Legal News about HIPAA Compliance

Labcorp Agrees to $35M Settlement to Resolve AMCA Data Breach Litigation

A $35,000,000 settlement has been agreed to resolve a long-running class action lawsuit against Labcorp over a 2018 cybersecurity incident at American Medical Collection Agency. Laboratory Corporation of America Holdings (Labcorp), a provider of diagnostic testing services, had contracted with a company called Retrieval-Masters Creditor’s Bureau, Inc., which does business as American Medical Collection Agency (AMCA), to collect outstanding payments for Labcorp’s services.

On May 14, 2019, AMCA notified Labcorp about a cybersecurity incident that resulted in unauthorized access to Labcorp patients’ protected health information. Hackers had access to AMCA’s systems between August 2018 and March 2019, and potentially viewed or obtained some of their protected health information. The data breach affected multiple AMCA clients and resulted in the exposure of the protected health information of more than 25 million individuals, including the data of 10,251,784 Labcorp patients.

Multiple class action lawsuits were filed in response to the data breach, which were consolidated into a single action – In Re: American Medical Collection Agency, Inc. Customer Data Security Breach Litigation – In the U.S. District Court for the District of New Jersey. The lawsuit asserted several claims, including negligence and breach of contract, all of which were denied by Labcorp, which maintains that there was no wrongdoing and that any alleged injury or damage was not caused by the security incident or any act or omission by Labcorp.

After six years of hard-fought litigation, all parties agreed to a settlement, in recognition that the outcome and final result through a trial and related appeals would involve substantial additional risk and uncertainty, discovery, and extensive time and expense. The $35,000,000 settlement resolves the Labcorp track of the litigation, with the settlement class consisting of all individuals whose information was transmitted by Labcorp to AMCA and was contained in AMCA’s systems at the time of the data breach. The settlement fund will be used to pay attorneys’ fees and expenses, notice and administration costs, and service awards for the 21 class representatives. The remainder of the settlement fund will be used to pay claims for reimbursement of losses, claims for alternative cash payments, and the cost of medical and healthcare information monitoring services.

All class members are eligible to claim a two-year membership to the CyEx Medical Shield Pro medical and healthcare information monitoring service. A claim may also be submitted for reimbursement of documented, unreimbursed losses due to the data breach up to a maximum of $5,000 per class member. Class members not wishing to submit such a claim may instead claim an alternative cash payment. The cash payments are estimated to be $50 per class member, but may be increased or decreased depending on the number of claims filed.

Individuals who do nothing will lose the opportunity to sue Labcorp over the data breach in the future. Benefits will only be paid to individuals who submit a claim.  The deadline for objection to the settlement and exclusion is July 27, 2026. The deadline for submitting a claim is September 3, 2026, and the final fairness hearing has been scheduled for September 3, 2026. Further information can be found on the settlement website: https://www.amcadatabreachsettlement83395.com/

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Duke University Health System; Derick Dermatology Settle Class Action Pixel Lawsuits

Two more healthcare providers have settled lawsuits over their use of website tracking technologies: Duke University Health System and Derick Dermatology.

Duke University Health System Pixel Settlement

A lawsuit filed against North Carolina’s Duke University Health System over the use of tracking tools on its website has been settled. Like many healthcare providers, Duke University Health System had added tracking tools such as pixels to its website. These tools collect information about website users, which can be used to improve web services. These tools can also transmit the collected information to third parties, and when placed on healthcare websites, that information may include health information, depending on a user’s interactions on the website.

A lawsuit was filed against Meta Platforms, Duke University Health System, WakeMed, and a defendant class of Facebook partner medical providers by plaintiffs Kim Naugle and Afrika Williams over the use of these tools. The claims against Meta Platforms were transferred to a separate class action lawsuit in California – In re Meta Pixel Healthcare Litigation – and the claims against WakeMed were consolidated into an existing state court case against the company. After voluntarily dismissing the lawsuit, plaintiff Afrika Williams filed a new lawsuit against Duke University Health System – Afrika Williams v. Duke University Health System, Inc. – in the U.S. District Court for the Middle District of North Carolina.

The lawsuit alleged that tracking tools had been added to its website by Duke University Health System without users’ knowledge or consent and resulted in personally identifiable information being transmitted to third parties, such as Meta. The lawsuit survived a motion to dismiss, and the claims against a defendant class of medical providers were dropped, along with several claims against Duke University Health System. The lawsuit proceeded against Duke University Health System for breach of contract and negligence.

