The UC Regents allege in a new lawsuit that an insurer is wrongfully denying payment for millions of dollars in losses incurred after cyber attackers obtained access to parts of UCLA Health's computer network in 2014.
The regents filed the lawsuit Friday in Los Angeles Superior Court against Certain Underwriters at Lloyd's, London, alleging breach of contract and seeking unspecified compensatory damages.
As part of its investigation, UC paid certain third parties to conduct forensic analyses of the UCLA Health network, in part to identify whether the incident had potentially exposed any personal identifying information, according to the suit, which also states that the regents hired a law firm to inform the regents regarding their notification obligations as well as another third party to provide those notices.
The patients said the regents failed to properly protect their personal data. The parties signed a settlement in February 2019 that required the regents to pay $2 million into a claims fund for class members affected by the incident and $5 million into a cybersecurity enhancement fund to address vulnerabilities that allegedly contributed to the breach, the suit states.
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