Capital Health Systems $4.5M Data Breach Settlement

Patients, former patients, guarantors or employees whose private information the Capital Health Systems Inc. data breach that occurred between Nov. 11 and Nov. 26, 2023, potentially compromised may be eligible to claim up to $5,000 plus other benefit from a class action settlement.

Capital Health Systems Inc. agreed to pay $4.5 million to settle a class action lawsuit alleging an unauthorized third party potentially accessed files containing sensitive personal information. The breach affected individuals whose data the company’s IT systems stored during the incident. The affected information could include names, addresses, dates of birth, Social Security numbers, email addresses, telephone numbers, clinical information and other data.

Who can file a claim?

The settlement class includes all individuals whose private information the Capital Health Systems data breach that occurred between Nov. 11 and Nov. 26, 2023, potentially compromised. This includes patients, former patients, guarantors and employees of Capital Health Systems Inc. whose private information Capital Health's IT systems stored during the breach period.

If an individual received a notice about this settlement, Capital Health's records identified them as a potential class member.

How much can class members get?

Class members can claim compensation through several options, depending on their circumstances and the documentation they can provide:

• Cash Payment A – Documented losses: Up to $5,000 per class member for documented, unreimbursed losses related to the data breach. Documentation is required for this option.
• Cash Payment B – Alternative cash payment: An estimated $100 flat payment for those who do not provide documentation. No documentation is required for this option.
• Credit monitoring: Three years of free credit monitoring (valued at $90 per year) available to all class members in addition to either cash payment option. No documentation is required for this option.

The settlement administrator may adjust the actual amount each class member receives on a pro rata basis depending on the total number and value of valid claims. This means that if the total amount of valid claims exceeds the net settlement fund (after deductions for administration, attorneys’ fees and service awards), it will reduce individual awards proportionally. Conversely, if class members make fewer claims, the payout per claimant could increase.

How to claim a settlement payout

Class members can submit the online claim form or download, print, complete and mail the PDF claim form to the settlement administrator.

Settlement administrator's mailing address: Capital Health Data Breach Litigation Settlement Administrator, PO Box 4008, Portland, OR 97208-4008

What proof or documentation is necessary to submit a claim?

• Online claimants must provide the unique ID and PIN located on the settlement notice they received by mail. Those submitting a paper claim form only need to provide the unique ID. Individuals who did not receive a unique ID and PIN may fill out and complete a paper claim form and mail it to the settlement administrator.
• For Cash Payment A (documented losses), claimants must provide reasonable documentation of losses or expenses related to the data breach. Acceptable documents include receipts, account statements, notices and other third-party records. Self-prepared documents, like handwritten receipts or affidavits, are not sufficient on their own.
• For Cash Payment B (alternative cash payment) and credit monitoring, claimants do not need to provide documentation. They must select the appropriate option on the claim form.

Payout options

• Check mailed to the address provided
• Credit monitoring activation code (sent by email or mail)

$4.5 million settlement fund breakdown

The $4,500,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $1,500,000
• Attorneys' expenses: To be determined
• Service awards to class representatives: Up to $4,000 each ($16,000 total)
• Payments to eligible class members: Remainder of the fund

Important dates

• Deadline to opt out: March 9, 2026
• Deadline to file a claim: April 6, 2026
• Final approval hearing: July 14, 2026

When is the Capital Health data breach settlement payout date?

The settlement administrator will distribute payments after the court resolves all appeals and grants final approval to the settlement.

Why is there a class action settlement?

This class action lawsuit alleged an authorized third party may have accessed private information stored in Capital Health Systems Inc.’s IT systems during a cybersecurity incident that occurred between Nov. 11 and Nov. 26, 2023. The plaintiffs alleged the company failed to adequately protect sensitive data, leading to potential identity theft, fraud and other harms. The lawsuit included claims for negligence, breach of contract, breach of fiduciary duty, unjust enrichment and violation of the New Jersey Consumer Fraud Act.

Capital Health Systems Inc. denied any wrongdoing but agreed to settle to avoid the risk, cost and uncertainty of continued litigation.

Sources

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