Defense Dept. hit with $4.9B lawsuit over data breach

14.10.2011

TRICARE in September disclosed that sensitive data including Social Security Numbers, names, addresses, phone numbers and personal health data belonging to about 4.9 million active and retired U.S. military personnel may have been compromised after unencrypted backup tapes containing the data went missing.

The information on the tapes was from an electronic healthcare application used to capture patient data. The backup tapes were stolen from the car of an employee at Science Applications International Corp. (SAIC), a TRICARE contractor. The breach affects all those who received care at the military's San Antonio area military treatment facilities between 1992 and Sept. 7. 2011.

Lawsuits such as this one have become increasingly common in the immediate aftermath of a major data breach.

Earlier this month, for instance, Stanford Hospital and Clinics was for a data breach involving a third-party contractor. And major breaches such as the ones at Heartland Payment Systems, TJX and Hannaford Bros. have all prompted their share of consumer lawsuits charging the companies with negligence, breach of contract and other charges.

In many cases, courts however have tended to dismiss lawsuits in data breach cases. Several courts have held that consumers cannot claim compensatory or punitive damages in data breach cases unless they can demonstrate that they have suffered actual monetary damage as the result of a breach.