The Jefferson County Health Department has reached two legal settlements – one involving an alleged data security breach and another involving a vehicle accident – and authorized a total payout of nearly $3 million.
The Board of Trustees on Aug. 27 unanimously approved both resolutions.
The first resolution approved the settlement of claims asserted by three people, identified in court records as J.D., F.M. and Candice Gurley, regarding a 2022 data breach and authorized the payout of $2,250,000, as well as attorney costs.
The second resolution approved the settlement with three victims of a 2022 vehicle crash, Dawn Broeker and her children, Hunter and Samantha Broeker. The department authorized its insurance company, Hartford Accident and Indemnity Co., to pay them $595,302.67.
Data breach
In January 2023, the Health Department mailed 115,940 letters to clients, alerting them of a data breach that was discovered on Nov. 15, 2022. The letter said suspicious activity was detected that included ransomware. The letter stated staff began a successful effort to restore its system and hired a forensic investigative firm to determine what information was compromised.
The firm concluded the department’s system had been accessed between Oct. 31-Nov. 12, 2022, and a limited number of files were accessed. The letter directed clients to sign up for a free year of credit monitoring through the Equifax consumer credit reporting agency and up to $1 million in identity theft insurance.
According to the resolution approved on Aug. 27, the department “denies all liability in the matter, but in the interest of avoiding the burden, expense and uncertainty of continuing this litigation, wishes to resolve (the court case).”
“There’s no evidence that anybody was actually damaged,” Christi Coleman, the department’s attorney, said Aug. 27.
Coleman said the settlement and all the costs, including mailing out the notices and identity protection services, were covered by the department’s insurance carrier and the only out-of-pocket cost to the department was the deductible. The deductible was listed as $25,000.
Vehicle accident
According to court documents, on May 19, 2022, a Health Department employee, Molly Fox, was operating a department vehicle at the traffic lights at Business 21 and Hwy. A in Hillsboro when she allegedly pulled into the path of a Jeep Wrangler operated by Hunter Broeker, causing injuries to people in Broeker’s’ vehicle.
According to the settlement, the department denies any liability but wishes to avoid trial. Coleman said the settlement is being paid by the insurance company, and the department is only responsible for the deductible.
In other business at the meeting:
■ Steve Sikes, executive director of the Health Department, told board members that there have been 139 cases of cyclosporiasis in July and August with new reports dropping off.
“So, there is light at the end of the tunnel,” he said.
Sikes said about 14 staff members outside of the communicable disease department have assisted with case investigations.
■ Sikes told the board that the former Hillsboro office has been shown two times to potential buyers with another showing scheduled. The building at 405 Main St. is listed for sale with Cort Dietz of ReMax for $795,000.
■ The board approved a fire/security alarm system upgrade at the Arnold facility by Burnes Citadel for up to $30,000.