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Designed Receivable Solutions, Inc. Data Breach

Posted on behalf of Arnold Law Firm in

NOTICE: If you received a NOTICE OF DATA BREACH letter from Designed Receivable Solutions, Inc., contact the Arnold Law Firm at (916) 777-7777 to discuss your legal options, or submit a confidential Case Evaluation form here.

Designed Receivable Solutions - reported data breachOn March 23, 2024, Designed Receivable Solutions, Inc. (“DRS”) reported a cybersecurity incident (“Data Breach”) to the HHS’ Office for Civil Rights, initially stating that the protected health information of 129,584 individuals was compromised. A subsequent filing with the Maine Attorney General on April 27, 2024 by DRS raised the number of total impacted individuals from 129,584 to approximately 498,686. Specifically, on January 22, 2024, DRS detected suspicious activity within its network. An investigation by third-party specialists later revealed on January 18, 2024, an unauthorized actor accessed and stole files from DSR’s system (the “Data Breach”). On March 8, 2024, DRS confirmed that the compromised files included protected health information and personally identifiable information of current and former patients of its healthcare clients, including but not limited to names, addresses, dates of birth, Social Security numbers, health insurance information, and medical information (including dates of service). As a result of the Data Breach, on April 26, 2024 DRS began sending out data breach notification letters to affected individuals. These notification letters provided a list of the compromised information and offered complimentary credit monitoring services. As the Data Breach was only recently announced, DRS has yet to release any additional details. If you received a Breach Letter from DSR, it means you were affected by the Data Breach. Headquartered in Cypress, California, DRS specializes in patient-centered and client-focused revenue cycle services. DRS works closely with healthcare providers to meet their unique needs throughout the accounts receivable (A/R) cycle. Employing more than 25 people and generating about $6 million in annual revenue, DRS is dedicated to improving patient communication, satisfaction, and financial performance.

WHAT INFORMATION IS INVOLVED?

The type of compromised information varied among individuals and potentially included:
  • Full Names
  • Addresses
  • Dates of Birth
  • Social Security Numbers (SSNs)
  • Health Insurance Information
  • Medical Information (including dates of service)
This information is referred to as your Personally Identifiable Information (“PII”) and Protected Health Information (“PHI”). It provides critical details about you and is an integral part of your identity. Businesses are legally required to protect PII, or they risk incurring statutory penalties and other legal repercussions. When PII is stolen, it can be used by identity thieves to commit fraudulent activities using your identity. Moreover, Protected Health Information (PHI), a specific category of PII, is safeguarded under both state and federal laws. Healthcare providers and businesses that manage PHI are mandated to secure this sensitive information. Similar to PII, stolen PHI can be exploited by identity thieves to commit fraud using your identity. Frequently, hackers use both PII and PHI together to enhance the effectiveness of their fraudulent activities. The best way to protect yourself after a data breach is to sign up for credit and identity protection services as soon as possible. California offers extra protections and legal rights to its residents through the California Consumer Privacy Act (“CCPA”).

NOTICE: If you received a NOTICE OF DATA BREACH letter from Designed Receivable Solutions, Inc., contact the Arnold Law Firm at (916) 777-7777 to discuss your legal options, or submit a confidential Case Evaluation form here.

Settlement - $3,767,000

Truck Accident

A 20-year-old man who had been married for just 12 days left home on his way to work. He was driving on Pleasant Grove Road in Sutter County in the early morning when he came upon a slow-moving truck. As he pulled out to pass the truck, the truck driver turned left in front of him. The young man attempted to steer back into his lane but his vehicle struck an un-flagged piece of metal extending from the back of the truck. He died in the resulting crash.

Expert witnesses brought in by the Arnold Law Firm proved that the truck, owned and operated by a hauling firm, should never have been on the highway that morning. Specifically, the rear and side turn signals did not work and the rear-view mirror was in a poor state of adjustment at the time of the collision. As a result, the driver, who had failed to properly inspect the vehicle before setting out that morning, couldn’t see the young man’s vehicle as it attempted to pass.

The poor condition of the truck, its lack of maintenance and the manner in which it was operated were found to be substantial factors in causing the collision that killed the young man. The testimony also established that the man had been making a lawful pass at the lawful speed limit and acted reasonably when he attempted to avoid the collision.

The man’s 20-year-old widow was awarded $3,767,000.77, his parents were awarded $185,131 and the family was reimbursed $11,899 in funeral expenses. Though money is a poor substitute for a young man’s life, this verdict demonstrates that drivers who endanger the lives of others will be held accountable for their actions.