Bayhealth Medical Center $2.5M Data Breach Settlement

Current and former patients who live in the United States and received notice from Bayhealth Medical Center that their personal information may have been compromised in a data breach discovered in July 2024, may qualify to submit a claim for up to $5,000, plus free medical monitoring, from a class action settlement. The cyberattack compromised PII and PHI belonging to an estimated 497,047 individuals.

Bayhealth Medical Center Inc. has agreed to pay $2.5 million to settle a class action lawsuit for alleged negligence, negligence per se, breach of implied contract, invasion of privacy, unjust enrichment, breach of fiduciary duty, and declaratory judgment related to a 2024 ransomware attack that potentially exposed sensitive personal and protected health information.

Who can file a claim for a data breach payout?

Class members must meet the following criteria:

• They are identified on the settlement class list prepared by Bayhealth Medical Center Inc.
• They resided in the United States at the time of the data breach discovered by Bayhealth in July 2024, and received notice from Bayhealth that their personal information may have been involved in the data breach.

How much is the settlement payment?

Class members can submit a claim for one or more of the following:

• Pro rata cash payment: Class members can submit a claim for an estimated $60 cash payment. Final payment amount will be determined by the total number of claims filed.
• Reimbursement for out-of-pocket losses: Class members can claim up to $5,000 for documented, unreimbursed expenses that are fairly traceable to the data breach. This may include monetary losses due to identity theft or fraud, fees for credit monitoring services purchased after July 31, 2024, cost of freezing/unfreezing credit reports and expenses such as notary and copying.
• Medical monitoring services: All class members can elect to receive medical monitoring services, which includes two years of one-bureau credit monitoring, dark web monitoring, real-time inquiry alerts, and $1 million in identity theft insurance.

How to claim a class action rebate

To claim a settlement payment, class members can file a claim online or download the PDF claim form to print and mail to the settlement administrator.

Settlement administrator's mailing address: Dunlop, et al., v. Bayhealth Medical Center, Inc. c/o Kroll Settlement Administration LLC P.O. Box 225391 New York, NY 10150-5391

Claims must be submitted online or postmarked by April 20, 2026.

Required proof and claim information

• Class Member ID from official settlement notice required to submit a claim.
• Out-of-pocket losses claims require supporting documentation, which may include receipts, invoices, bank or credit card statements showing unreimbursed fees or fraudulent charges, police report and other proof of identity theft or fraud.

Payout options

• Electronic payment, available for online claims only
• Paper check mailed to the address provided

$2.5 million data breach settlement fund

The $2,500,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $833,333.33
• Attorneys' expenses: To be presented to the court for approval at a later date
• Service awards to class representatives: Up to $5,000 each, $15,000 total
• Payments to approved claimants: Remaining settlement funds

Important dates

• Deadline to file a claim: April 20, 2026
• Opt-out deadline: March 23, 2026
• Final approval hearing: June 5, 2026

When is the Bayhealth Medical Center data breach settlement payout date?

Medical monitoring codes will be emailed to eligible class members 35 days after the court grants final approval of the settlement. Payments will be issued to approved claimants after final approval is granted and claim processing is completed.

Why did this class action settlement happen?

The class action lawsuit was filed after Bayhealth Medical Center discovered a data breach in July 2024 that potentially compromised the personal information of individuals in its patient records. Plaintiffs alleged negligence, negligence per se, breach of implied contract, invasion of privacy, unjust enrichment, and breach of fiduciary duty.

Bayhealth denied the allegations but agreed to settle to avoid the expense and uncertainty of continued litigation.

Sources

1. Class notice
2. Settlement website FAQ page
3. Settlement agreement