Health System Wins Summary Judgment in $500 Million Breach of Contract Claim
Lash & Goldberg LLP represented a national health care system against a vendor that had been contracted by certain of its hospitals to recover denied insurance claims. The health system terminated the contract after it learned that the vendor had violated HIPAA via the unauthorized release of protected health information from hospital records. The vendor sued for breach of contract in federal district court, claiming nationwide damages in excess of $500 million.
Shortly before trial and after extensive discovery and motions, the district court granted the health system’s motion for final summary judgment, dismissing all claims. As the prevailing party, the health system also obtained a judgment for reimbursement of its costs and attorney’s fees in the litigation.