American Medical Collection Agency $6.44M Data Breach Lawsuit

Individuals who received diagnostic services from Sonic Healthcare USA, Aurora Diagnostics LLC, Clinical Pathology Laboratories Inc. or Austin Pathology Associates and received notification that a data breach that occurred between Aug. 1, 2018, and March 30, 2019, may have affected their personal information could qualify to claim up to $5,000 plus credit monitoring from a class action settlement.

The companies agreed to pay $6,438,578.20 to settle a class action lawsuit alleging they failed to adequately protect patient data during a cybersecurity incident involving American Medical Collection Agency. The data breach potentially exposed personally identifiable information and/or protected health information, such as names, addresses, phone numbers, Social Security numbers, payment card information and medical diagnostic details.

Who can file a claim?

Class members must meet one of the following criteria:

• They received a notice from Clinical Pathology Laboratories, or from American Medical Collection Agency on behalf of CPL, stating the AMCA security incident involved or may have involved their information.
• They received a notice from Austin Pathology Associates, or AMCA on behalf of Austin Pathology Associates, stating the AMCA security incident involved or may have involved their information.

How much can class members receive?

Class members may claim either reimbursement for out-of-pocket losses or an alternative cash payment. Both options are subject to pro rata increases or decreases depending on the number of valid claims submitted and the net settlement fund remaining after the settlement administrator pays all other expenses.

• Out-of-pocket reimbursement: Class members can claim up to $5,000 for unreimbursed losses or charges due to identity theft, identity fraud, medical fraud or misuse of personal information. This includes:
• Professional service costs, such for as law firms or credit repair services, related to misuse of personal information
• Miscellaneous expenses related to any out-of-pocket loss, such as notary, fax, postage, copying, mileage and long-distance telephone charges
• Credit monitoring costs incurred on or after Aug. 1, 2018, through Jan. 4, 2027
• Up to 10 hours for verified and documented time spent remedying fraud, identity theft or similar misuse of personal information at $25 per hour

• Alternative cash payment: Estimated at $50 per class member
• Medical and health care information monitoring: In addition to one of the two cash payment options, class members can receive up to two years of CyEx Medical Shield Pro services.

How to claim a settlement payment

Class members must submit a valid online claim form or print and complete the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: Kroll Settlement Administration LLC, P.O. Box 5324, New York, NY 10150-5324

The deadline to file a claim is Jan. 4, 2027.

Required proof/documentation

• For out-of-pocket losses, claimants provide documentation demonstrating they actually incurred the costs or expenditures and that they are fairly traceable to the AMCA security incident. Acceptable documentation includes receipts, invoices or other records. Self-prepared documents, such as handwritten receipts, are not sufficient by themselves but can be used to clarify other documentation. Claimants must also attest that the losses are directly related to the security incident and not another event.
• For the alternative cash payment, claimant do not need to provide documentation but must attest to their eligibility as a class member.
• For medical monitoring services, claimants simply need to elect this option on the claim form.
• For online claims, class members must provide the class member ID they received with their settlement notice.

Payout options

• Electronic payment (online claims only)
• Check mailed to the address provided
• Access code for medical monitoring services (if selected)

$6.44 million settlement fund

The $6,438,578.20 settlement fund includes:

• Settlement administration costs: Amount not specified
• Attorneys' fees and expenses: Up to $2,189,116.59
• Service awards to class representatives: $5,000 each ($10,000 total)
• Medical monitoring services: Cost determined by number of claims filed
• Taxes: Paid from the fund as needed
• Payments to eligible class members: Remaining settlement funds

Important dates

• Deadline to opt out: Dec. 3, 2026
• Deadline to file a claim: Jan. 4, 2027
• Final Fairness Hearing: Jan. 7, 2027

When is the settlement payout date?

The settlement administrator will issue payments and benefits to eligible class members after the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

A cybersecurity incident at AMCA allegedly compromised the personal and health information of individuals who received diagnostic services from the defendant companies.

The defendants denied any wrongdoing or liability but agreed to settle the claims to avoid the expense and risk of a trial.

Sources

1. Claim form
2. Class notice
3. Settlement agreement.pdf)
4. Settlement website FAQ page