Duke University Health System denies any wrongdoing, fault, and liability; however, following mediation, Duke University Health System agreed to a settlement. Duke University Health System will establish a $3,743,600 settlement fund to cover attorneys’ fees ($1,235,388) and expenses (up to $30,000), notification and settlement costs, and a $7,500 service award for the class representative. The remainder of the settlement fund will be used to pay pro rata cash payments to class members who submit a claim.

The deadline for objection and exclusion is July 20, 2026. The deadline for submitting a claim is August 16, 2026, and the final fairness hearing has been scheduled for August 27, 2026.

Derick Dermatology Pixel Settlement

Derick Dermatology, a dermatology practice with locations in Chicago, IL, and Tampa Bay, FL, has agreed to settle class action litigation over its use of pixels, cookies, code, and/or tracking or analytics, which are alleged to have disclosed website users’ personal information to third parties without their knowledge or consent.

The lawsuit – Jeffries v. Derick Dermatology PLLC – was filed in the Seventeenth Judicial Circuit in and for Broward County, Florida, and alleged that the use of these tools violated the Federal Wiretap Act, and that the actions of the defendant constituted a breach of fiduciary duty/confidentiality, invasion of privacy, breach of implied contract, unjust enrichment, and negligence. The defendant denied and continues to deny any wrongdoing, and that they committed, or threatened or attempted to commit, any wrongful act or violation of law or duty alleged in the action.

After considering the likely costs, distraction, disruption to business operations, and risks associated with any litigation, the defendant agreed to settle the lawsuit. Derik Dermatology has agreed to pay up to $1,000,000 to settle the lawsuit. From that amount, attorneys’ fees and expenses, settlement administration and notification costs, and a service award for the class representative will be deducted.

Class members are entitled to claim a one-year subscription to a privacy shield product, and may submit a claim for a one-time cash payment, which is expected to be up to $12.50 per class member. The deadline for objection and exclusion is June 22, 2026. The deadline for submitting a claim is July 21, 2026, and the final fairness hearing has been scheduled for August 17, 2026.

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Henderson & Walton Women’s Center Settles Class Action Data Breach Lawsuit

Henderson & Walton Women’s Center, a Birmingham, AL-based provider of women’s healthcare services, has agreed to settle a class action lawsuit stemming from a 2022 data breach that exposed the personal and protected health information of 34,306 individuals. The forensic investigation confirmed that an unauthorized third party had access to an employee’s email account between February 11, 2022, and February 14, 2022, and potentially obtained information such as names, dates of birth, driver’s license or state ID numbers, and medical and treatment information.

Plaintiff Kim Townsel filed a lawsuit – Townsel v. Henderson & Walton Women’s Center, P.C. – against Henderson & Walton Women’s Center in the Circuit Court for Jefferson County, Alabama, over the data breach, alleging a failure to properly secure and safeguard the sensitive and confidential information of patients through the use of encryption and other cybersecurity measures. The lawsuit alleged that the failure amounted to negligence. In addition to the negligence and negligence per se claims, the lawsuit asserted claims for breach of implied contract, unjust enrichment, and breach of fiduciary duty.

Henderson & Walton Women’s Center maintains that there was no wrongdoing and disagrees with the claims made in the lawsuit; however, it agreed to a settlement to avoid the costs, distractions, and disruptions to its business from continuing with the litigation. The plaintiff and class counsel believe the settlement is fair, and the settlement has received preliminary approval from the court.

Under the terms of the settlement, class members are entitled to claim compensation for ordinary losses incurred as a result of the data breach up to a maximum of $150 per class member, plus compensation for extraordinary losses up to a maximum of $2,500 per class member. Individuals who lost time dealing with the data breach may claim reimbursement of up to three hours of lost time at $30 per hour. Class members are also entitled to enroll in three years of medical and credit monitoring services.

The deadline for objection and comments on the settlement is June 29, 2026. Individuals wishing to exclude themselves must do so by July 13, 2026. The final fairness hearing has been scheduled for August 12, 2026.

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Onsite Women’s Health $2.5M Data Breach Settlement

A breach of the email account of an employee of Onsite Women’s Health that exposed the protected health information of 357,265 individuals has resulted in a $2,525,000 settlement. Onsite Mammography, LLC, which does business as Onsite Women’s Health, a Westfield, Massachusetts-based provider of medical imaging services to hospitals, identified unauthorized access to an employee’s email account in October 2024.

