Allscripts Facing Class Action Lawsuit Following Ransomware Attack

Allscripts experienced a ransomware attack at centers in Raleigh and Charlotte, NC, resulting in several applications remaining offline for as many as 1,500 clients. Florida-based Surfside Non-Surgical Orthopedics. has already begun legal action by filing a class action lawsuit against the EHR vendor.

A new variety SamSam ransomware infected Allscripts, a provider of  EHR and e-prescription services to 2,500 hospitals and 19,000 post-acute care organizations, data server last week,

Incident response teams brought in from Microsoft and Cisco guided the company in restoring its e-prescribing service by Saturday; but, for many users of the server, the Allscripts PRO EHR system is still inaccessible or experiencing downtime. An Allscripts spokesperson could not confirm when a full restore will happen.

The class action lawsuit against Allscripts was filed in the United States District Court for the Northern District of Illinois where the business operates from. The legal action claims that Allscripts behaved negligently in failing to secure its systems against cyberattacks and that the organization was aware of dangers facing its online security. The complaint remarks that the organizationss most recent 10-K filing noted: “If our security is breached, we could be subject to liability, and our clients could be deterred from using our products and services”.

Legal counsel representing the plaintiff – Florida-based Surfside Non-Surgical Orthopedics – Allscripts foresaw the ransomware attack in the K-10 filing; and, as a result of the attack, their client sustained “significant business interruption and disruption, and lost revenues”. The class action lawsuit against Allscripts also argues that breach of contract, unjust enrichment, and violations of Illinois´ Uniform Deception Trade Practices Act and Consumer Fraud Act were clearly evident.

A member of the team that filed the class action lawsuit against Allscripts,Steven Tapper, is of the opinion that the ransomware attack could have affected many more clients than the company is stating. Speaking to reporters, he said: “We really don’t know. Allscripts hasn’t disclosed the full extent of the impact”. His co worker – John Yanchunis – went on to say that it could take as long as eighteen months to complete the legal action, but Allscripts may opt to trying to identify an quicker resolution. “I would hope that would be the case here,” he commented

Author: Maria Perez