Omni Family Health, a network of 39 community health centers in Kern, Kings, Tulare, and Fresno counties in California, experienced a cyberattack in 2024. A $6.5 million settlement has recently been agreed to resolve the resultant class action litigation.

Omni Family Health experienced a cyberattack in February 2024 that caused a 5-day outage of its IT systems. The cyberattack was investigated at the time; however, no evidence was found to indicate that any patient data had been compromised in the incident. On August 7, 2024, Omni Family Health was made aware that a threat actor (Hunters International) had claimed to have compromised its network and had posted data allegedly stolen in the attack on the dark web.

Omni Family Health investigated and concluded that the data was real and issued notifications to the 468,344 affected individuals, who included current and former patients and employees. Data potentially stolen in the attack included names, addresses, Social Security numbers, dates of birth, health insurance information, and medical information. The affected individuals were notified about the data breach on October 10, 2024.

The first three class action lawsuits were filed in the Eastern District of California on October 20, 2024, and subsequently, 19 separate actions were filed in the Superior Court of the State of California, Kern County. All 21 actions were consolidated into a single action first in the Eastern District of California, and were then remanded to the Superior Court on January 14, 2025, with the case Pace v. Omni Family Health designated as the lead case.

Omni Family Health denies all liability and wrongdoing and disagrees with all claims and contentions in the lawsuit. Despite believing that it had good defenses to all of the claims, Omni Family Health moved to settle the litigation to avoid the time, expense, risk, exposure, inconvenience, and uncertainty of a trial and related appeals. Class counsel evaluated the costs, risks, and uncertainty of continuing with the litigation, and based on an analysis of comparable settlements, determined that the settlement was in the best interests of all class members. The settlement has recently been granted preliminary approval by the court, and the final fairness hearing has been scheduled for February 26, 2026.

Omni Family Health has agreed to establish a $6,500,000 settlement fund, from which attorneys’ fees and expenses (approximately $2.2 million), class representative awards ($1,500 per named plaintiff, totaling $30,000), and settlement notification and administration costs will be deducted. The remainder of the settlement will be used to pay benefits to the class members.

Class members may submit a claim for reimbursement of documented, unreimbursed losses due to the data breach up to a maximum of $5,000 per class member. A claim may also be submitted for a pro rata cash payment, which has been calculated to be $105.56 per class member based on a 4% claim rate. All class members are also entitled to claim two years of single-bureau credit monitoring and identity theft protection services, and members of the California resident subclass may claim an additional pro rata cash payment of $100. The cash payments may be adjusted based on the number of valid claims received, and will be calculated after credit monitoring costs have been deducted from the settlement fund.

Omni Family Health has also agreed to implement changes to its business practices and make several security enhancements to prevent similar incidents in the future. The cost of those security enhancements will not be paid from the settlement fund. Individuals wishing to object to the settlement or exclude themselves have until December 5, 2025, to do so, and claims must be submitted by January 5, 2026.

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The Iowa-based healthcare company, CarePro Health Services, has agreed to pay $1.3 million to settle class action litigation stemming from a November 2023 cyberattack and data breach affecting up to 151,499 individuals.

The cyberattack that triggered the lawsuit was first identified by CarePro on November 16, 2023. Unauthorized individuals remotely accessed a system where unencrypted patient data was stored. Files containing patients’ protected health information were exfiltrated from the network before the intrusion was detected and blocked. Data compromised in the incident included names, contact information, dates of birth, Social Security numbers, driver’s license numbers/state ID numbers, financial account information, and medical/health information. The affected individuals were offered complimentary credit monitoring and identity theft protection services.

A lawsuit was filed shortly after notifications were mailed to the affected individuals by CarePro patient Brandi Bell, individually and on behalf of similarly situated individuals. The lawsuit was soon followed by another complaint filed by Brandie Keegan, individually and on behalf of her minor child, and similarly situated individuals. The lawsuits were consolidated into a single complaint, Bell et al. v. C.R. Pharmacy Services, Inc. d/b/a CarePro Health Services – in the Iowa District Court for Linn County.

The lawsuit claimed that the plaintiffs suffered concrete injuries as a direct result of the data breach, including invasion of privacy, lost or diminished value of private information, lost time and opportunity costs, and loss of benefit of the bargain. The plaintiffs’ and class members’ personal and protected health information remain in the hands of cybercriminals, placing them at an increased risk of identity theft and fraud for years to come.

The plaintiffs claim that the data breach could have and should have been prevented, as the defendant failed to implement adequate and reasonable cybersecurity measures to protect patient data, recklessly maintaining patient information. The lawsuit asserted claims of negligence, negligence per se, breach of implied contract, invasion of privacy, breach of fiduciary duty, breach of confidence, unjust enrichment, invasion of privacy-intrusion upon seclusion, and violations of the Iowa Consumer Fraud Act and Iowa Personal Information Security Breach Protection Act.

CarePro denies all liability and wrongdoing and disagrees with all claims and contentions in the lawsuit. All parties agreed that further litigation, a trial, and any related appeals would likely be protracted and expensive and involve risks and uncertainties for all parties, so the decision was taken to settle the litigation. It took several months of negotiations; however, a settlement has been agreed upon that is acceptable to all parties.

The settlement includes three benefits for class members, which will be paid for from a $1,300,000 settlement fund after attorneys’ fees and expenses, class representative service awards, and settlement administration costs have been deducted.

