Online Pharmacy Capsule Hit with Class Action Over 2022 Data Breach

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Online pharmacy Capsule faces a proposed class action in the wake of a data breach in which the sensitive, confidential information of more than 27,000 customers was reportedly exposed to authorized access. 

The 52-page complaint says that the Capsule data breach, according to a notice sent to victims, occurred on April 5, 2022, when “unauthorized threat actors” gained access to certain accounts. The lawsuit alleges the incident was a direct result of Capsule’s failure to have in place adequate and reasonable cybersecurity procedures and protocols at a time when cyberattacks against medical systems and healthcare providers are seemingly rampant. 

“This is despite the fact that Capsule, an online pharmacy, represents on its online webpage, amongst other representations: ‘Your information is always secure with us. We store all of your personal data in an encrypted, HIPPA-compliant environment.’” 

The suit says that the information compromised in the Capsule data breach included patient names, email and physical addresses, phone numbers, birth dates, sex, medical conditions, prescribed medications, past order histories, payment card numbers, insurance information and the contents of text chats with Capsule representatives. 

According to the lawsuit, Capsule, despite “professing to take the privacy and security of its customers’ confidential and health information seriously,” has not offered in the wake of the incident any adequate credit monitoring services or compensation for the damages incurred by victims. 

Additionally, the case says, Capsule left “several key details” out of its data breach notice, including the method with which unauthorized actors gained access to its network, how long they had access to Capsule’s system, and the amounts of time it took the company to investigate and eliminate the data threat.

“As a consequence of the Data Breach,” the filing says, “Plaintiff’s and Class members’ Private Information has been released into the public domain and they have had to, and will continue to have to, spend time to protect themselves from fraud and identity theft.” 

Further, the suit charges that the mechanism of the hack was a known risk to Capsule, one that the company allegedly disregarded. 

“Simply, Defendant could have prevented this Data Breach,” the complaint argues. 

The lawsuit looks to cover all individuals and entities in the United States whose personal and health information was compromised in the data breach first announced by Capsule in May 2022. 

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