Allwell Behavioral Health has proposed a $650,000 settlement to resolve a class action lawsuit that was filed on behalf of victims of a March 2022 data breach that affected 29,972 patients.

The breach was detected on March 5, 2022, and sensitive data was found to have been accessed by unauthorized individuals on March 3, 2022. The compromised data included names, dates of birth, Social Security numbers, phone numbers, treatment activity, treatment provider, treatment date, treatment location, and payer information. The lawsuit alleged Allwell Behavioral Health was negligent for failing to adequately secure patient data.

Allwell Behavioral Health admitted no wrongdoing; however, chose to settle the lawsuit to prevent further legal costs and to avoid the uncertainty of trial. Under the terms of the settlement class members are entitled to receive a $50 payment, which may be increased depending on the number of claims received. Claims of up to $4,000 may be submitted to cover extraordinary, unreimbursed monetary losses, which can include up to 5 hours of lost time at $25 per hour.

Class members have until September 11, 2023, to object to or exclude themselves from the settlement and must submit claims by October 11, 2023, and by October 2, 2023, if they did not receive a Notice ID. The final fairness hearing has been scheduled for November 9, 2023.

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