HCA Healthcare Inc. has agreed to settle class action litigation stemming from a July 2023 data breach that was reported to the HHS’ Office for Civil Rights as affecting 11,270,000 patients. The affected individuals had received healthcare services at HCA hospitals and doctors’ offices in 20 U.S. states.
HCA Healthcare was targeted by hackers who accessed and stole data from an external storage location, which was used to automate the formatting of email messages. A database was stolen that contained 27.7 million records. The hackers listed the database for sale when the ransom was not paid. Data compromised in the incident included names, contact information, dates of birth, and appointment information.
HCA Healthcare announced the data breach on or around July 10, 2024, and the first class action lawsuit was filed within a couple of days of the announcement. In total, 27 putative class action lawsuits were filed against HCA Healthcare in response to the data breach, which alleged negligence for inadequate cybersecurity practices and for failing to properly safeguard patient data. The lawsuits were consolidated – In re HCA Healthcare, Inc. Data Security Litigation – in the U.S. District Court for the Middle District of Tennessee.
HCA Healthcare denies the claims and contentions in the lawsuit; however, it negotiated a settlement to resolve the litigation, with no admission of liability or wrongdoing. While the total settlement amount has not been disclosed, attorneys for the plaintiffs may claim up to $3.1 million in fees. Attorneys usually claim one-third of the total settlement amount, which suggests the total settlement fund is greater than $9 million. The fifteen class representatives will each be paid a service award of up to $5,000.
Claims from class members will be paid once attorneys’ fees, expenses, settlement administration costs, and service awards have been deducted from the settlement fund. Class members may claim a one-year membership to a credit monitoring, fraud consultation, and identity theft restoration service, which includes a $1 million identity theft insurance policy. Class members may also submit a claim for reimbursement of documented, unreimbursed losses fairly traceable to the data breach up to a maximum of $5,000 per class member. HCA Healthcare has also confirmed that it will adopt, implement, and maintain security commitments to prevent similar incidents for at least two years from the settlement date. Those commitments have been filed under seal.
The deadline for exclusion from and objection to the settlement is August 25, 2025. Claims must be submitted by September 25, 2025, and the final fairness hearing is scheduled for October 27, 2025.
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