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Preliminary Settlement Reached in Class Action

PRIVACY LAW—U.S.

August 1, 2011

WellPoint has reached a preliminary settlement in a class-action lawsuit involving the exposure of 600,000 health applicants' sensitive data, American Medical News reports. The suit, filed in March 2010, alleged that the company failed to protect the privacy of those affected, the report states. The settlement would see WellPoint provide two years of credit monitoring to those involved and would entitle class members to reimbursement for instances of identity theft. The settlement will be approved or declined after a November fairness hearing. In July, the company agreed to pay a $100,000 fine in a settlement with the Indiana attorney general's office for notification failures surrounding the incident. 
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