The email account was compromised as a result of a response to a phishing email, and while the account was only accessible for a short period of time, sensitive data was exfiltrated, including names, dates of birth, Social Security numbers, driver’s license numbers, credit card numbers, and information related to patients’ mental or physical conditions, and any care they received.

Multiple class action lawsuits were filed in response to the data breach, which were consolidated – Clarkson, et al. v. Onsite Mammography, LLC, d/b/a Onsite Women’s Health – in the United States District Court District of Massachusetts.  The consolidated lawsuit alleged that inadequate security measures had been implemented to prevent attacks on employee email accounts, and if those measures had been implemented, the data breach could have been prevented or at least the attack could have been detected more quickly, limiting the harm caused.

While the affected individuals were offered 12 months of complimentary credit monitoring services, the plaintiffs argue that the offer was insufficient considering the level of risk they face. They also claim that the defendant provided no reassurances that the stolen data had been deleted or that security had been sufficiently strengthened to prevent similar incidents in the future.

The lawsuit asserted claims for negligence, breach of implied contract, breach of fiduciary duty, invasion of privacy, unjust enrichment, and declaratory judgment. The defendant maintains there was no wrongdoing and disagrees with the claims and contentions asserted by the plaintiffs. Despite disagreeing with the claims, after considering the likely costs and risks associated with continuing with the litigation, Onsite Women’s Health agreed to settle the lawsuit.

Under the terms of the settlement, Onsite Women’s Health will establish a $2,525,000 settlement fund to cover attorneys’ fees and expenses, settlement administration and notification costs, and service awards for the eight class representatives. The remainder of the settlement fund will be used to cover benefits for the class members.

Class members may submit a claim for reimbursement of documented, unreimbursed losses incurred as a result of the data breach up to a maximum of $5,000 per class member. A claim may also be submitted for three years of credit and medical data monitoring and insurance services. Class members may also claim a pro rata cash payment, which will be paid after all costs and claims have been paid and will exhaust the settlement fund. The deadline for objection and exclusion is July 13, 2026. Claims must be submitted by August 11, 2026, and the final fairness hearing has been scheduled for September 9, 2026.

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$3.3M Settlement Resolves Data Breach Lawsuit Against Mt. Baker Imaging & Northwest Radiologists

Mt. Baker Imaging and Northwest Radiologists have agreed to pay $3,300,000 to settle a consolidated class action lawsuit stemming from a January 2025 ransomware attack and data breach affecting hundreds of thousands of patients.

Mt. Baker Imaging is a Washington-based medical imaging provider that uses Northwest Radiologists for interpreting medical images. In January 2025, a cyberattack was identified, and the forensic investigation determined that an unauthorized third party accessed its network between January 20, 2025, and January 25, 2025, and obtained files containing names, contact information, dates of birth, Social Security numbers, driver’s license or state identification card numbers, treatment or diagnosis information, and health insurance information. The data breach was reported to the Washington Attorney General as affecting 348,118 state residents, and the HHS’ Office for Civil Rights was informed that the protected health information of up to 362,713 individuals was compromised in the incident.

Multiple class action lawsuits were filed in response to the data breach, which were consolidated in a single complaint – In re: Mt. Baker Imaging, LLC, Data Security Litigation – in the Superior Court of the State of Washington for Whatcom County. The lawsuit alleged that the defendants failed to implement and maintain necessary data security safeguards, and asserted claims for negligence, breach of implied contract, invasion of privacy-intrusion upon seclusion, unjust enrichment, and violations of the Uniform Health Care Information Act, Washington Consumer Protection Act, Washington Data Breach Notification Disclosure Law, and Washington My Health My Data Act.

The defendants and the plaintiffs disagree about the legal claims made in the litigation; however, all parties agreed that a settlement was the best outcome, due to the benefits provided to the class members and the avoidance of the costs, risks, and uncertainty of continuing with the litigation. The defendants have agreed to establish a $3,300,000 settlement fund to cover attorneys’ fees and expenses, settlement administration and notification costs, and service awards for the nine class representatives. The remainder of the settlement fund will be used to pay benefits to approximately 340,184 class members.

All class members are entitled to claim a two-year membership to a medical identity theft protection and monitoring service, and may submit claims for reimbursement of documented, unreimbursed losses due to the data breach up to a maximum of $5,000 per class member, and claim a pro rata cash payment. The pro rata cash payments will distribute the net amount of the settlement fund after costs, expenses, claims, and medical identity theft protection and monitoring costs have been paid.

