Plaintiff Radiology Practice Alleges Major Health Corporations Negligence Led to Largest Data Breach

Radiology Associates of Ridgewood, a small New Jersey-based medical practice, is taking on some of the largest healthcare corporations in the United States in a legal battle that could have significant implications for patient data security and corporate accountability. On February 20, 2026, Radiology Associates of Ridgewood filed a complaint in the United States District Court for the District of New Jersey against Change Healthcare Technology Enabled Services, LLC, Change Healthcare Operations, LLC, UnitedHealth Group Incorporated, and Optum, Inc.

The lawsuit arises from what is described as the largest healthcare data breach in U.S. history. According to the complaint, Change Healthcare and its parent company UnitedHealth failed to implement basic cybersecurity measures such as multi-factor authentication (MFA), leading to a massive ransomware attack in February 2024. This breach allegedly compromised sensitive information of approximately 190 million individuals and severely disrupted Radiology Associates’ operations. The plaintiff claims that despite assurances from UnitedHealth’s CEO to Congress that repayment for temporary funding would not be demanded until businesses were “back to normal,” the defendants began aggressive collection efforts even as their services remained deficient.

Radiology Associates accuses the defendants of multiple breaches including breach of contract, fiduciary duty, negligence, and violations under the New Jersey Consumer Fraud Act. The plaintiff asserts that Change Healthcare’s failure to secure its systems directly led to catastrophic operational failures that devastated their business. As a result of these alleged breaches, Radiology Associates has suffered millions in losses due to unprocessed claims and additional costs incurred while trying to manage the fallout from the data breach.

The lawsuit seeks various forms of relief including damages for lost revenue and additional expenses incurred due to Change Healthcare’s failures. Furthermore, Radiology Associates is seeking treble damages under consumer fraud statutes and punitive damages for willful misconduct by the defendants. They also request declaratory judgment stating they do not owe repayment under current circumstances and an injunction preventing further collection actions by Optum or any other entity associated with UnitedHealth.

Representing Radiology Associates are attorneys Karen M. Lerner from Kirby McInerney LLP and Adam Farra along with Colin Gillespie from Farra & Wang PLLC. The case has been assigned Case ID 1:26-cv-01721.