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JUDGE DISMISSES PROPOSED CLASS ACTION LAWSUIT AGAINST PROVIDENCE
IN CONNECTION WITH THEFT OF COMPUTER DISKS AND TAPES


Nov. 8, 2007

PORTLAND, Ore. - A Multnomah County judge has dismissed a proposed class action lawsuit against Providence Health & Services - Oregon Region. The proposed lawsuit had been filed in connection with the theft of computer disks and tapes in December of 2005. Those disks and tapes contained the records of some 365,000 patients.

In her ruling, Judge Marilyn Litzenberger dismissed all claims seeking damages or equitable relief and ruled that Providence has taken the necessary corrective steps.

"We're pleased that the judge has dismissed this action," said Russ Danielson, chief executive, PH&S - Oregon Region. "Our top priority from the beginning was to support and protect our patients. In addition, we also implemented precautions to ensure the safety of records and alleviate any further concern."

In hearings before Judge Litzenberger, Providence told the court that it was already providing a higher level of relief than the plaintiffs might have received if the case had gone to trial.

There have been no reports of the stolen data being used for identity theft. In addition, the Oregon Department of Justice reviewed the incident and found that Providence took appropriate actions in responding to the theft. The DOJ chose not to fine or penalize Providence in the case. In the 2007 Oregon legislative session, Providence also was a strong supporter of bills that passed to protect consumers from identity theft.