VeriSource Beats Much of Data Breach Suit by Customers’ Workers

Employee-benefits administrator VeriSource Services Inc. convinced a federal court to dismiss much of a data breach complaint alleging it failed to protect the personal data of its customers’ workers.

The plaintiffs—employees of VeriSource’s customers—made breach of implied and third-party beneficiary contract claims, as well as a cause of action for negligence per se, that were dismissed with prejudice in the US District Court for the Southern District of Texas.

The employees and their dependents said the administrator failed to protect their private health information from a February 2024 data breach.

The incident that may have affected as many as four ...