Robeson Health Care Corporation, a Pembroke, North Carolina-based integrated health system, has agreed to settle a class action lawsuit that alleged hackers compromised its network in a February 2023 cyberattack, exposing the protected health information of 62,627 individuals.

Hackers gained access to its network on or around February 21, 2023, and potentially accessed or acquired protected health information such as names, dates of birth, Social Security numbers, diagnosis and treatment information, medical record numbers, Medicare/Medicaid numbers, prescription information, health insurance information, and other sensitive data. The affected individuals started to be notified about the data breach on April 21, 2023.

In early to mid-May 2023, three lawsuits were filed against Robeson Health Care Corp. over the data breach by plaintiffs Julianna McKenzie, Judith Hammonds, and Ronnie McGriff in the United States District Court for the Eastern District of North Carolina. The plaintiffs asserted several claims, including negligence for failing to implement reasonable and appropriate safeguards to secure its network and protect patient data from unauthorized access. Robeson Health Care Corp. denies all claims and contentions in the lawsuit, including charges of wrongdoing and liability. Since continuing with the action would likely be expensive and protracted, all parties agreed to negotiate an appropriate settlement. That settlement has been determined to be fair by all parties and has received preliminary approval from the Superior Court of the State of North Carolina for the County of Robeson.

Under the terms of the settlement, Robeson Health Care Corp. has agreed to pay for benefits for class members, which will be capped at $750,000. Class members may submit a claim for up to $2,500 for reimbursement of documented, unreimbursed out-of-pocket losses that resulted from the data breach. Attorneys’ fees and costs have been capped at $250,000, and each of the three plaintiffs will receive a service award of $1,500.

Alternatively, class members may choose to receive a cash payment of $50, which will be paid pro rata after claims have been paid. The cash payments may be higher or lower depending on the number of claims received. In addition, class members can claim two years of single-bureau credit monitoring services. The deadline for exclusion from and objection to the settlement is June 23, 2025. The final approval hearing has been scheduled for July 21, 2025, and the deadline for submitting claims is August 6, 2025. Further information on the settlement can be found on the settlement website:  https://www.rhccdataincidentsettlement.com/

The post Robeson Health Care Corp. Agrees to $750K Data Breach Settlement appeared first on The HIPAA Journal.

Netgain Technology has agreed to settle consumer data breach litigation filed in response to a 2020 ransomware attack and data breach. Netgain will establish a $1.9 million settlement fund to cover claims from class members.

Netgain is a Minnesota-based cloud hosting and managed IT service provider with many clients in the healthcare industry. A ransomware group gained access to Netgain’s environment between September and December 2020 and deployed ransomware on November 24, 2020. The attack affected thousands of Netgain’s servers and forced it to take some of its data servers offline. The ransomware group was able to exfiltrate data in the attack, including the data of patients of its healthcare provider clients.  Data stolen in the attack included names, contact information, dates of birth, Social Security numbers, medical information, and financial information.

On May 13, 2021, plaintiffs Misty Meier and Jane Doe filed a class action complaint against Netgain, alleging their personally identifiable information (PII) and protected health information (PHI) were stolen in the attack. Further lawsuits were filed by plaintiffs Susan Reichert, Mark Kalling, Sherman Moore, Robert Smithburg, Thomas Lindsay, and Robert Guertin. On August 24, 2021, a federal judge consolidated the lawsuits into a single class action complaint – In Re: Netgain Technology, LLC, Consumer Data Breach Litigation – in the United States District Court for the District of Minnesota.

The lawsuit asserted several causes of action, some of which were dismissed; however, the causes of action for negligence and declaratory judgment were allowed to proceed, and a settlement has been negotiated that has received preliminary approval from the court.  Under the terms of the settlement, class members may submit claims for documented losses and lost time up to a maximum of $5,000 per class member, and after all payments have been made, any remaining funds in the settlement fund will be distributed pro rata among the class members.

Netgain has also agreed to injunctive relief for three years from the effective date of the settlement. Netgain has agreed to adopt, continue, or implement firewall upgrades, geo-blocking, routing through secured gateways, virus prevention technology across its data environment, multi-factor authentication in its hosting environments, backup data protection, and configure its network in a secure and scalable manner.

