Digital Health & Technology
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May 03, 2024
Ala. High Court Won't Rethink Decision On Frozen Embryos
The Alabama Supreme Court on Friday refused to revisit its February decision finding that frozen embryos count as children, a first-of-its-kind decision that has been received as potentially ruinous for in vitro fertilization services in the Yellowhammer State.
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May 02, 2024
Walgreens Fights $1B Arb. Award Over COVID Test Contract
At-home lab test maker Everly Health urged a Delaware federal judge to affirm its nearly $1 billion arbitration award against Walgreens over claims the pharmacy chain deliberately misused the digital health platform's trademark while secretly diverting COVID-19 tests to its own pharmacists while Walgreens argued the arbitrator overstepped his authority in bestowing such an "egregious" award.
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May 02, 2024
Masimo Hit With Derivative Suit Over Audio Co. Acquisition
The top brass at medical device company Masimo Corp. has been hit with a shareholder derivative action claiming they harmed the company and "confused" investors by pushing through a $1 billion acquisition of an audio equipment company, allegedly causing a steep drop in stock prices and a $5.1 billion market capitalization loss.
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May 02, 2024
Lawmaker Wants Antitrust Probe Of Health Insurance Data Co.
Sen. Amy Klobuchar, D-Minn., is calling for antitrust enforcers to investigate concerns that MultiPlan and other healthcare data companies are hurting competition by helping health insurers effectively collude when making pricing decisions.
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May 01, 2024
Sens. Slam UnitedHealth's Security Lapses, Breach Response
UnitedHealth's top executive faced heavy criticism during his first appearance before a U.S. Senate committee since a cyberattack rocked its Change Healthcare subsidiary, with lawmakers blasting the company for lacking basic security measures and for still not being able to confirm the scale and scope of the incident.
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April 30, 2024
What's Behind the Q1 Digital Health Funding Rebound
The digital health industry saw a resurgence in funding at the start of 2024, driven by a handful of mega-rounds and growing deal sizes across the board, but it also faced record-low deal counts as investors signaled pickier attitudes over which ventures they're choosing to fund.
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April 30, 2024
Patients Sue NC Plasma Donation Co. Over Data Breach
A plasma collection company has been hit in North Carolina federal court with at least two proposed class actions as of Monday claiming it failed to safeguard patient data, resulting in a breach in which names, Social Security numbers, addresses and treatment information were allegedly exposed by hackers.
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April 30, 2024
Tougher Privacy Rule Won't End Abortion Data Fight
Healthcare attorneys welcomed enhanced federal protections for patient abortion records. But the new rule likely won't release providers from the bind of complying with federal privacy law while potentially facing out-of-state probes into sensitive patient information.
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April 29, 2024
UnitedHealth's Cyberattack Response Is 'Inadequate,' AGs Say
Nearly two dozen state attorneys general urged UnitedHealth Group and its subsidiary Change Healthcare "to do more" to address the fallout from a February cyberattack by Russian ransomware group Blackcat that breached their systems and services, noting their response efforts to the outage "have been inadequate."
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April 29, 2024
Amid Backlash, FDA Extends Control For Lab-Developed Tests
The U.S. Food and Drug Administration inked a final rule Monday that gives the agency broad authority over lab-developed tests by classifying them as medical devices, a move that has drawn ire from congressional leadership and those in the healthcare and life sciences industries.
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April 29, 2024
AI Pharma Co. Sued By Investor Over Handling Of Fired CEO
Artificial intelligence-driven pharmaceutical company Exscientia PLC has been hit with a proposed class action alleging its former CEO engaged in inappropriate personal relationships with employees, and that the company's chairman knew but concealed it.
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April 29, 2024
Philips Inks $1.1B Deal To Resolve CPAP Injury Claims
The plaintiffs' attorneys leading a multidistrict litigation against Koninklijke Philips NV and some of its American subsidiaries announced Monday that they had reached a $1.1 billion settlement agreement for plaintiffs claiming that degraded foam in their breathing machines caused them personal injuries or will require long-term medical monitoring.
