Betz v. St. Joseph's/Candler Health System, Inc., 4:21-cv-00260, No. 1 (S.D.Ga. Sep. 14, 2021)

Case 4:21-cv-00260-WTM-CLR Document 1 Filed 09/14/21 Page 1 of 36
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`Case 4:21-cv-00260-WTM-CLR Document1 Filed 09/14/21 Page
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`IN THE UNITED STATES DISTRICT COURT
`
`FOR THE SOUTHERN DISTRICT OF GEORGIA
`
`SAVANNAH DIVISION
`
`Plaintiffs,
`
`Vv.
`
`Case No.
`
`CLASS ACTION
`
`HEATHER ERICA BETZ,
`on behalf of herself
`andall others
`similarly situated,
`
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`ST.
`
`JOSEPH’S/
`HEALTH SYSTEM,INC.,
`
`CANDLER
`
`Defendant.
`
`JURY TRIAL DEMANDED
`
`
`
`CLASS ACTION COMPLAINT
`
`Plaintiff Heather Erica Betz
`
`(“Plaintiff”), individually
`
`and on behalf ofall
`
`others similar situated
`
`(collectively,
`
`the “Class,” “Class Members,”
`
`or
`
`“Plaintiffs”),
`
`and
`
`by
`
`through
`
`her attorneys, brings
`
`this Class Action
`
`Complaint against
`
`Defendant St.
`
`Joseph’s/Candler
`
`Health
`
`System,
`
`Inc.
`
`(“Defendant”
`
`or
`
`“SJ/C”),
`
`seeking damages,restitution, and
`
`injunctive
`
`relief for the Class, upon investigation
`
`of her counsel, personal knowledge,
`
`facts that are a matter of
`
`public record, and
`
`information andbelief as to all other matters.
`
`

`Case 4:21-cv-00260-WTM-CLR Document 1 Filed 09/14/21 Page 2 of 36
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`to take reasonable measures
`
`protect
`
`the SJ/C IT and data systems from
`
`unauthorized intrusion;
`
`(ii) failing
`
`to disclose to
`
`patients
`
`that SJ/C’s IT and data
`
`systems
`
`were vulnerable to intrusion before
`
`patients
`
`entrusted their PII and PHI
`
`to Defendant;
`(iii) failing
`
`to take reasonable and necessary steps
`
`to detect
`
`cyber
`
`criminals
`
`roaming freely
`
`in SJ/C’s system for six months; and
`
`(iv) failing
`
`to
`
`timely notify patients
`
`of the Data Breach.
`
`29.
`
` Asaresult of the Data Breach, Plaintiff and the Class suffered
`
`injury
`
`and ascertainable losses as described
`
`below.
`
`fully
`
`30.
`
`Plaintiff,
`
`on behalf of herself and all other Class Members, asserts
`
`claims for
`
`negligence; negligence per se; violation of the
`
`Georgia
`
`Fair Businesses
`
`Practices Act, O.C.G.A. § 10-1-319 et seq.; breach of contract; breach of
`
`fiduciary
`
`and
`
`duty;
`
`unjust
`
`enrichment.
`
`31.
`
`Plaintiff seeks remedies
`
`including,
`
`but not limited to, declaratory
`
`relief, monetary damages, statutory damages, punitive damages,
`
`and
`
`injunctive
`
`relief
`
`including,
`
`but not limited to, improvements
`
`to and
`
`auditing
`
`of Defendant's
`
`IT and data
`
`security systems,
`
`an
`
`equitable accounting
`
`of
`
`recipients
`
`of
`
`patients’
`
`data, and
`
`adequate
`
`credit
`
`monitoring
`
`services funded
`
`Defendant.
`
`by
`
`PARTIES
`
`Case 4:21-cv-00260-WTM-CLR Document 1 Filed 09/14/21 Page 10 of 36
`Case 4:21-cv-00260-WTM-CLR Document1 Filed 09/14/21 Page 10 of 36
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`32.
`
`Plaintiff Heather Erica Betz is, and at all times mentioned herein
`
`was, a residentof the State of South Carolina
`
`residing
`
`in the
`
`City
`
`of Bluffton and
`
`the
`
`County
`
`of Beaufort. Plaintiff was notified of Defendant’s Data Breach and her
`
`10
`
`

