Class Action Alleges HMG Healthcare Failed to Protect Customer, Employee Data from Hackers

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A proposed class action claims negligence on the part of Texas-based HMG Healthcare is to blame for a cyberattack announced in December 2023 that compromised the private data of approximately 75,000 Texans.

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According to a notice posted on HMG’s website, the healthcare service provider discovered in November 2023 that unauthorized access to its server had compromised personal and health information belonging to residents and employees at HMG-affiliated nursing facilities.

The notice relays that hackers had gained access to the network in August 2023 and stolen certain stored files, which likely contained individuals’ medical records, names, dates of birth, contact information, general health data, medical treatment details, Social Security numbers and/or employment records. The online notice also includes a list of nursing facilities potentially impacted by the data breach.

The 27-page lawsuit claims HMG failed to take “even the most basic steps” to protect the highly sensitive data in its care, which was allegedly stored unencrypted and unredacted in its computer systems.

“The Data Breach was the inevitable result of HMG’s inadequate data security measures and cavalier approach to data security,” the suit contends, adding that its failure to properly monitor its network “[left] the door open” for cybercriminals to steal data for months without detection.

Victims like the plaintiff, a former HMG customer residing in Houston, now face a significantly increased risk of identity theft and fraud as a result of the defendant’s negligence, the case argues.

To make matters worse, HMG has apparently done little to remedy the damage it has caused, the complaint alleges.

“HMG failed to offer any meaningful assistance to consumers to help deal with the fraud that has and will continue to result from the Data Breach,” the filing says. “In contrast to what has been frequently made available to consumers in other data breaches, HMG has not offered or provided any fraud insurance or basic identity monitoring services.”

The lawsuit looks to represent anyone whose personal information was compromised in the HMG data breach that occurred in August 2023, including all individuals who received a notice of the incident around December 29, 2023.

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