The post Netgain Technology Agrees to $1.9 Million Settlement to Resolve Data Breach Litigation appeared first on The HIPAA Journal.

A $2.4 million settlement has received final approval from the court to resolve a class action lawsuit against Somnia Inc. and others over a 2022 cyberattack and data breach.

Somnia manages anesthesiology services at more than a hundred surgery centers across the country. In the summer of 2022, Somnia experienced a cyberattack that saw hackers access parts of its network where patient information was stored. The forensic investigation confirmed that names, Social Security numbers, dates of birth, driver’s license numbers, financial account information, health insurance policy numbers, medical record numbers, Medicaid/Medicare IDs, and health information were potentially compromised. More than 450,000 individuals had their information exposed in the incident.

Several lawsuits were filed in response to the breach against Somnia, Anesthesia Services of San Joaquin, Palm Springs Anesthesia Services, Resource Anesthesiology Associates of IL, Resource Anesthesiology Association of NM, and Anesthesia Associates of El Paso. The lawsuits were consolidated into a single lawsuit as they all asserted similar claims and were based on the same facts.  The plaintiffs claimed that Somnia was negligent by failing to implement appropriate cybersecurity safeguards to ensure the privacy and confidentiality of the data stored on its network, did not follow industry security standards, and was not fully compliant with the HIPAA Rules.

The plaintiffs claimed they had suffered harm as a result of the data breach, including being placed at an elevated risk of identity theft and fraud. They also alleged that data breach notification letters were delayed and did not contain adequate information about the data breach, including the exact types of information that were stolen. The defendants denied and continue to deny any wrongdoing, and maintain the plaintiffs’ claims have no merit; however, the decision was taken to settle the litigation to prevent further legal costs and to avoid the risks and uncertainties associated with continuing to fight the litigation.

Under the terms of the settlement, a $2,425,000 settlement fund has been established to cover claims from class members for unreimbursed, documented out-of-pocket losses that are plausibly traceable to the data breach. $1 million of the settlement will be paid to the plaintiffs’ lawyers, $50,295 will be deducted to cover litigation expenses, and each of the 9 named plaintiffs will receive a $1,000 service award. The remainder of the settlement will cover class members’ claims, which were capped at $2,500 per class member. Any remaining funds in the settlement fund after claims and expenses have been paid will be paid pro rata to the class members.

The post Somnia’s $2.4 Million Data Breach Settlement Receives Final Approval appeared first on The HIPAA Journal.

A settlement has been agreed to resolve litigation stemming from a 2022 data breach at AllCare Plus Pharmacy. The Northborough, MA-based pharmacy detected the security incident on June 21, 2022, when suspicious activity was identified in an employee’s email account.

The investigation confirmed that hackers gained access to the email account after the employee responded to a phishing email. The review of the account confirmed it contained names, addresses, birth dates, Social Security numbers, driver’s license and other ID numbers, financial information, and limited health and health insurance information related to treatment and prescriptions. The breach was reported to the Maine Attorney General as affecting 5,971 individuals.

A lawsuit – Celeste Brown, et al. v. AllCare Plus Pharmacy LLC – was filed in the Suffolk County Superior Court of the Commonwealth of Massachusetts over the data breach, claiming the data breach occurred due to the failure to implement appropriate cybersecurity measures and follow industry standard security best practices.

According to the lawsuit, had those measures been implemented, the data breach could have been prevented. AllCare Plus Pharmacy maintains that there was no wrongdoing and that it had meritorious defenses in place; however, the pharmacy chose to settle the litigation to prevent further legal costs and to avoid the risks and uncertainty associated with continuing to fight the litigation.

Under the terms of the settlement, individuals who were notified that their data was compromised may submit claims for reimbursement of documented out-of-pocket losses. Claims may be submitted for ordinary losses up to a maximum of $750 per class member, which can include communication costs, credit monitoring costs, attorneys’ fees, accountants’ fees, and miscellaneous expenses.

Claims may also be submitted for extraordinary losses, such as losses due to identity theft and fraud, up to a maximum of $5,000 per class member. Class members may also claim up to five hours of lost time dealing with the consequences of the data breach at $20 per hour. Class members have been offered two years of complimentary credit monitoring and identity theft protection services. Class members who do not wish to submit a claim or receive credit monitoring services may choose to receive a cash payment of $50.

