend they look at the VA. The VA is what everyone's healthcare would look like if there was one payer in the U.S.