The deadline for objection and exclusion is July 20, 2026, and claims must be submitted by August 19, 2026. The settlement has received preliminary approval from the court, and the final fairness hearing has been scheduled for August 21, 2026.

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Family Medicine Centers Pays $2.15M to Resolve Data Breach Lawsuit

FMC Services, LLC, which does business as Family Medicine Centers in Texas, has agreed to a $2,150,000 settlement to resolve claims related to a July 2022 data breach. Amarillo, TX-based Family Medicine Centers is a network of four primary care clinics in Amarillo and Canyon, and urgent care clinics operating under the name of CareXpress.

On or around July 26, 2022, a data security incident was identified. Unauthorized individuals accessed its network systems, which contained personally identifiable information (PII) and protected health information (PHI) such as names, mailing addresses, birth dates, and Social Security numbers, and health information. The data breach was reported to the HHS’ Office for Civil Rights as involving the protected health information of 233,948 individuals. According to the lawsuit, notification letters were sent to 266,540 individuals.

Multiple lawsuits were filed in response to the data breach, which were consolidated into a single complaint – Sharber, et al. v. FMC Services, LLC – in the District Court of Potter County, Texas. The consolidated lawsuit alleged that the defendant had implemented inadequate data security measures, resulting in an intrusion and the theft of sensitive data. The lawsuit asserted claims of negligence, negligence per se, breach of fiduciary duty, breach of implied contract, and unjust enrichment, and sought declaratory relief, injunctive relief, monetary damages, statutory damages, punitive damages, and equitable relief.

Family Medicine Centers denied and continues to deny all claims and contentions in the lawsuit, including claims of wrongdoing, fault, and liability. In mid-2024, the parties began discussing the prospect of a settlement to bring the litigation to an end. A mediation session was scheduled but ended without a settlement being reached. Following extensive discovery and litigation, and a failed defendant’s Motion for Summary Judgment, the parties agreed to a second attempt at mediation, and the material terms of a settlement were agreed upon.

The terms of the settlement have now been finalized, and the settlement has received preliminary approval from the court. The final fairness hearing has been scheduled for September 15, 2026. The defendant has agreed to establish a $2,150,000 settlement fund, which will be used to pay benefits to the class members, once attorneys’ fees and expenses, settlement administration and notification costs, and service awards for the four class representatives have been deducted.

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. If a claim for reimbursement of losses is not submitted, class members may instead file a claim for an alternative cash payment, which is estimated to be $75 per class member, although the amount depends on the remaining funds once the reimbursement claims have been paid.

In addition to one of the cash payments, a claim may be submitted for a two-year membership to a medical data monitoring service. Class members wishing to object to or exclude themselves from the settlement must do so by August 17, 2026. Claims must be submitted by August 31, 2026.

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Mission Community Hospital Pays $1.55M to Settle Data Breach Lawsuit

Deanco Healthcare, LLC, the operator of Mission Community Hospital, an acute care hospital serving patients in the San Fernando Valley in California, has agreed to a settlement to resolve claims stemming from a cyberattack that was discovered by the hospital on May 1, 2023.

According to the forensic investigation, the unauthorized access started the same day, and while the attack was quickly identified and contained, the threat actor exfiltrated files containing patient data such as names, addresses, dates of birth, Social Security numbers, driver’s license numbers, and financial account information. The Ransomhouse ransomware group took responsibility for the attack and claimed to have exfiltrated around 2.5 terabytes of data. The data breach was reported to the HHS’ Office for Civil Rights as affecting 269,547 individuals.

Two class action lawsuits were filed in response to the data breach in the Superior Court of California for the County of Los Angeles, which were consolidated into a single action – Concepcion et al. v. Deanco Healthcare – as they had overlapping claims.  The consolidated lawsuit claimed that the defendant was negligent and should have prevented the cyberattack and data breach. The claims were denied by the defendant, which maintains that there was no wrongdoing and that there is no liability. All parties ultimately agreed to a settlement to avoid the costs of continued litigation and the uncertainty of a trial.

Mission Community Hospital in California has agreed to pay $1.546,409.42 to settle the lawsuit. Class members – individuals who were notified by Mission Community Hospital, Deanco Healthcare, or a Deanco affiliate that they had been affected by the incident – may claim one or more benefits, which will be paid after attorneys’ fees and expenses ($541,243.30 + up to $50,000), settlement administration costs (up to $235,400), and service awards for the class representatives ($2,000 each; $4,000 total) have been paid. Should claims exceed the residual funds, they will be paid pro rata.

