Choice Health $500,000 Settlement: Claim Your Data Breach Compensation

In May 2022, Choice Health Insurance, LLC experienced a data breach, leading to unauthorized access to sensitive information belonging to numerous individuals. A class action lawsuit ensued, and a settlement has been reached to compensate those affected by this incident. If you were notified by Choice Health about this breach, you might be entitled to benefits from the settlement. This article will guide you through the details of the settlement, including eligibility, potential compensation, and how to file a claim.

Who Benefits?

Individuals who received a notice from Choice Health regarding the Data Incident that occurred in May 2022 are eligible for compensation under this settlement.

How much can I get?

Eligible Class Members can claim up to $4,000 for documented out-of-pocket losses directly related to the Data Incident, plus a separate cash payment of approximately $75, subject to adjustments based on the total claims submitted.

Important Dates

• Fairness Hearing: The Court will hold a Final Approval Hearing on January 30, 2024, to determine the fairness of the settlement.
• Deadline to File a Claim: Class Members must submit their claim forms by January 9, 2024.
• Exclusion Deadline: To exclude yourself from the settlement, your request must have been postmarked by December 26, 2023.

Who Are the Class Members?

Class Members include all individuals who were sent a notice by Choice Health about the Data Incident in May 2022. This group is further divided based on whether they have incurred out-of-pocket losses due to the Data Incident.

• Individuals with documented out-of-pocket losses
• Individuals without documented out-of-pocket losses but who are still eligible for the cash payment

Class Member exclusions apply to certain individuals, such as those who opt out of the settlement, the presiding judge and court staff, Choice Health's officers and directors, and anyone criminally implicated in the Data Incident.

Understanding the Settlement Awards

Class Members can claim two types of awards: reimbursement for out-of-pocket losses and a cash payment. The reimbursement covers actual documented losses or expenses up to $4,000, while the cash payment is approximately $75, subject to adjustment based on the remaining funds after other settlement costs.

• Reimbursement for Out-of-Pocket Losses: This includes costs incurred as a result of identity theft, falsified tax returns, or other misuse of personal information.
• Separate Cash Payment: All Class Members are eligible for this payment, regardless of whether they suffered out-of-pocket losses.

The Breach and Its Consequences

The settlement addresses the unauthorized access to private information, including Social Security numbers and health insurance information, which occurred during the Data Incident at Choice Health.

• Unauthorized access to Private Information
• Compromise of sensitive data

Is Proof Required to Claim the Reward?

Yes, proof is required to claim the reward. Claimants must provide documentation supporting their out-of-pocket losses, such as receipts or other records, to the Claims Administrator.

How to Claim Your Award

To claim your award, submit a valid claim form by the January 9, 2024 deadline. Visit the official claim submission page to fill out and submit your claim form. Have your Class Member ID ready, which is provided in the notice from Choice Health.

For assistance or more information, contact the Settlement Administrator directly.

Analyzing the Settlement Fund

The total settlement amount that Defendant may be required to pay is capped at $500,000. This includes all reimbursements, cash payments, attorneys' fees, and other costs associated with the settlement.

The Reason for the Settlement

The settlement resolves allegations that Choice Health failed to implement reasonable security measures to protect private information. By agreeing to the settlement, Choice Health does not admit liability but seeks to avoid the uncertainties and expenses associated with ongoing litigation. The settlement allows affected individuals to claim compensation and requires Choice Health to enhance its data security practices.