Trinity Health in Michigan and Precision Imaging Centers in Florida have agreed to settle class action lawsuits that alleged negligence and violations of state laws in related to breaches of patients’ electronic protected health information.
Trinity Health Settles Litigation Stemming from Accellion FTA Data Breach
The Livonia, Michigan-based Catholic Health System, Trinity Health Corporation, and co-defendants Valley Surgical Specialists Medical Group, Inc., Daniel Evan Swartz, MD, and Rame Deme Iberdemaj, have agreed to settle class action litigation stemming from a 2021 data breach involving its secure file transfer platform, Accellion FTA.
On or around January 29, 2021, Accellion notified Trinity Health that hackers had gained access to the Accellion FTA by exploiting a zero-day vulnerability. Trinity Heath used the Accellion FTA for sending secure email, and determined that the files on the Accellion FTA had likely been downloaded by an unauthorized third party. The files contained names, addresses, email addresses, dates of birth, medical record numbers, lab results, medications, claims information, Social Security numbers, and credit card information. Notification letters were sent to 18,153 California residents, who were offered one year of complimentary credit monitoring, identity theft protection, and fraud resolution services.
A class action lawsuit – Jane Doe v. Trinity Health Corporation – was filed on May 20, 2021, in the Fresno County Superior Court over the data breach, seeking damages, restitution, and injunctive relief. The lawsuit alleged that Trinity Health had failed to adequately secure patient data by failing to encrypt the data on the Accellion FTA. The lawsuit asserted claims of violations of the California Confidentiality of Medical Information Act, California Security Notification Laws, and claimed the defendants had engaged in unlawful and unfair business acts and practices, in violation of Cal. Bus. & Prof. Code §§ 17200 et seq.
Trinity Health and the other defendants deny any wrongdoing; however, they chose to settle the lawsuit rather than incur additional costs continuing with the litigation and face the uncertainty of trial and any related appeals. Class counsel and the class representative believe the settlement is fair and is in the best interests of the class members.
Trinity Health has agreed to establish a $450,000 settlement fund to pay attorneys’ fees (maximum $150,000), attorneys’ expenses (maximum $25,000), service awards (maximum $5,000), and settlement administration costs. The remainder of the fund will be used to pay benefits to the class members. Class members may submit a claim for reimbursement of documented out-of-pocket expenses due to the data breach and can claim a one-off cash payment.
Claims for reimbursement of losses are capped at $1,000 per class member, and the cash payments are anticipated to be $231 if 5% of class members submit a claim, $115 if 10% of class members submit a claim, and $11 if all class members submit a claim. The deadline for filing a claim is January 19, 2026, and the final fairness hearing has been scheduled for April 29, 2026. Individuals wishing to object to or opt out of the settlement have until December 19, 2025, to do so.
Precision Imaging Centers to Pay Up to $200,000 to Settle Data Breach Litigation
Precision Imaging Centers, a Jacksonville, Florida-based provider of MRI, PET, CT, ultrasound, and X-ray imaging services, has agreed to settle class action litigation stemming from a cybersecurity incident that was identified on November 2, 2022. Hackers breached its network and gained access to files containing the personally identifiable information (PII) and protected health information (PHI) of current and former patients, including names, dates of birth, contact information, Social Security numbers, driver’s license numbers, diagnoses, and other medical and health information. Individual notification letters were mailed to the affected individuals on or around June 27, 2023, and the data was reported to the Maine Attorney General as affecting 31,010 individuals.
The first class action lawsuit in response to the data breach was filed by plaintiff Lauren Boyle, which was followed by complaints by four other individuals: Philipp Groebe, Natalie Luttrell, Bijoy Shroff, Cheryl Wearing, and Paige Demaio. The lawsuits asserted overlapping claims and were consolidated in a single complaint, In Re Precision Imaging Centers Data Breach Litigation, in the Circuit Court for the Fourth Judicial Circuit in and for Duval County, Florida.
The consolidated lawsuit asserted claims of negligence, breach of implied contract, breach of fiduciary duty, and violation of the Florida Deceptive and Unfair Trade Practices Act, all of which were denied by the defendant, who maintains there was no wrongdoing or liability. The plaintiffs believe all claims are legitimate and that the data breach could have and should have been prevented had reasonable and appropriate cybersecurity measures been implemented.
Precision Imaging Centers sought to have the complaint dismissed; however, the court denied the motion with prejudice, with the plaintiffs voluntarily dropping the Florida Deceptive and Unfair Trade Practices Act violation claim. On April 17, 2025, all parties attended mediation, and an agreement in principle was reached to settle the litigation with no admission of wrongdoing. The terms of the settlement have now been finalized and given preliminary approval by the court.
Under the terms of the settlement, Precision Imaging Centers has agreed to pay up to $200,000 to settle the litigation. Class members may submit a claim for reimbursement of documented out-of-pocket ordinary expenses and attested lost time (up to 4 hours at $20 per hour) up to a maximum of $500 per class member. Class members may also submit a claim for reimbursement of extraordinary losses, including up to 8 hours of lost time at $20 per hour, capped at $5,000 per class member.
Class members who submit a valid claim are also entitled to receive two years of credit monitoring services. The settlement has been capped at $200,000, and if that total is reached, claims will be paid pro rata. Precision Imaging Centers has also agreed to implement a range of cybersecurity measures to address the causes of the cyberattack, which will be maintained for at least three years. Further, any patient who has not received services from the company for five years or more will have their Social Security numbers purged from its systems or encrypted.
The final fairness hearing has been scheduled for January 8, 2026, and the deadline for submitting a claim is January 31, 2026. Individuals who wish to object to the settlement or exclude themselves have until January 1, 2026, to do so.
The post Trinity Health; Precision Imaging Centers Settle Class Action Data Breach Lawsuits appeared first on The HIPAA Journal.