Cognizant faces legal heat over data breach
Bengaluru, Jan. 2 -- Cognizant Technology Solutions Corp is facing multiple class action lawsuits in the US alleging that its healthcare claims processing unit, TriZetto, failed to make timely disclosures after a cyberattack that allegedly went undetected-or undisclosed-for nearly a year.
According to the petitioners, the breach impacted at least 100 individuals across several US states, who said they lost personal information held by TriZetto. At least one complainant alleged that the Nasdaq-listed company was aware of the breach but still did not inform affected parties, a claim that could raise concerns for investors.
"In or about November 2024, hackers gained access to Defendants' (Cognizant) computer network and accessed protected Private Information. Defendants claim to have first discovered the unauthorized access of its system on October 2, 2025, nearly a year after hackers had gained access," according to one class action complaint filed by Liam Lytle, Maricruz Jimenez, and Carson Noel on December 23.
The complainants said the total number of individuals affected by the breach remains unconfirmed and alleged that TriZetto failed to act promptly despite being aware of the incident.
Many of the lawsuits were filed in the last week of December by individuals in states including Arizona and California, who claimed they lost sensitive personal data such as financial account details, social security numbers, and addresses. Mint could not independently ascertain whether Cognizant intends to settle the claims.
The December 23 complaint alleged that Cognizant did not disclose critical details of the cyberattack.
"Defendants (Cognizant) have not disclosed details of the cyberattack to plaintiffs or class members, including the root cause of data breach, vulnerabilities exploited, and the remedial measures undertaken to ensure such a breach does not occur again. To date, these critical facts have not been explained or clarified to plaintiffs and class members, who retain a vested interest in ensuring their Private Information remains protected," read the class action complaint.
Cognizant also delayed informing its own clients that there was a data breach with many of the involved entities still allegedly in the dark, it said. "Defendants still have not informed all involved entities that their patients' Private Information has been compromised."
According to petitioners, the alleged "unreasonable delay" in disclosure aggravated the financial harm suffered by affected individuals, as it prevented them from taking timely steps to protect themselves from identity theft and related risks, leading to incrementally higher damages than would occur with earlier notification, they added.
The complainants raised concerns including the risk of losing healthcare coverage due to identity theft, potential increases in insurance premiums, and difficulties in resolving identity fraud.
Another complainant, Lisa Scorpio, alleged that her personal data may have been sold on illegal websites, raising the possibility of ransomware-linked activity.
Mint could not independently assess the financial impact of the alleged breach, though the complainants have claimed damages exceeding $5 million, excluding interest and legal costs. Mint has seen a copy of both the complaints....
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