{"id":34708,"date":"2020-04-30T14:45:46","date_gmt":"2020-04-30T14:45:46","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/31166\/Investors-Sue-LabCorp-Over-Security-Failures-In-Light-Of-Data-Breach.html"},"modified":"2020-04-30T14:45:46","modified_gmt":"2020-04-30T14:45:46","slug":"investors-sue-labcorp-over-security-failures-in-light-of-data-breach","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/investors-sue-labcorp-over-security-failures-in-light-of-data-breach\/","title":{"rendered":"Investors Sue LabCorp Over Security Failures In Light Of Data Breach"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/zdnet2.cbsistatic.com\/hub\/i\/r\/2020\/04\/30\/2734fc13-1d9a-41b1-aef6-3ca048f6cbfb\/thumbnail\/770x578\/555add83cd186cc728576e7e3284eeaf\/lab.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p>Investors have filed a lawsuit against LabCorp, claiming that the company&#8217;s board failed to address security problems that led to financial losses.&nbsp;<\/p>\n<p>As reported by <a href=\"https:\/\/news.bloomberglaw.com\/corporate-governance\/labcorp-board-sued-in-delaware-over-billing-vendor-data-breaches\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" data-component=\"externalLink\">Bloomberg Law<\/a>, LabCorp&#8217;s chief executive, chief information officer, and chief financial officer are specifically named in the Delaware court case, which accuses them of ignoring &#8220;persistently deficient cybersecurity measures&#8221; that led to a data breach and malware infection.&nbsp;<\/p>\n<p><strong>See also:&nbsp;<\/strong><a href=\"https:\/\/www.zdnet.com\/article\/medical-debt-collector-amca-files-for-bankruptcy-protection-after-data-breach\/\" target=\"_blank\" rel=\"noopener noreferrer\">Data breach forces medical debt collector AMCA to file for bankruptcy protection<\/a><\/p>\n<p>According to the lawsuit, failing to address these problems has impacted investors and resulted in financial losses due to share price changes, and therefore, damages are sought.&nbsp;<\/p>\n<p>A data breach occurring at the American Medical Collection Agency (AMCA) lasted for a period of eight months, between August 2018 and March 2019. The billing agency&#8217;s breach, in which a threat actor was able to compromise internal networks, led to the theft of information belonging to at least <a href=\"https:\/\/www.zdnet.com\/article\/amca-data-breach-has-now-gone-over-the-20-million-mark\/\" target=\"_blank\" rel=\"noopener noreferrer\">20 million<\/a> US citizens.&nbsp;<\/p>\n<p>Patient data from corporate clients including Quest Diagnostics, BioReference Laboratories, and LabCorp was compromised. AMCA was unable to handle the financial ramifications of the security incident and later <a href=\"https:\/\/www.zdnet.com\/article\/medical-debt-collector-amca-files-for-bankruptcy-protection-after-data-breach\/\" target=\"_blank\" rel=\"noopener noreferrer\">filed for bankruptcy<\/a>.&nbsp;<\/p>\n<p>Over 7 million patient records were stolen from LabCorp alone. However, this was not the only cybersecurity issue the company faced.&nbsp;<\/p>\n<section class=\"sharethrough-top\" data-component=\"medusaContentRecommendation\" data-medusa-content-recommendation-options=\"{&quot;promo&quot;:&quot;promo_zd_recommendation_sharethrough_top_in_article_desktop&quot;,&quot;spot&quot;:&quot;dfp-in-article&quot;}\">\n<\/section>\n<p><strong>CNET:&nbsp;<\/strong><a href=\"https:\/\/www.cnet.com\/news\/quibi-wish-jetblue-and-others-reportedly-leaked-users-email-addresses\/?ftag=CMG-01-10aaa1b\" target=\"_blank\" rel=\"noopener noreferrer\" data-component=\"externalLink\">Quibi, Wish, JetBlue, others leaked users&#8217; email addresses, researcher finds<\/a><\/p>\n<p>LabCorp was also subject to malware infection in late 2018, in which a threat actor was able to infect the company&#8217;s network with <a href=\"https:\/\/www.labcorp.com\/labcorp-it-security-information\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" data-component=\"externalLink\">SamSam ransomware<\/a>.&nbsp;<\/p>\n<p>LabCorp revealed that the ransomware was detected on diagnostic systems and on discovery, the impacted systems were taken offline while the infection was eradicated. A few days of disruption followed but it is not thought any client data was stolen.&nbsp;<\/p>\n<p><strong>TechRepublic:&nbsp;<\/strong><a href=\"https:\/\/www.techrepublic.com\/article\/messaging-apps-are-getting-more-use-and-its-putting-companies-at-risk\/?ftag=CMG-01-10aaa1b\" target=\"_blank\" rel=\"noopener noreferrer\" data-component=\"externalLink\">Messaging apps are getting more use, and it&#8217;s putting companies at risk<\/a><\/p>\n<p>The company has recently <a href=\"https:\/\/www.cnbc.com\/2020\/04\/29\/labcorp-lh-earnings-q1-2020.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" data-component=\"externalLink\">reported Q1 2020 losses<\/a> of $317.2 million and has withdrawn 2020 guidance. LabCorp says that the COVID-19 pandemic has devastated product demand and has already cost the company millions of dollars &#8212; forcing LabCorp to suspend a buyback program, furlough employees, and scale back expenses. &nbsp;<\/p>\n<p>In March, LabCorp was issued with a separate lawsuit in Delaware by <a href=\"https:\/\/news.bloomberglaw.com\/ip-law\/johns-hopkins-sues-labcorp-for-cancer-screen-patent-license-fees\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" data-component=\"externalLink\">John Hopkins<\/a> over cancer screening license fees.&nbsp;<\/p>\n<h3>Previous and related coverage<\/h3>\n<hr>\n<p><strong>Have a tip?<\/strong> Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0<\/p>\n<hr>\n<p>READ MORE <a href=\"https:\/\/packetstormsecurity.com\/news\/view\/31166\/Investors-Sue-LabCorp-Over-Security-Failures-In-Light-Of-Data-Breach.html\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":34709,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[60],"tags":[8616],"class_list":["post-34708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-packet-storm","tag-headlinehackerprivacyvirusdata-loss"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Investors Sue LabCorp Over Security Failures In Light Of Data Breach 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security &amp; Cyber Threats Analysis Hub. 100% Free OSINT Threat Intelligent and Cybersecurity News.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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