Court Allows Attorney General Hilgers’ Case Against Change Healthcare to Proceed, Citing Impact on Nearly 900,000 Nebraskans

LINCOLN - Attorney General Mike Hilgers announced that the Lancaster County District Court denied Change Healthcare’s Motion to Dismiss this week, allowing the State’s lawsuit against Change Healthcare, UnitedHealth Group, and Optum to move forward.

The Attorney General filed the lawsuit in December 2024 after a catastrophic breach of Change Healthcare’s systems caused statewide disruptions. The breach compromised highly sensitive medical, personal, and financial information and created significant operational challenges for hospitals, pharmacies, and healthcare providers across Nebraska.

In her order, Judge Strong rejected Defendants’ arguments and found that the State sufficiently alleged all violations of Nebraska’s consumer protection and data privacy laws. The Court also underscored the magnitude of the breach, noting that the cyberattack exposed the sensitive personal and medical information of nearly 900,000 Nebraskans.

“The Court’s decision ensures we can continue pursuing accountability and promoting stronger protections for Nebraskans’ health information,” Attorney General Hilgers said. “Nearly half of Nebraskans had their most sensitive information exposed because of this breach. Our office is grateful the court allowed this action to proceed so we can continue our fight to protect the privacy and rights of Nebraskans.”

The case moves into the next phase of litigation, where the State will continue working to hold the defendants accountable for their alleged security failures and delays in notifying Nebraskans of the breach. The Attorney General’s Office will continue pursuing all appropriate remedies under Nebraska law.