Chattanooga Heart Institute $3.75M Data Breach Settlement

Current and former patients and employees whose private information the cybersecurity incident at Chattanooga Heart Institute may have compromised could be eligible to submit a claim for up to $5,500, credit monitoring and a potential pro rata payment from a class action settlement. The data breach impacted approximately 460,000 individuals.

Memorial Heart Institute LLC, d/b/a Chattanooga Heart Institute, agreed to pay $3.75 million to settle a class action lawsuit alleging it failed to protect sensitive personal and medical information information during a data breach that occurred between March 8 and March 16, 2023.

Who can file a claim for a data breach payout?

Class members are living individuals whose private information the Chattanooga Heart Institute data breach that occurred between March 8 and March 16, 2023, may have compromised.

The class also includes a subclass of individuals whose Social Security numbers the breach accessed or exposed. The settlement allots $2 million of the fund for this class.

How much will settlement payments be?

Class members have the following benefit options:

• Reimbursement for documented losses: Class members can claim up to $5,500 in documented losses that are fairly traceable to the data breach. This includes costs for credit monitoring or identity theft protection purchased after March 16, 2023, unreimbursed monetary losses due to identity theft, fraud, falsified tax returns or other misuse of information and miscellaneous expenses, such as postage for contacting financial institutions.
• Credit monitoring: All class members can elect to receive two years of medical monitoring, valued at approximately $120, which includes dark-web and credit monitoring.
• Cash payment for SSN class: Class members in the SSN class can submit a claim to receive a pro rata cash payment from the $2 million SSN class net settlement fund. The settlement administrator will determine the final payment amount by the number of claims filed.

How to claim a class action rebate

To receive a settlement payment, class members can file a claim online or print a total class PDF claim form_v5_4.1.26.pdf) or an SSN subclass PDF claim form to complete and mail to the settlement administrator.

Settlement administrator's mailing address: Settlement Administrator – 83322, c/o Kroll Settlement Administration LLC, PO Box 5324, New York, NY 10150-5324

The claim deadline is July 13, 2026.

Required proof and claim information

• To submit a claim online or by mail, class members must provide the class member ID from the settlement notice they received.
• To submit a documented losses claim, class members must provide supporting documentation, which may include receipts, invoices for services, bank or credit card statements showing unreimbursed fees or fraudulent charges, police reports and other proof of identity theft or fraud.

Payout options

• Electronic payment
• Paper check (only option for mailed claims)

$3.75 million data breach settlement fund

The settlement splits the $3,750,000 settlement fund between the total class and SSN subclass:

• $2 million for the SSN class
• $1.75 million for the total class

Settlement fund breakdown:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $1,250,000
• Attorneys’ expenses: Up to $50,000
• Service awards to class representatives: $4,500 each
• Payments to approved claimants: Remaining settlement funds

Important dates

• Final approval hearing: May 28, 2026
• Opt-out deadline: June 12, 2026
• Deadline to file a claim: July 13, 2026

When is the Chattanooga Heart Institute data breach payout date?

The settlement administrator will issue payments and credit monitoring information to approved claimants approximately 105 days after the court grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged a data breach at Chattanooga Heart Institute exposed sensitive personal and medical information. The plaintiffs claimed the company failed to adequately protect this data.

The defendant denies the allegations but agreed to settle to avoid the expense and risk of further litigation.

Sources

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