Cognizant faces US class-action lawsuits over TriZetto data breach

Cognizant Technology Solutions is embroiled in multiple US class-action lawsuits stemming from a data breach at its healthcare claims processing unit, TriZetto. Petitioners allege the breach, potentially impacting over 100 individuals, went undetected—or undisclosed—for nearly a year. Complainants claim Cognizant was aware of the breach but failed to promptly inform affected parties, leading to potential financial harm and risks of identity theft.

The lawsuits accuse Cognizant of at least 18 counts, including unfairly retaining profits while inadequately securing patient data, despite being paid for such protection. Complainants seek monetary damages, attorney fees, and court orders for system audits and data deletion. Cognizant maintains that TriZetto takes data protection seriously but declined further comment due to ongoing litigation.

This legal challenge arrives amidst increasing cyber risks targeting healthcare claims processors like TriZetto. Similar data breach claims have been settled by other IT firms like Infosys. Experts predict a prolonged legal battle, potentially costing Cognizant tens of millions of dollars, though likely covered by insurance. The acquisition of TriZetto in 2014 significantly boosted Cognizant’s healthcare business, now its largest revenue segment.

(Source：Livemint)