East Tennessee Children's Hospital Association, Inc. $1,550,000 Settlement

In a recent development, East Tennessee Children's Hospital Association, Inc. (ETCH) has agreed to a settlement amount of $1,550,000.00. This settlement is in response to a lawsuit filed due to a data security incident that occurred in March 2022, potentially compromising the highly sensitive personal information of hundreds of thousands of current and former ETCH patients. The lawsuit alleges that ETCH collected and stored patient information without proper encryption or data security practices, a claim that ETCH denies.

What Does the $1,550,000 Settlement Mean?

The settlement establishes a fund to provide compensation to those affected by the data breach. It aims to reimburse the victims for their losses and provide them with credit monitoring services to prevent further damage. This settlement is not an admission of guilt by ETCH but rather a resolution to the lawsuit to avoid further litigation costs.

The settlement fund will be used to pay out claims to those who suffered out-of-pocket losses or lost time due to the data breach. It will also cover extraordinary monetary losses resulting from fraud or identity theft that can be traced back to the data breach. A portion of the fund will also be used to provide free credit monitoring services for three years and Pango's Identity Defense Minor Service for ten years for minor subclass members.

What Are the Important Dates to Remember?

The final approval date for the settlement is set for December 12, 2023. This is the date when the court will determine whether the settlement is fair, reasonable, and adequate.

• Deadline to File a Claim: The deadline for filing a claim is February 17, 2024. It's important to submit your claim before this date to be eligible for the settlement benefits.

Who Are the Beneficiaries of the Settlement?

The beneficiaries, or class members, of the settlement are all persons whose private information was compromised in the data breach and were sent a notice of the data breach from ETCH. This includes current and former patients of ETCH. There is also a subclass of minor beneficiaries who will automatically receive a code to activate the Pango's Identity Defense Minor Service.

Exclusions from the class members include ETCH and its officers and directors, those who request exclusion from the settlement, the judge assigned to evaluate the fairness of the settlement, and any person found guilty under criminal law related to the data breach.

What Can Class Members Claim?

Class members can claim up to $500.00 for out-of-pocket losses and/or lost time suffered as a result of the data breach. They can also claim up to $5,000.00 for proven extraordinary monetary loss resulting from fraud or identity theft fairly traceable to the data breach. Additionally, they are offered three years of free credit monitoring services. Minor subclass members are provided with ten years of Pango's Identity Defense Minor Service.

What Proof Is Required to Claim the Reward?

Yes, proof is required to claim the reward. The required proof includes:

• For out-of-pocket losses: Documentation supporting the claims, such as receipts or other non-self-prepared documentation.
• For extraordinary losses: Documentation demonstrating actual, documented, and unreimbursed monetary loss fairly traceable to the data breach.

Why Is There a Class Action Settlement?

The class action settlement is a resolution to the lawsuit filed against ETCH alleging improper data security practices. The settlement helps avoid the costs and risks associated with continued litigation. It also provides immediate benefits to those affected by the data breach. The next step for those eligible is to submit a claim form, either online or by mail, along with the required proof to the Claims Administrator.