Class members are entitled to claim a two-year membership to a medical data monitoring service, and California residents at the time of the data breach may claim a $100 statutory payment. In addition, 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. A claim may also be submitted for a cash payment, which will be paid pro rata from the residual funds after the above benefits have been paid. The deadline for objection and opting out is July 13, 2026. The deadline for filing a claim is August 12, 2026, and the final approval hearing has been scheduled for September 9, 2026.

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Home Healthcare Agency Owner Facing Decades in Jail for $1.6M Medicare Fraud Scheme

The owner and operator of a Michigan home health care company has been convicted of five counts of healthcare fraud and four counts of paying illegal healthcare kickbacks and now faces decades in jail. Ruby Scott, 55, of Farmington Hills, Michigan, the owner and operator of Delta Home Health Care LLC, was alleged to have operated a fraud scheme that caused more than $1.6 million in losses to the Medicare program. From 2018 to 2021, Scott was alleged to have fraudulently billed Medicare for home health services using stolen patient records.

Scott bribed a discharge nurse at a Detroit hospital to identify Medicare patients and fax their medical records to Delta Home Health Care. Scott developed a kickback relationship with the nurse, paying approximately $300 for each set of patient records that were successfully used to bill Medicare. The discharge nurse was paid more than $130,000 via PayPal, CashApp, cash, and check for providing the records.

Scott used confidential diagnostic and personal information to bill Medicare for home healthcare services for the patients, falsely representing that a doctor had certified that the patients satisfied the Medicare requirements for home health care services. The patients were unaware that their personal and health information was being used to submit false claims, and the doctors had never met any of the patients and did not know that their information was being used on the fraudulent claims. Medicare paid approximately $1.2 million to Delta, causing approximately $1.6 million in losses to the Medicare program.

Scott was charged with multiple counts of fraud and operating an illegal kickback scheme and was recently convicted by a federal jury in the Eastern District of Michigan. The jury found Scott guilty of five counts of health care fraud, conspiracy to defraud the United States, and pay illegal health care kickbacks, and four counts of paying illegal health care kickbacks. The healthcare fraud and kickback counts each carry a maximum sentence of 10 years in prison, and Scott faces a maximum of 5 years in jail for the conspiracy count. Scott is due to be sentenced on September 24, 2026.

“The [Department of Justice] Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people,” explained the Department of Justice in a press release announcing the guilty verdict. “The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

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Datavant Group to Pay $900,000 to Settle Class Action Data Breach Lawsuit

A settlement has been agreed to resolve a class action lawsuit against Ciox Health, which does business as Datavant Group, an Arizona-based health IT company, over a May 2024 email-related data breach.

Suspicious activity was identified within an employee’s email account on May 9, 2024. The forensic investigation confirmed that an unauthorized individual had access to the account between May 8 and May 9, 2024. Access to the account was gained after an employee responded to a phishing email. The breach was reported to the HHS’ Office for Civil Rights as affecting 320,702 individuals. Data potentially compromised in the incident included names, dates of birth, addresses, contact information, Social Security numbers, financial account information, driver’s license numbers, passport numbers, and health information.

A lawsuit was filed in response to the data breach – Jackson v. Ciox Health, LLC d/b/a Datavant Group – in the United States District Court for the District of Arizona. The lawsuit alleged that the defendant failed to implement sufficient security measures to protect patients’ sensitive information. The lawsuit alleged that the failure amounted to negligence and that the defendant had violated the Illinois Consumer Fraud and Deceptive Business Practices Act.

As is common in class action data breach lawsuits, the parties explored the possibility of an early resolution to the lawsuit to avoid the costs and risks associated with continuing with the litigation. An appropriate settlement was agreed upon by all parties, and the settlement has received preliminary approval from the court. Datavant Group has agreed to pay $900,000 to resolve the lawsuit. The settlement fund will be used to pay attorneys’ fees and expenses, service awards for the class representatives, settlement administration and notification costs, and benefits for the class members. While the OCR breach portal states that more than 320,000 individuals were affected, the class consists of 58,309 individuals.

Class members may submit a claim for up to $5,000 as reimbursement for documented, unreimbursed losses incurred as a result of the data breach. Alternatively, a claim may be submitted for a one-time pro rata cash payment. The amount of each cash payment will depend on the number of valid claims received. In addition to one of those benefits, class members may also enroll in one year of expanded identity theft protection and fraud monitoring services. The deadline for objection and exclusion is July 20, 2026. Claims must be submitted by August 18, 2026, and the final fairness hearing has been scheduled for September 4, 2026.

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