Ninth Circuit revives lawsuit over AmeriBen disclosure of health data

A spreadsheet containing health insurance claims information was emailed to unauthorized recipients, prompting a proposed class-action lawsuit against AmeriBen.

Now, a federal appeals court has ruled that the case can move forward after a lower court dismissed it, finding that the alleged disclosure of sensitive health information was enough to establish standing to sue.

The 9th U.S. Circuit Court of Appeals reversed the dismissal in an Oct. 9 opinion, allowing Miles and Melissa Black to pursue their claims against IEC Group Inc., which does business as AmeriBen. The company is a third-party administrator (TPA) of employer health benefits.

The case centers on a December 2022 email from an AmeriBen associate that contained a spreadsheet with plan members’ health claims information.

The information that may have been disclosed included names, unique tracking numbers, health care provider names, claim numbers, dates of service and amounts billed or paid.

The Blacks, who receive health insurance through a plan administered by AmeriBen, said the company notified them in August 2023 that some of their information had been disclosed to unauthorized parties.

The couple filed the proposed class action, alleging that AmeriBen failed to safeguard their information and broke promises to keep it confidential.

Court finds alleged disclosure sufficient for standing

The district court dismissed the amended complaint in 2025, concluding that the plaintiffs had not demonstrated an injury sufficient to establish standing under Article III of the Constitution.

The Ninth Circuit disagreed, finding that the alleged disclosure of sensitive health information entrusted to AmeriBen for safekeeping resembled a breach of confidence or contract harms that courts have historically recognized as grounds for lawsuits.

The panel said the plaintiffs alleged that AmeriBen had promised to keep their information confidential, including through its privacy policy, and that the company failed to keep that information private.

“The harm that Plaintiffs allege from this disclosure resembles a breach of confidence and contract that courts have long understood as providing a basis for a lawsuit,” the opinion said.

The court noted that the information could reveal details about when people received medical treatment, which providers they visited and how much they or their insurers paid for care.

The panel also cited federal protections for health information under the Health Insurance Portability and Accountability Act, or HIPAA. However, the court noted that HIPAA does not provide a private cause of action.

The ruling addresses whether the plaintiffs alleged a sufficient injury to pursue their case in federal court. It does not determine whether AmeriBen is liable for the alleged disclosure or whether the plaintiffs will prevail on their claims.

The court reversed the district court’s judgment and remanded the case for further proceedings. The proposed class has not been certified.

Lawsuit alleges breach of confidentiality

The Blacks alleged that they provided their health information to AmeriBen as part of the administration of their insurance plan, relying on the company’s express and implied promises to keep the information confidential.

They also alleged that AmeriBen had not fully explained the scope of the disclosure or its cause.

The lawsuit seeks relief for the plaintiffs and others similarly situated. Its claims include negligence, negligence per se, breach of contract and implied contract, breach of fiduciary duty, unjust enrichment, declaratory and injunctive relief, and a claim under Florida’s Deceptive and Unfair Trade Practices Act.

The case was initially filed in the U.S. District Court for the District of Idaho in 2023. The district court dismissed the original complaint without prejudice in 2024 before dismissing the amended complaint with prejudice in 2025.

The Ninth Circuit’s decision sends the case back to the district court for further proceedings.

AmeriBen did not respond to a request for comment.

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Noah Lopez is editorial assistant for InsuranceNewsNet. Contact him at noah.lopez@innfeedback.com.