The legal landscape for Akumin has taken a significant turn as the company faces a proposed class-action lawsuit accusing it of failing to adequately protect sensitive patient information before a major cyberattack. Filed on December 27 in Florida by Gina Letizio and her attorneys, the lawsuit seeks over $5 million in damages. The incident traces back to October 2023, when a ransomware attack temporarily halted Akumin’s services, compromising personal details, including Social Security numbers. This breach has spotlighted the escalating concerns over unsecured patient data, exposing individuals to potential fraud and identity theft.
According to the complaint, Akumin’s cybersecurity measures were severely lacking, which facilitated the breach. The timing of the hack couldn’t have been more problematic, happening while the firm was already grappling with substantial debt, hurricane damage, and declining revenues. Less than two weeks after the breach, Akumin filed for Chapter 11 bankruptcy. Notably, CEO Krishna Kumar pointed out that the cyber event occurred under the prior management and before the lender Stonepeak took control of operations. Despite the turmoil, Akumin has been diligent in updating its stakeholders on the situation’s progress. The breach, detected on October 11, disrupted services until most were restored by November. However, seven imaging centers in Delaware and Florida faced extended shutdowns.
The lawsuit underscores how Akumin’s perceived failure to employ rigorous cybersecurity protocols has resulted in dire consequences, adding to the company’s financial woes and triggering the need for bankruptcy protection. The case casts a glaring light on the imperative nature of robust cybersecurity measures in healthcare, where the stakes of data breaches extend beyond financial loss to severe privacy risks. The aftermath of the cyberattack at Akumin has not only wreaked havoc on the company’s operational stability but also on the security and trust of its patients, signaling a crucial learning point for the entire industry.