`Case 4:21-cv-00260-WTM-CLR Document 1 Filed 09/14/21 Page 11 of 36
`11 of 36
`Case 4:21-cv-00260-WTM-CLR Document1 Filed 09/14/21 Page
`
`PII/PHI being compromised upon receiving
`
`a notice letter dated
`
`August 10,
`
`2021.
`
`33. Defendant St.
`
`Joseph’s/Candler
`
`Health
`
`System,
`
`Inc.
`
`is a health
`
`system incorporated
`
`in
`
`Georgia
`
`and
`
`headquartered
`
`in Savannah, Georgia.
`
`Defendantis a domestic
`
`nonprofit corporation
`
`with its
`
`principal
`
`office located at
`
`5353
`
`Reynolds Street, Savannah, Chatham
`may
`
`be perfected upon Defendant
`
`by
`
`County, Georgia
`
`31405. Service of
`
`serving
`
`its registered agent Melissa
`
`process
`
`Alvarez at 5353
`
`Reynolds Street, Savannah, Chatham
`
`County, Georgia
`
`31405.
`
`JURISDICTION AND VENUE
`
`34.
`
`This Court has
`
`matter
`
`subject
`
`jurisdiction
`
`over this matter
`
`pursuant
`
`common
`
`involving
`
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`properly
`because Defendantresides in this District, and a substantial part of the unlawful
`
`to 28 U.S.C. § 1332(d)(2)
`of law or fact in which the aggregate
`
`questions
`
`because this is a class action
`
`amountin
`
`controversy exceeds
`
`$5,000,000, there are more than 100 members of the Class, and at least one
`
`member of the
`
`putative
`
`Class is a resident of a state different from that of the
`
`Defendant. This Court has
`
`supplemental jurisdiction
`
`over Plaintiff's and the
`
`Class’ state law claims pursuant
`
`to 28 U.S.C. § 1367.
`
`35.
`
`Venue
`
`lies in this District pursuant
`
`to 28 U.S.C. § 1391
`
`conduct
`
`giving
`
`rise to this
`
`Complaint
`
`occurred within the Southern District of
`
`Georgia.
`
`FACTUAL ALLEGATIONS
`
`11
`
`

`Case 4:21-cv-00260-WTM-CLR Document 1 Filed 09/14/21 Page 12 of 36
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`Case 4:21-cv-00260-WTM-CLR Document 1 Filed 09/14/21 Page 13 of 36
`Case 4:21-cv-00260-WTM-CLR Document1 Filed 09/14/21 Page 13 of 36
`
`phone number, date of birth, Social
`
`Security number, driver's license number,
`
`marital status, health
`
`history, family
`
`members’ health
`
`history, emergency contact
`
`information, marital status, employment information, financial information, and
`
`individual medical
`
`history.
`
`41.
`
`Additionally, SJ/C may receive
`
`private
`
`and
`
`personal
`
`information
`
`from other individuals and/or organizations
`
`such as
`
`family members, friends,
`
`referring physicians, patients’
`
`other doctors, patients’
`
`health
`
`plan(s), laboratories,
`
`and
`
`imagingcenters.
`
`42.
`
`SJ/C also
`
`keeps digital copies
`
`of
`
`patients’
`
`medical records, which
`
`patients may
`
`access
`
`through
`
`a web
`
`portal.
`
`43.
`
`Patients are
`
`provided
`
`with a
`
`treatment from SJ/C. The
`
`Privacy Policy
`
`useor disclose
`
`may
`
`when
`
`receive
`
`Privacy Policy
`they
`includesa list of instances in which SJ/C
`
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`patients’ PI[/PHI without written authorization, including:(i)
`for health care
`
`for treatment, (ii)
`
`for payment; (iii)
`
`operations; (iv)
`
`for customer
`
`services; (v)
`
`for
`
`appointments;(vi)
`
`for
`
`fundraising;(vii)
`
`to funeral directors or coroners;
`
`(viii)
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`
`(ix)
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`for
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`health concerns;
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`or tissue donation; (x)
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`
`government
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`
`(xiii)
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`
`44.
`
`The
`
`Privacy Policy
`
`claims.
`
`compensation
`further reads as follows: “[o]ther
`
`uses and
`
`disclosures will be made
`
`only
`
`with your written authorization[,] and you may
`
`13
`
`

`Case 4:21-cv-00260-WTM-CLR Document 1 Filed 09/14/21 Page 14 of 36
`14 of 36
`Case 4:21-cv-00260-WTM-CLR Document1 Filed 09/14/21 Page
`
`revoke the authorization except
`
`to the extent St.
`
`Joseph’s Hospital
`
`or Candler
`
`Hospital
`
`has taken action in reliance on such.”22
`
`45.
`
`The
`
`Privacy Policy
`
`further outlines the
`
`following “Rights
`
`to
`
`Privacy”:
`
`22
`
`St. Joseph’s Candler, Notice
`Sept. 10, 2021).
`3
`
`Id.
`
`a restriction on certain uses and
`to
`You have the
`request
`right
`listed
`disclosures of your information. However, the
`organizations
`aboveare not
`to agree to a
`requestedrestriction.
`required
`to obtain a
`You havethe
`paper copy of the Notice of
`Privacy
`right
`Official or a memberof the
`to the
`Practices upon request
`organization.
`and obtain a
`to
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`right
`record as allowed
`state and federal
`by
`regulations.
`an amendment to your health record as
`You may also request
`allowed bystate and federal
`regulations.
`You may
`also request communications of your health information
`alternative meansor at alternative locations. For
`example, by
`information to a P.O. Box instead of your home address.
`sending
`You may revoke your Authorization to use or disclose health
`to the extent that action has
`been taken
`information except
`already
`to the Health Information
`written notice
`by providing
`at St.
`Health
`Management Department
`Joseph's/Candler
`31405.
`Inc., 5353
`Reynolds Street, Savannah, Georgia
`You may
`receive an
`of disclosures made of your
`accounting
`also
`health information as
`federal
`provided by
`regulations by sending
`a written request
`to the Health Information
`Management
`at the addresslisted above.
`Department
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`Case 4:21-cv-00260-WTM-CLR Document 1 Filed 09/14/21 Page 15 of 36
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