Clears Way for Office to Continue Probe of Data Breach Impacting 462,000 Montanans
| FOR IMMEDIATE RELEASE Date: April 16, 2026 Contact: Tyler Newcombe Tyler.Newcombe@mt.gov |
| April 16, 2026 FOR IMMEDIATE RELEASE In a major courtroom victory for Montana consumers, the Montana First Judicial District Court cleared the way for State Auditor and Insurance Commissioner James Brown to continue his investigation of Illinois-based Health Care Service Corporation, which does business as Blue Cross Blue Shield of Montana (BCBSMT), for failing to promptly report a massive data breach. “My office is fully committed to protecting Montana consumers and ensuring transparency when their sensitive personal and health information is put at risk,” Auditor Brown said. “It’s troubling that Blue Cross filed a lawsuit against my office seeking a court order to stop us, as their regulator, from even investigating the data breach that impacted hundreds of thousands of Montanans and BCBSMT’s public notification of the breach. They failed in court and Montana consumers won as a result.” The Court denied BCBSMT’s motion for a preliminary injunction. In turn, it granted Auditor Brown’s motion to dismiss the company’s lawsuit, ensuring that his office maintains the authority to pursue accountability when Montanans’ personal and health information is compromised. Last fall, Auditor Brown launched an investigation into whether BCBSMT complied with Montana law requiring the timely reporting of cybersecurity incidents to both impacted customers and to the state. The company became aware of a massive breach of sensitive consumer data in January 2025 but failed to report it until October 2025. Approximately 462,000 Montanans may have been impacted by the breach. BCBSMT asserts that a third-party vendor, Conduent, was responsible for the incident. The court held that BCBSMT did not exhaust administrative remedies before initiating a judicial challenge to the agency’s investigative process. This order affirms that Brown – as Montana’s Insurance Commissioner – has strong authority to regulate insurance companies in defense of Montana consumers. While the court did not offer an opinion on any potential violations of the law, it affirmed that the Auditor’s Office must be given the first opportunity to investigate, review, and decide the matter. Administrative proceedings in the case remain pending. BCBSMT could face penalties and corrective actions if violations are found. Under Brown’s leadership, the Auditor’s Office has made consumer advocacy and protection a paramount priority. Companies, fraudsters, and scammers alike have been put on notice that they will be held accountable for failing to follow Montana law. For more information on the BCBSMT/Conduent data incident and the work of the Auditor’s Office, visit https://csimt.gov. ### 840 Helena Avenue, Helena, Montana 59601 (main fax) 406.444.3413 I (securities fax) 406.444.5558 (insurance consumer services fax) 406.444.1980 I (legal fax) 406.444.3499 (phone) 800.332.6148 or 406.444.2040 I (email) csi@mt.gov I (web) www.csimt.gov |
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