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Current and former patients who received a written notice from Drug and Alcohol Treatment Services, also known as DATS, informing them a data breach that occurred between Oct. 5, 2024 and Oct. 6, 2024, may have compromised their protected health information could qualify to submit a claim for up to $5,000 and medical monitoring from a class action settlement.
DATS agreed to pay $549,000 to settle a class action lawsuit alleging it failed to protect sensitive patient data, which resulted in unauthorized access to files containing protected health information. The cybersecurity incident impacted approximately 22,000 individuals.
Who can file a claim for a data breach settlement payout?
Class members are individuals who received a written notice from DATS on or around May 2, 2025, stating the data breach that occurred between Oct. 5, 2024 and Oct. 6, 2024, potentially compromised their protected health information.
How much are settlement payments?
Class members have the following benefit options:
- Out-of-pocket expense reimbursement: Class members can claim up to $5,000 for documented out-of-pocket expenses. This includes unreimbursed bank fees, postage for contacting financial institutions and fees for credit reports, credit monitoring or identity theft insurance purchased between October 2024 and Sept. 24, 2026.
- Alternate flat cash payment: Class members who do not submit an out-of-pocket expense claim can submit a claim to receive a flat pro rata cash payment from the remaining net settlement fund after the settlement administrator pays all other claims. The administrator will determine the final payment amount by the total number of claims filed.
- Medical monitoring: All class members can elect to receive one year of CyEx Medical Shield medical identity theft protection, regardless of whether they previously received credit monitoring from DATS or another provider.
- Class members who already have credit monitoring can postpone activation for up to 12 months.
How to claim a class action rebate
To claim a settlement payment, class members can file a claim online or print the PDF claim form to complete and mail to the settlement administrator.
Settlement administrator's mailing address: DATS Settlement, c/o RG/2 Claims Administration LLC, P.O. Box 59479, Philadelphia, PA 19102-9479
The claim form is Sept. 24, 2026.
Required proof and claim information
- All class members must provide the class member ID from the settlement notice they received. Online claimants must also provide the PIN from the same notice.
- Out-of-pocket expense claims require supporting documentation, which may include such receipts, invoices or bank or credit card statements showing unreimbursed fees.
Payout options
- Electronic transfer
- Paper check mailed to the address provided (only option for mailed claims)
Settlement fund breakdown
The $549,000 settlement fund will include:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $183,000 plus litigation expenses
- Service awards to class representatives: Up to $2,000 each
- Medical monitoring: Cost determined by number of enrollments
- Payments to approved claimants: Remaining settlement funds
Important dates
- Deadline to opt out: Aug. 25, 2026
- Deadline to file a claim: Sept. 24, 2026
- Final approval hearing: Nov. 24, 2026
When is the DATS data breach settlement payout date?
The settlement administrator will issue payments to approved claimants approximately 60 days after the court grants final approval of the settlement.
Why did this class action settlement happen?
This class action lawsuit alleged unauthorized users accessed DATS' systems and exposed sensitive patient information, including names, addresses, Social Security numbers, health insurance details and medical records. The plaintiffs claimed DATS failed to adequately protect this data, resulting in the cyberattack.
DATS denies the allegations but agreed to settle to avoid the expense and uncertainty of further litigation.
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