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April 26, 2024
Ill. Hospital Wins Dismissal Of Genetic Privacy Case
An Illinois state court judge has thrown out a proposed class action accusing Advocate Health and Hospitals Corp. of violating the state's decades-old genetic information privacy law, saying Wednesday the lead plaintiff not only released the hospital system from liability, but was largely asked about her own medical status after she was already offered a job.
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April 25, 2024
Stryker Says Sanctions Bid Goes 'Galaxies Beyond' Law
Medical device maker Stryker urged a Colorado federal judge to reject an ex-distributor's latest request for sanctions, arguing in a brief that the distributor's $2.2 million bid goes "galaxies beyond" what it asked for at trial and what the Tenth Circuit said the court could entertain.
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April 25, 2024
Judge Decries Discovery Delay In Chicago Genetic-Bias Fight
An Illinois federal judge has warned a proposed class of Chicago employees that further discovery delays in their suit alleging a city wellness program intentionally discriminated against them on the basis of their genetic information could result in the court barring witnesses' testimony from the case.
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April 25, 2024
Becton BIPA Suit Gets Cut Short Under Health Exception
An Illinois federal judge permanently tossed a Chicago health worker's biometric privacy claims targeting Becton Dickinson and Co.'s drug dispensing cabinets, saying his arguments for putting distance between his case and foreclosing precedent "border on the frivolous."
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April 25, 2024
Philips Gets $506M Economic Loss Deal OK'd In CPAP MDL
A Pennsylvania federal judge on Thursday gave final approval to a $506.3 million settlement to end economic loss claims in multidistrict litigation over Philips' recalled CPAP breathing machines, including $94.4 million for the plaintiffs' attorneys.
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April 25, 2024
Digital Health Co.'s Former GC Joins Perkins Coie In NY
Perkins Coie LLP is bolstering its intellectual property practice, announcing Thursday that it has brought on the former general counsel and chief compliance officer of digital healthcare company Cleerly.
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April 25, 2024
Wellstar Sent Meta Patient Data Without Consent, Suit Alleges
Wellstar Health System Inc. was hit with a proposed class action in Georgia federal court, with a patient alleging the confidential health information of "millions" was shared with Meta Platform Inc. without consent after Wellstar installed the company's tracking and collection tools on its website and patient portal.
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April 25, 2024
Hospital Operator Must Face Data Privacy Suit In Mass.
A Massachusetts federal judge has ordered a hospital operator to face proposed class action claims that it exposed a patient's personal information to third parties, saying the patient had a reasonable expectation of privacy.
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April 24, 2024
Conn. Healthcare Co. Will Pay $1.5M To End Data Breach Suit
Merritt Healthcare Advisors has pledged a $1.525 million settlement fund for more than 88,000 people whose personal information was exposed in a data breach in 2022, with class counsel at Laukaitis Law LLC and Cole & Van Note in line to receive $508,283, according to a motion for preliminary approval in Connecticut federal court.
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April 23, 2024
Privacy Bill Risks Adding To Growing Health Data Patchwork
Lawmakers behind a new data privacy framework have trumpeted the plan as a bold consumer protection regime with significant benefits for data not already covered by the Health Insurance Portability and Accountability Act. Some in the healthcare industry are less enthusiastic, saying the bill would make the privacy landscape more complicated.
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April 23, 2024
Colo. Neural Privacy Law Has Attys Scratching Their Heads
Colorado's governor signed the nation's first law specifically protecting neural data last week, but privacy attorneys say key caveats in the legislation leave them unsure how far the measure really goes.
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April 22, 2024
Ransomware Still On Rise Despite Better Defenses, Firm Says
Companies are becoming more adept at fending off and responding to a steady stream of ransomware attacks, but hackers' ability to continue to profit from these incidents and increased scrutiny by regulators and the plaintiffs' bar will keep pressure on companies to remain vigilant, according to a new BakerHostetler report.
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April 22, 2024
HHS Finalizes Rule Bolstering Abortion Privacy Protections
The U.S. Department of Health and Human Services on Monday issued a finalized version of its new rule that aims to protect the privacy of abortion providers and patients by prohibiting the disclosure of information related to "lawful reproductive health care," according to an announcement made by the agency.
