Change Healthcare files to have federal lawsuits dismissed
Change Healthcare has filed a motion with the U.S. District Court of Minnesota to dismiss a series of lawsuits stemming from the February 2024 ransomware attack on its systems. Those suing Change Healthcare include providers, individuals, and patient care organizations, all seeking damages caused by the disruption of claims processing due to the resulting network outage.
The lawsuits in front of the Minnesota-based federal court have been consolidated. Change Healthcare is requesting the court dismiss the case due to a lack of jurisdiction, as the company does not operate in the state.
Further, the claims processor said that the "vast majority" of the plaintiffs are not in Minnesota and fall under the purview of various other district courts.
"When personal jurisdiction over a defendant is lacking, a court has no power to adjudicate claims brought against that defendant, and the defendant must be dismissed from the litigation," the company wrote. "Personal jurisdiction can be general or specific. Here, the vast majority of plaintiffs do not—and cannot—demonstrate either as it relates to Change or its operations."
A subsidiary of Optum and UnitedHealth Group, Change Healthcare is located in Nashville, Tennessee, and incorporated in Delaware. The consolidated lawsuit in Minnesota is but one of many the company faces across the country, with filings in California, Florida, Texas, Arizona, Tennessee, New Jersey, and Nebraska.
According to coverage from About Lawsuits, approximately 65 claims have been filed against Change Healthcare throughout the federal court system. Some of the lawsuits are brought by individuals, others by hospitals, insurers and provider groups, while a select number of plaintiffs are state governments.
Change Healthcare has filed to dismiss most of the cases on various grounds; however, courts have yet to oblige. The district court in Minnesota has requested that all pending federal lawsuits be coordinated and consolidated as much as possible, and a timetable be established for potential settlements.
At last count, over 100 million Americans had their data leaked to hackers during the breach, setting a record for healthcare.
The next hearing before the Minnesota federal court is scheduled for June 12.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.