American Addiction Centers $2.75M Class Action Settlement

Individuals who received a notice from American Addiction Centers Inc. regarding a September 2024 data breach may be eligible to claim up to $5,000 plus additional benefits from a class action settlement.

American Addiction Centers Inc. agreed to settle a class action lawsuit alleging it failed to adequately protect personal information during a cyberattack. The cybersecurity incident that occurred on or about Sept. 26, 2024, compromised sensitive personal and health information, including Social Security numbers, medical records and treatment details.

Who can file a data breach claim?

Class members must meet the following criteria:

• American Addiction Centers identified them as individuals whose private information the Sept. 26, 2024, data incident compromised.
• American Addiction Centers sent them an individual notification letter regarding the data incident between November and December 2024.

How much is the class action settlement payout?

Class members can claim one or more of the following benefits:

• Reimbursement for documented expenses and losses: Class members can claim reimbursement of actual, documented, unreimbursed expenses and losses fairly traceable to the data breach up to $5,000 per claimant. Eligible expenses include losses from fraudulent transactions, bank fees, postage, copying costs, travel and notary fees, credit repair service costs and costs for additional credit reports, credit monitoring or identity theft insurance.
• Cash payment: Class members may submit a claim for an estimated $50 pro rata cash payment to compensate for alleged privacy harms. The settlement administrator may increase or decrease the payment on a pro rata basis depending on the number of valid claims.
• Credit monitoring: All class members can enroll in two years of credit monitoring and identity theft protection services through one major credit bureau at no cost. The service includes at least $1 million in identity theft insurance.

If the total value of valid claims exceeds the fund, the settlement administrator will reduce payments on a pro rata basis. Claimants whose cash payment would be less than $10 will not receive a payout.

How to claim an American Addiction Centers class action settlement payment

To claim settlement benefits, class members must file a claim online or download, print, complete and mail a PDF claim form to the settlement administrator. The claim deadline is March 23, 2026.

Settlement administrator's mailing address: In re American Addiction Centers Inc. Data Breach Litigation, c/o Kroll Settlement Administration LLC, P.O. Box 5324, New York, NY 10150-5324

Required proof and claim information

• All class members must provide their contact information, including name, address, email and telephone number.
• For documented expense reimbursement, class members must provide third-party documentation showing the actual, unreimbursed monetary loss. Documentation may include receipts, bank statements or other records linking the loss to the data breach.
• For credit monitoring and cash payment, class members must attest to their eligibility. Documentation is not required unless requested.

$2.75 million settlement fund

The $2,750,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys’ fees and costs: Up to $916,666.67
• Service awards to class representatives: Up to $26,000 total
• Credit monitoring costs: Dependent on the number of valid claims
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: March 6, 2026
• Deadline to file a claim: March 23, 2026
• Final approval hearing: April 20, 2026

When is the American Addiction Centers data breach class action settlement payout date?

The settlement administrator will distribute payments and benefits after the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged American Addiction Centers failed to adequately secure and safeguard patient information, resulting in a cyberattack on or about Sept. 26, 2024. The plaintiffs claim cybercriminals accessed sensitive data, including Social Security numbers and medical information.

American Addiction Centers denies the allegations but agreed to settle to avoid the costs, risks and uncertainties of continued litigation and to provide benefits to affected individuals.

Sources

1. Class notice
2. Claim form
3. Settlement FAQ