The settlement has received preliminary approval from the court, and the final fairness hearing has been scheduled for August 27, 2025. The deadline for exclusion from the settlement, objection to the settlement, and submitting claims is July 3, 2025. AllCare Plus Pharmacy said it has made security changes since the incident and will continue to review and update those security measures.

The post AllCare Plus Pharmacy Settles Class Action Data Breach Lawsuit appeared first on The HIPAA Journal.

Frederick Health Medical Group is facing several potential class action lawsuits over a recent data breach that affected more than 900,000 patients.  Frederick Health Medical Group, a Maryland-based healthcare group, announced on January 27, 2025, that it had fallen victim to a ransomware attack and had called in cybersecurity experts to investigate the incident. At the time, it was unclear to what extent patient data had been compromised in the incident, but it has now been confirmed that the electronic protected health information of 934,326 patients was stolen.

According to its March 28, 2025, substitute breach notice, the ransomware group stole data such as patient names, addresses, dates of birth, Social Security numbers, drivers’ license numbers, medical record numbers, health insurance information, and/or clinical information related to patients’ care. The electronic medical record system was not compromised in the attack. The name of the ransomware group behind the attack was not disclosed, and no ransomware group is known to have claimed responsibility for the attack. It is also unclear if the ransom was paid. In late March, individual notification letters started to be mailed to the affected individuals, and complimentary credit monitoring and identity theft protection services have been made available. Frederick Health Medical Group said additional cybersecurity safeguards have been implemented to better protect patient data and monitor its systems for unauthorized access.

At least five class action lawsuits have already been filed in response to the data breach. The lawsuits all assert similar claims, including negligence for failing to implement reasonable and appropriate cybersecurity measures to safeguard patient data and a failure to follow industry-standard cybersecurity best practices. The lawsuits also claim that the breach notification letters failed to disclose adequate information about the data breach, including the steps taken to prevent further attacks and even the types of data compromised in the incident. The lawsuits name Frederick Health Medical Group patients Ernest Farkas, Joseph Kingsman, Jaquelyn Chaillet, James Shoemaker, Wesley Kibler, and Jennifer McCreary as plaintiffs.

The lawsuits claim patients have suffered harm from the data breach, including an elevated and ongoing risk of identity theft and fraud, and out-of-pocket costs mitigating the harmful effects of the data breach. The lawsuits seek a jury trial, attorneys’ fees, and compensatory and punitive damages.

The post Ransomware Attack on Frederick Health Medical Group Affects 934,000 Patients appeared first on The HIPAA Journal.

A settlement has been agreed to resolve litigation against Octapharma Plasma over its April 2024 ransomware attack and data breach. Octapharma Plasma operates more than 190 blood plasma donation centers in 35 states. On or around April 17, 2024, Octapharma detected suspicious activity within its computer systems. The investigation confirmed unauthorized access to parts of its network where sensitive personal information was stored, including names, dates of birth, Social Security numbers, health information, donor eligibility information, financial information, employee data, and business data.

On April 26, 2024, shortly after the cyberattack was announced, a class action lawsuit was filed by Bret Woodall against Octapharma. Several other lawsuits were subsequently filed over the data breach, and the lawsuits were consolidated into a single action – Woodall v. Octapharma Plasma Inc. – since they were materially and substantively identical and had overlapping claims. The consolidated lawsuit alleged that Octapharma failed to reasonably secure, monitor, and maintain personal information, and as a result of that failure, the plaintiffs and class members suffered injuries and damages, including identity theft, loss of value of their personal information, lost time, and out-of-pocket expenses mitigating the effects of the data breach.

The lawsuit asserted claims of negligence, breach of fiduciary duty, breach of implied contract, unjust enrichment, breach of confidence, invasion of privacy, declaratory judgment, and violations of the California Customer Records Act, California Unfair Competition Law, California Consumer Legal Remedies Act, California Consumer Privacy, California Confidentiality of Medical Information Act, Oregon Consumer Identity Theft Protection Act, Oregon Unlawful Trade Practices Act, Illinois Personal Information Protection Act, Illinois Consumer Fraud and Deceptive Business Practices Act, Illinois Uniform Deceptive Trade Practices Act, and the North Carolina Unfair and Deceptive Trade Practices Act

Octapharma disagrees with all claims and contentions in the lawsuit and maintains there was no wrongdoing. After considering the likely costs of continuing with the litigation and the uncertainty and risks associated with a jury trial, all parties agreed to settle the litigation. It has taken several months of negotiations; however, a settlement has been negotiated that is acceptable to all parties. The settlement has recently received preliminary approval from the court.