A claim may be submitted for reimbursement of documented, unreimbursed losses due to the data breach up to a maximum of $5,000 per class member. In addition to or instead of a claim for reimbursement of losses, class members may claim a pro rata cash payment, which is expected to be $100 per class member. The cash payment will be adjusted upwards or downwards depending on the number of valid claims received.

All class members are also entitled to claim two years of three-bureau credit monitoring, dark web monitoring, and identity theft protection services. The cost of the credit monitoring services will be deducted from the settlement fund before the cash payments are calculated. The deadline for exclusion from and opting out of the settlement is December 3, 2025. Claims must be submitted by December 3, 2025, and the final fairness hearing has been scheduled for January 23, 2025.

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Discovery Practice Management, a California-based healthcare provider, has agreed to settle a class action lawsuit stemming from a June 2020 breach of its email environment. An unauthorized third party accessed employee email accounts between June 22, 2020, and June 26, 2020, and obtained sensitive information relating to patients of the Authentic Recovery Center and Cliffside Malibu facilities in California. The data breach was reported to the HHS’ Office for Civil Rights as affecting up to 12,859 individuals.

Data potentially compromised in the incident included names, addresses, dates of birth, medical record numbers, patient account numbers, health insurance information, financial account/payment card information, Social Security numbers, driver’s license numbers, and clinical information, such as diagnosis, treatment information, and prescription information. It took almost a year for the emails to be reviewed and notification letters to be issued to the affected individuals.

In February 2021, a class action lawsuit – JeanPaul Magallanes, et al v. Discovery Practice Management, Inc. – was filed in response to the data breach by JeanPaul Magallanes that alleged that Discovery Practice Management failed to implement appropriate measures to safeguard sensitive data stored on its network, then failed to issue adequate and timely notification letters when its email environment was compromised.

The alleged cybersecurity failures included insufficient monitoring of inbound emails, insufficient training of its workforce on email-based threats, and the failure to encrypt a data server that became accessible to unauthorized individuals who compromised two employee email accounts. Despite the significant risk to the affected patients, it took 335 days from the date of discovery to issue notification letters, which the lawsuit claims violated HIPAA and the California Consumer Records Act.

The lawsuit claims the actions of the defendant violated the California Confidentiality of Medical Information Act, California Unfair Competition Law, and the California Consumer Records Act. All parties agreed to engage in settlement discussions to avoid the cost and risk of a trial, and a settlement has been agreed upon with no admission of wrongdoing by Discovery Practice Management. The settlement has recently been granted preliminary approval by Judge Glenda Sanders of the Superior Court of the State of California, for the County of Orange.

Under the terms of the settlement, all class members are entitled to claim a three-year membership to CyEx’s Identity Defense Total Service, and must enroll by December 9, 2025. In addition, claims may be submitted for reimbursement of documented, unreimbursed ordinary and extraordinary losses caused by the data breach. Claims for reimbursement of ordinary losses are capped at $250 per class member, and claims for reimbursement of extraordinary losses are capped at $1,000 per class member.

The deadline for objection to the settlement, exclusion from the settlement, and submitting a claim is November 24, 2025. The final fairness hearing has been scheduled for February 5, 2026.

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Data breaches have recently been identified by Sun Valley Surgery Center in Nevada and American Associated Pharmacies in Alabama.

Sun Valley Surgery Center

Sun Valley Surgery Center in North Las Vegas, Nevada, has identified unauthorized access to its computer network. Anomalous activity was identified within its information systems on September 3, 2025. The forensic investigation confirmed that an unauthorized third party accessed parts of its network where sensitive patient information was stored.

Data potentially compromised in the incident included names, contact information, dates of birth, Social Security numbers, driver’s license/state-issued identification numbers, passport/other government identification numbers, and health information such as health histories, diagnosis/treatment information, explanation of benefits, health insurance information, and/or MRN numbers/patient identification numbers. Sun Valley Surgery Center has implemented additional safeguards and technical security measures to prevent similar incidents in the future. Approximately 27,000 individuals were potentially affected.

American Associated Pharmacies

One of the largest independent pharmacy organizations in the United States has recently fallen victim to a ransomware attack that resulted in the encryption of data on its systems. Scottsboro, AL-based American Associated Pharmacies (AAP) identified suspicious activity, including file encryption, within its computer network on October 23, 2024. Immediate action was taken to contain and mitigate the incident, including shutting down all affected systems and changing passwords to prevent further unauthorized access. The forensic investigation confirmed that initial access occurred ten days prior to the attack on October 13, 2024.

Assisted by third-party cybersecurity professionals, AAP determined that before file encryption, the attackers exfiltrated files from its network. The review of those files has recently been completed, and individual notifications are now being mailed to the affected individuals. Data compromised in the incident varies from individual to individual and may include names, addresses, birth dates, Social Security numbers, passport numbers, driver’s license number/other government-issued identification numbers, bank/financial account numbers/routing numbers, clinical/treatment information, medical information, provider names, medical record numbers, health insurance information, prescription information and/or usernames and passwords.

Several steps have been taken to augment security to prevent similar incidents in the future, including implementing further monitoring tools and expanding the use of multifactor authentication. The affected individuals have been advised to monitor their free credit reports, account statements, and explanation of benefits statements for suspicious activity. Credit monitoring and identity theft protection services have been offered to certain individuals, according to the notification sent to the Maine Attorney General. That notification indicates 8,032 individuals have been affected, including 25 Maine residents.

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