HealthEC $5.48M Data Breach Class Action Settlement

Patients whose personal or health information was compromised in the December 2023 HealthEC data breach may be eligible to claim a cash payment and/or credit monitoring from a class action settlement.

HealthEC LLC, along with Community Health Care Systems Inc., Corewell Health, MD Valuecare LLC and Oakwood Accountable Care Organization LLC, agreed to pay $5,482,500 to settle a class action lawsuit alleging it failed to adequately protect sensitive consumer data, resulting in a data breach that impacted approximately 1.52 million individuals.

Who can file a HealthEC claim?

Class members must meet the following criteria:

• They were patients of HealthEC LLC, Community Health Care Systems Inc., Corewell Health, MD Valuecare LLC and Oakwood Accountable Care Organization LLC whose personal and/or protected health information was compromised in the data breach announced in December 2023.
• They received a notice by email or mail about the settlement.

The class includes all individuals whose information was accessed in the breach regardless of whether they experienced actual identity theft or fraud.

There are two main groups within the class:

• General class members: All individuals whose information was compromised in the breach
• California subclass: Individuals who were California residents as of July 14, 2023, and whose information was compromised

How much can class members get?

• Out-of-pocket losses: Class members who spent money dealing with fraud or identity theft related to the data breach can submit a claim for reimbursement. Eligible expenses include unreimbursed costs due to identity theft or fraud, costs for placing or removing a credit freeze and miscellaneous expenses like notary, postage or credit monitoring products.
• Lost time: Class members who spent time remedying fraud or taking preventative measures can claim up to 10 hours of time at $25 per hour (if they also have qualifying out-of-pocket losses) or up to four hours of time at $25 per hour (if they do not have qualifying out-of-pocket losses).
• Alternative cash payment: Class members who do not claim out-of-pocket losses or lost time can request an alternative cash payment. Non-California residents can claim $25, while California residents as of July 14, 2023, can claim $50.
• Medical Shield Complete: All class members are eligible to enroll in at least three years of Medical Shield Complete at no cost. This service includes dark web monitoring, medical record and credit monitoring, security freeze capability and a $1 million identity theft insurance policy.

If the total amount claimed by class members exceeds the settlement fund, payments will be reduced on a pro rata basis. If there are leftover funds after all claims are paid, payments to class members may be increased on a pro rata basis.

How to claim a data breach payment or benefit

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

Settlement administrator's mailing address: HealthEC Data Breach Litigation Settlement Administrator, P.O. Box 301134 Los Angeles, CA 90030-1134

Is proof or documentation required to submit a claim?

• To file an online claim, class members must provide the claim ID and PIN located on their postcard notice.
• To complete the PDF claim form, class members must either provide the claim ID and PIN or the email address associated with their HealthEC account.
• For out-of-pocket loss claims, class members must provide documentation, such as credit card or bank statements, receipts, invoices or other evidence, showing the expenses were related to the data breach
• For lost time claims, class members must describe the actions they took and the time spent.
• For alternative cash payments or credit monitoring, class members only need to select the appropriate option on the claim form.

Payout options

• Electronic payment (online claims only)
• Paper check

$5.48 million settlement fund breakdown

The $5,480,000 settlement fund covers:

• Settlement administration costs: $333,250
• Attorneys' fees: Up to $1,863,050
• Attorneys' expenses: To be determined
• Service awards to class representatives: Up to $2,500 each
• Medical Shield Complete services: To be determined
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to file a claim: Nov. 18, 2025
• Exclusion request deadline: Nov. 18, 2025
• Final approval hearing: Jan. 18, 2026

When is the HealthEC settlement payout date?

Payments and benefits will be distributed after the court grants final approval of the settlement and any appeals are resolved.

Why was there a class action settlement?

The class action lawsuit alleged HealthEC and its codefendants failed to adequately protect consumer data, resulting in a data breach that exposed the personal and health information of more than 1.5 million patients. The plaintiffs claimed the defendants did not take sufficient steps to safeguard sensitive information.

The defendants deny any wrongdoing but agreed to settle to avoid the costs and uncertainties of further litigation and trial.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ
4. PDF claim form