Under the terms of the settlement, Octapharma has agreed to establish a $2,550,000 settlement fund, from which attorneys’ fees and expenses, service awards, and settlement administration costs will be deducted. The remainder of the settlement fund will be used to make payments to class members who submit a valid claim.

Class members are entitled to claim the following benefits:

• Reimbursement of documented, unreimbursed losses due to the data breach up to a maximum of $5,000 per class member
• A flat cash payment estimated to be $100
• Three years of credit monitoring services
• Individuals residing in California at the time of the data breach will be able to claim an additional flat cash payment of $50

The cash payments will be adjusted pro rata and may be higher or lower, depending on the number of valid claims received. Individuals wishing to exclude themselves or object to the settlement must do so by October 29, 2025. Claims must be submitted by November 14, 2025, and the final approval hearing has been scheduled for December 4, 2025.

September 24, 2024: Octapharma Plasma Notifies Individuals Affected by April 2024 Ransomware Attack

Octapharma Plasma, the U.S. arm of the Swiss pharmaceutical company Octapharma, has notified the California Attorney General about an April 2024 cyberattack that involved unauthorized access to personal information on its network.

Unauthorized network activity was identified on April 17, 2024, consistent with a cyberattack, and an investigation was launched with assistance provided by third-party cybersecurity experts. The attack forced Octapharma Plasma to temporarily close all of its plasma donation centers due to the inability to access IT systems. The investigation confirmed that on April 17, 2024, a threat actor accessed the network and exfiltrated files containing personal information. The incident was reported to the FBI, technical safeguards have been reviewed, and steps have been taken to strengthen its security controls to prevent similar incidents in the future.

The review of the affected files was completed on August 2, 2024, and the affected individuals are now being notified and have been offered complimentary credit monitoring and identity theft protection services for 24 months. The notice to the California Attorney General does not state what types of data were involved, but that information is detailed in the individual notification letters.

The BlackSuit ransomware group claimed responsibility for the attack and said it stole donor data, including names, addresses, dates of birth, and Social Security numbers, and employee data such as passports, contracts, contact information, family information, and medical examination information. It is currently unclear how many individuals have been affected by the ransomware attack and data breach.

At least two class action lawsuits have been filed against Octapharma Plasma over the data breach. The lawsuits allege that outdated and insecure computer systems and software were used and insufficient cybersecurity measures were in place, which allowed its network to be breached.

The lawsuits assert claims of negligence, negligence per se, unjust enrichment, breach of confidence, breach of fiduciary duty, breach of implied contract, breach of the implied covenant of good faith and fair dealing, and violations of the California Confidentiality of Medical Information Act and the North Carolina Unfair and Deceptive Trade Practices Act.

April 22, 2024: Octapharma Plasma Closes Donation Centers While It Deals with Suspected Ransomware Attack

The Swiss pharmaceutical firm, Octapharma Plasma, is dealing with a cyberattack that has affected systems at 190 plasma donation centers in 35 U.S. states. Those centers have been temporarily closed while the company responds to the attack and works on bringing the affected systems back online.

Octapharma identified suspicious activity within its network on April 17, 2024, and confirmed that an unauthorized third party had breached its network and disrupted certain parts of its operations. An investigation has been launched, and third-party cybersecurity experts have been engaged to investigate the attack and determine its impact. At this stage, Octapharma has yet to provide any further details about the attack, such as whether ransomware was used to encrypt files, and said further information will be released as the investigation progresses.

Without access to critical IT systems, donors are unable to visit its plasma donation centers. The plasma collected at its U.S. facilities is shipped to its European manufacturing plants and is used to create life-saving therapies. The disruption to plasma supplies threatens production at its EU-based facilities, given that 75% of the plasma used in its therapies is collected from donors in the United States.