Expert Analysis
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State Regulation Compliance Tips For Telehealth Employers
Nondisclosure, onboarding and reimbursement challenges are behind many remote work-related telehealth employment lawsuits, but with advance planning and knowledge of the state's requirements where practitioners are located, telehealth employers can avoid costly mistakes from the inception through the end of employment, say attorneys at Foley & Lardner.
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9 Legal Ethics Considerations In Natural Disaster Preparation
Since natural disasters like Hurricane Ian do not relieve lawyers of their ethical obligations to clients, law firms should focus their preparedness efforts on specific areas crucial to continuity of representation and ethics compliance, like business and communications contingency planning, record redundancy and more, says Mark Hinderks at Stinson.
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NY Data Breach Penalty Expands Regulatory Requirements
The New York Department of Financial Services’ recent consent order with EyeMed is an aggressive reading of state regulation that arguably expands current requirements, which could increase the complexity of the risk assessment process and may serve as a precedent for other privacy and data security regulators, says Rick Borden at Frankfurt Kurnit.
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Cybersecurity Expectations Intensify For Medical Device Cos.
A recent FBI industry notification and U.S. Food and Drug Administration draft guidance highlight urgent compliance considerations for medical device manufacturers, and contrasts with how federal regulators have previously treated health care players as victims in cybersecurity incidents, say attorneys at Morrison Foerster.
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Risk Mitigation In Face Of Rising Legal Malpractice Claims
As the recent rise in frequency and cost of legal malpractice claims is expected to continue amid global high inflation and economic uncertainty, law firms and insurers would be wise to evaluate key risk areas and consider six steps to minimize exposure, say Nicole Shapiro and Cory Stumpf at Atheria Law.
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Unpacking FDA's Final Clinical Decision Support Guidance
The U.S. Food and Drug Administration's latest guidance on clinical decision support software introduces new concepts, questions and ambiguities, and may be challenging to implement in practice, say attorneys at Covington.
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How Cos. Can Adapt To Global AI Regulation Trends
Companies can prepare for the future of artificial intelligence regulation by monitoring proposed and existing regulations both in the U.S. and abroad, tailoring their internal compliance architecture for AI-specific risks, and looking for opportunities to lead on governance issues, says Nicholas Diamond at Jackson Walker.
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4 Strategies For Drafting Effective Consumer Breach Notices
Businesses should consider key strategies when drafting consumer breach notification letters, such as knowing their audience and what is on their mind, and prioritizing user-friendliness and tone, say attorneys at Troutman Pepper.
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How Contractors Can Avoid Cybersecurity FCA Violations
Recent U.S. Department of Justice settlements and remarks underscore heightened focus on cybersecurity liability under the False Claims Act, so government contractors should consider compliance measures such as conducting periodic risk assessments, being responsive to employee concerns, and more, say attorneys at WilmerHale.
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EU Regulation Highlights AI Issues For Digital Health Cos.
As the regulation of artificial intelligence is high on the agenda for EU and U.K. policymakers and regulators, and likely imminent in the U.S., now is the time for providers in the digital health space to consider how compliance may need to change, and safeguard their position in the market, say Chris Eastham and Olivia Morgan at Fieldfisher.
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What DOJ Enforcement Shift Means For Life Sciences Cos.
Though monitoring life science company compliance has historically been the domain of the U.S. Department of Health and Human Services, recent trends suggest that the U.S. Department of Justice may be assuming a primary role going forward, raising interesting questions for the industry, say attorneys at Skadden.
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Ransomware Payment Lessons Amid DOJ Recovery Success
The U.S. Department of Justice’s recent successes clawing back ransom payments made to hacking groups provide companies an additional factor to consider when deciding whether to engage with law enforcement after experiencing a breach, whether to pay a ransom demand, and whether to try to recover the payment, says Tyler Bridegan at Wiley.
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What's Next For DOJ's COVID Enforcement In Health Care
As we enter the end of the third year of the pandemic, a few fraud-related trends and risks have emerged, necessitating important steps that health care and life sciences companies should take in light of continuing U.S. Department of Justice scrutiny, say attorneys at Arnold & Porter.