SAG-AFTRA Health Plan has settled a class action lawsuit over a September 2024 email data breach. Hackers gained access to the health plan’s email systems between September 17 and September 18, 2026, after employees responded to phishing emails. The attack exposed sensitive personal and protected health information, which was potentially copied by the hackers.
Data compromised in the incident included names and Social Security numbers and, for some individuals, health information, claims information, and plan participant identification numbers. The breach was reported to the HHS’ Office for Civil Rights initially as affecting 35,592 individuals, although that total was later increased to 98,474 individuals. The lawsuit states that approximately 94,546 notification letters were mailed.
The first class action lawsuit over the data breach was filed by plaintiffs Matthew Rouillard and Kristy Munden in December 2024, and a further three class action lawsuits were subsequently filed by other plaintiffs. The lawsuits had overlapping claims, so were consolidated into a single action – In re SAG Health Data Breach Litigation – in the U.S. District Court for the Central District of California.
The consolidated lawsuit asserted several claims, including negligence and violations of California laws. To avoid the expense, distraction, and uncertainty of a trial and related appeals, SAG-AFTRA Health Plan and the plaintiffs agreed to a settlement. SAG-AFTRA Health Plan has agreed to establish a $950,000 settlement fund to cover attorneys’ fees and expenses, claims administration costs, service awards for the class representatives, and benefits for 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 will be paid from the remaining funds after claims and costs have been deducted. Individuals who were not California residents at the time of the data breach will receive one pro rata share of the remainder of the settlement fund, and California residents will receive two shares.
All class members will receive an 18-month membership to a credit monitoring and identity theft protection service, even if they do not submit a claim for reimbursement of losses or a cash payment. Claims must be submitted by July 23, 2026. The deadline for objection and exclusion is June 23, 2026, and the final fairness hearing has been scheduled for September 24, 2026.
December 13, 2026: SAG-AFTRA Members Sue Health Plan Over Email Breach
A class action lawsuit has been filed by members of the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) health plan over a recent email phishing attack that exposed their protected health information. An unauthorized third party accessed an employee’s email account between September 17 and September 18, 2024, after the employee responded to a phishing email and potentially viewed or copied names, Social Security numbers, health insurance information, and claims information. The breach was reported to the HHS’ Office for Civil Rights as affecting 35,592 individuals, and individual notifications were mailed on December 2, 2024. The total was later increased to 98,474 individuals.
Three days after notification letters were mailed, a lawsuit was filed by Clarkson Law Firm P.C. in the U.S. District Court in Los Angeles that names SAG-AFTRA members Matthew Rouillard and Kristy Munden as plaintiffs. The lawsuit alleges SAG-AFTRA failed to implement reasonable and appropriate cybersecurity measures to prevent unauthorized access to members’ sensitive data, which was exfiltrated in the attack, failed to adequately monitor its network and computer systems, and failed to issue timely notifications about the breach. Notification letters were sent more than 2 months after the email account breach was discovered.
The lawsuit alleges the plaintiffs and class members have suffered injuries such as out-of-pocket expenses associated with preventing, detecting, and remediating identity theft, social engineering, and fraud; lost opportunity costs while attempting to mitigate the consequences of the data breach; lost time; an invasion of privacy; diminution in value of their private information; and an increased risk of identity theft and fraud.
The lawsuit claims that in light of the data breach and lack of cybersecurity protections, members overpaid for their health plans. The lawsuit asserts claims of unjust enrichment, invasion of privacy, negligence, breach of express warranty, and violations of the California Civil Code (Deceit by concealment), California Unfair Competition Law (Business & Professions Code), and the California Confidentiality of Medical Information Act.
The lawsuit seeks class action status, a jury trial, monetary damages, restitution, and an order from the court requiring adequate security protocols to be implemented, proper notice to be provided to the affected individuals, and prohibiting the health plan from engaging in further wrongful acts.
The post SAG-AFTRA Health Plan Settles Lawsuit Over 2024 Phishing Incident appeared first on The HIPAA Journal.