A reporter at The Register spoke with a source familiar with the incident who claimed the attack occurred on Monday, April 15, 2024, and the BlackSuit ransomware group was responsible. BlackSuit is a relatively new ransomware operation that was discovered in May 2023. The group has significant similarities with the Royal ransomware group, which was a successor of the Conti ransomware operation.  The Register’s source claimed that vulnerabilities were exploited to gain access to Octapharma’s VMware systems, with BlackSuit ransomware used to encrypt files.

In November 2023, the Health Sector Cybersecurity Coordination Center (HC3) warned the healthcare and public health sector about BlackSuit ransomware. HC3 said the group appears to conduct indiscriminate attacks on a variety of industry sectors, including healthcare, manufacturing, business technology, business retail, and government sectors, and that the group engages in double extortion tactics, where stolen data is added to its data leak site if the ransom is not paid. As of April 22, 2024, Octapharma is not showing on the group’s data leak site.

The post $2.55M Settlement Agreed to Resolve Octapharma Plasma Data Breach Lawsuit appeared first on The HIPAA Journal.

A $49.99 million settlement has received preliminary approval from the court to resolve class action litigation against Heritage Provider Network, Regal Medical Group, and eight co-defendants over a December 2022 data breach that affected approximately 3,413,000 individuals.

California-based Heritage Provider Network (Heritage) and the affiliated defendants operate as one of the largest physician-owned integrated healthcare networks in the United States. Heritage, arranged to provide medical services for the plaintiffs and class members through affiliates such as Regal Medical Group. On or around December 1, 2022, hackers gained access to servers containing patient data and exfiltrated sensitive data such as names, addresses, dates of birth, Social Security numbers, and healthcare information. The investigation revealed the hackers had access to those servers until the attack was discovered on December 8, 2022, and between December 1 and 2, 2022, they are alleged to have exfiltrated personally identifiable information (PII) and protected health information (PHI). The defendants started sending notification letters to the affected individuals on February 2, 2023.

The first class action lawsuit over the data breach was filed on February 9, 2023, and it was followed by a further 25 lawsuits. The court designated Head v. Regal Medical Group, Inc., et al as the lead case and stayed all remaining actions, with all actions consolidated into the lawsuit Head, et al. v. Regal Medical Group, Inc., et al.  The other defendants named in the consolidated lawsuit are Lakeside Medical Group, ADOC Medical Group, Greater Covina Medical Group, Affiliated Doctors of Orange County Medical Group, Arizona Priority Care, Community Surgery Center of Glendale, Pacific Family Hospice, and Valley’s Best Hospice.

The lawsuit alleges the defendants were negligent for failing to implement reasonable and appropriate security measures to protect their IT infrastructure and sensitive patient data. The lawsuit also asserted claims of breach of implied contract, unjust enrichment, unfair business practices, and violations of the California Consumer Privacy Act of 2018, the California Confidentiality of Medical Information Act, Unfair Competition Law, the FTC Act, and the Health Insurance Portability and Accountability Act.

The defendants maintain there was no wrongdoing and there is no liability, while the plaintiffs believe they have made valid claims. To prevent further costs, protracted litigation, and to avoid the risks and uncertainty of trial, all parties engaged in discussions to resolve the litigation. It took three mediation sessions for all parties to agree on a settlement in principle to resolve the litigation. The terms of the settlement have now been finalized, and the settlement has received preliminary approval from Superior Court Judge Timothy P. Dillon of the Superior Court of the State of California, County of Los Angeles.

Under the terms of the settlement, the defendants will establish a $49,995,000 settlement fund from which attorneys’ fees and expenses, settlement administration costs, and service awards for the seven named plaintiffs will be paid. The remainder of the settlement will be used to pay benefits to the plaintiffs and class members. All plaintiffs are entitled to claim three years of comprehensive identity monitoring services. Claims may also be submitted for reimbursement of documented, unreimbursed out-of-pocket losses up to a maximum of $10,000 per class member, capped at $2,000,000. If that total is reached, claims will be paid pro rata. A claim may also be submitted for reimbursement of documented lost time dealing with issues arising from the data breach. Up to seven hours can be claimed at $30 per hour, or a maximum of $210. These claims will be capped at $1,000,000 and will be paid pro rata if that total is reached.

