Health Net Inc. (HNT) has settled a suit that was filed by Attorney General of Connecticut. The terms of the agreement entitle HNT to pay $250,000 to the state and employ stringent safety measures.
The suit was filed by the Attorney General of the State against the Company after it had lost a computer drive last year.
The details of the settlement were announced by the office of Richard Blumenthal on Tuesday. Blumenthal is a Democratic candidate who will succeed Senator Chris Dodd.
The settlement also includes credit monitoring for two years, compensation for the costs incurred in security freezes and $1 million for identity theft insurance.
The Company has disclosed that it does not have any verification of data misuse so far. It emphasized on the statement of the Attorney General and said that it had keenly collaborated with the Attorney General and the State to have strict security measures.
Health Net Inc. also revealed that it is very essential for them to ensure the privacy of the members.
Blumenthal stated that the stolen disk had the medical and financial data of about 500,000 enrollees of Connecticut. These enrollees were among the 1.5 million people whose private information were stolen on the disk
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