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Patricia O'Connell
Senior Communications Manager

Kirk Nahra Comments on the Financial Impact of Cyberattacks on Health Care Providers 

September 13, 2016

Kirk J. Nahra, chair of Wiley Rein’s Privacy Practice and co-chair of the Health Care Practice, was quoted in a September 12 Politico article regarding the impact of cyberattacks on the financial wellbeing of health care organizations.  The article noted that although there have been at least 12 distinct ransomware attacks on American providers and hospital chains in the past year, the occurrences have done little to damage the stocks or reputation of health care providers.  Class-action lawsuits against these organizations have for the most part failed.

“If you have a meaningful breach, you are likely to get sued, and you are likely to win,” said Nahra. “Way more often than not, those cases get dismissed, sooner or later, unless there’s some specific indication something bad happened to somebody.”

This may change in the future though.  “You’re probably going to win this case that’s been brought against you for $100 million, but what’s your stomach [for risk]?” asked Nahra. “Is there going to be a tipping point case? … [I]f a significant court says, you know what, the fact that your data is out there is in itself an injury. As soon as you have a case like that, you’re going to see thousands of these cases.”

To read the full article, please click here.