All plaintiffs are also entitled to claim a cash payment. The cash payments will be paid from the remainder of the settlement fund after costs, expenses, credit monitoring costs, and claims have been paid. The cash payments are expected to be between $68.72 and $357.97, depending on participation rates and the number of approved claims. The deadline for objection to and exclusion from the settlement is November 24, 2025. The deadline for submitting a claim is December 22, 2025, and the final approval hearing has been scheduled for January 28, 2025.

February 23, 2023: Multiple Lawsuits Filed Against Regal Medical Group Over 3.3 Million-Record Ransomware Attack

Several class action lawsuits have been filed against Regal Medical Group and affiliated healthcare providers following the February 1, 2023, announcement a HIPAA compliance breach where the protected health information (PHI) of up to 3,300,638 individuals had potentially been stolen in a December 2022 ransomware attack.

The attack affected Regal Medical Group, the Heritage Provider Network, and several affiliated healthcare providers, including Lakeside Medical Organization, A Medical Group, Inc., ADOC Acquisition Co., Greater Covina Medical Group Inc., and Affiliated Doctors of Orange County. The attack was detected on December 2, when employees started experiencing difficulty accessing data.

The forensic investigation revealed the attack started on or before December 1, with sensitive data exfiltrated from its servers on December 1. The stolen files included PHI such as names, phone numbers, addresses, dates of birth, diagnosis and treatment information, laboratory test results, prescription data, radiology reports, health plan member numbers, and Social Security numbers. Affected individuals were offered a 12-month membership to a credit monitoring service.

It is now common for multiple lawsuits to be filed after healthcare data breaches, so it is no surprise that so many lawsuits have been filed after an attack of this magnitude. One of the biggest concerns raised in the lawsuits was how the attackers were able to gain access to so much data, much of which was highly sensitive and could be misused in many different ways. The lawsuits were filed in the California superior state court and federal court, and each makes similar claims against Regal Medical Group and the Heritage Provider Network, including negligence, negligence per se, breach of implied contract, unjust enrichment, and unfair business practices. The lawsuits allege violations of the California Consumer Privacy Act of 2018, the California Confidentiality of Medical Information Act, Unfair Competition Law, the FTC Act, and the Health Insurance Portability and Accountability Act.

The lawsuits also take issue with the time taken to issue notifications about the breach, which started to be issued on February 1, 2022, when the data breach occurred on December 1, 2022. While the notifications were issued within the time frame allowed by the HIPAA Breach Notification Rule, that Rule also states that notifications should be issued without undue delay. One of the lawsuits also takes issue with the information provided in the notifications, which failed to provide full information on the nature of the breach, such as for how long the attackers had access to the stolen data.

One of the lawsuits, Timothy Head vs. Regal Medical Group Inc, Heritage Provider Network Inc. (Cole & Van Note), claims the defendants intentionally, willfully, recklessly, or negligently failed to take and implement adequate and reasonable measures to ensure that representative plaintiff(s)’ and class members PHI/PII was safeguarded,” also claims the defendants were negligent for failing to encrypt data.

Sam Abedi And Farnaz Doroodian v. Heritage Provider Network, Inc. and Regal Medical Group, Inc. (Zimmerman Reed LLP/ The Johnson Firm) and David Rodriguez v. Regal Medical Group (Wucetich & Korovilas LLP) make similar claims, including the defendants were well aware of the high prevalence of data breaches and had the resources available to protect data but failed to invest sufficiently in data security, the remediation of vulnerabilities, staff training, and testing security controls.

Lynn Austin vs. Regal Medical Group, Inc. (Parker & Minnie, LLP & Mason LLP) claims the plaintiffs have suffered actual and concrete injury, including out-of-pocket expenses, loss of valuable rights and protections, heightened stress, fear, anxiety, and risk of future invasions of privacy, and mental and emotional distress.

The lawsuits seek class action certification, a jury trial, actual and punitive damages, and injunctive relief, including an order from the courts to prohibit the defendants from engaging in unlawful acts and deceptive business practices and to ensure that a comprehensive information security program is implemented to protect against future data breaches.

The post $49.99M Settlement Agreed to Resolve Class Action Data Breach Lawsuit Against Heritage Provider Network et al appeared first on The HIPAA Journal.