Independent Living Systems $14M Data Breach Settlement

Consumers who received a notice stating an Independent Living Systems LLC data breach may have compromised their personal information in June or July 2022 or who have a good faith reason to believe the breach affected their sensitive information may qualify to claim up to $5,000 or a cash payment from a class action settlement.

Independent Living Systems LLC agreed to pay $14 million to settle a class action lawsuit alleging it failed to adequately protect sensitive personal and health information, which a threat actor potentially accessed during a data security incident.

Who can file an Independent Living Systems claim?

Class members must meet one of the following criteria:

• They reside in the United States and received a notice from Independent Living Systems LLC about the June/July 2022 data security incident stating their sensitive information may have been compromised OR
• They have a good faith reason to believe the incident potentially compromised their sensitive information.

Sensitive information may include:

• Names
• Social Security or taxpayer identification numbers
• Medical information
• Health insurance information

There are approximately 3.9 million class members. Class members who were California residents on June 30, 2022, may be eligible for a higher cash payment.

How much is the data breach payout?

• Out-of-pocket loss reimbursement: Up to $5,000 for documented, unreimbursed expenses resulting from the data breach. Eligible expenses include:
• Costs for credit monitoring or credit reports
• Late fees, overdraft fees, returned check fees, or card cancellation or replacement fees
• Fees from delayed transactions due to fraud or card replacement
• Unauthorized charges not reimbursed by a bank or card issuer
• Transportation expenses to address fraudulent charges or replace payment cards
• Costs for credit freezes
• Other reasonable expenses directly related to the data breach that were not reimbursed

• Cash payment: After the settlement administrator pays out-of-pocket claims, it will distribute the remaining settlement funds as cash payments. There are two categories:
• California cash payment: Class members who lived in California on June 30, 2022, and submit an approved claim will receive two pro rata shares of the net settlement fund.
• Pro rata cash payment: Class members who did not live in California at that time will receive one pro rata share of the net settlement fund.

The actual amount of the cash payment will depend on the number of valid claims and the net settlement fund after deducting out-of-pocket loss reimbursements, attorneys’ fees and expenses, and administration costs.

How to claim a settlement payment

Class members can file a claim online or download, print, complete and mail the PDF claim form to the settlement administrator. The claim deadline is Nov. 4, 2025.

Settlement administrator's contact information: ILS Settlement Administrator c/o Kroll Settlement Administration LLC, P.O. Box 5324 New York, NY 10150-5324

What proof and documentation is required to submit a claim?

• To file an online claim, class members must provide the class member ID located on their settlement notice.
• For out-of-pocket loss claims, class members must provide third-party documentation, such as receipts, bank statements or other records. Self-prepared documents alone are not sufficient.
• For cash payment claims, class members must attest to their residency status as of June 30, 2022, and confirm they received a notice or have a good faith reason to believe they were affected.

Payout options

• Electronic payment (online claims only)
• Paper check

$14 million settlement fund breakdown

The $14,000,000 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $4,666,666.67
• Attorneys’ expenses: To be determined
• Service awards to class representatives: To be determined
• Payments to class members: The remainder of the fund

Important dates

• Deadline to opt out: Oct. 6, 2025
• Deadline to file a claim: Nov. 4, 2025
• Final approval hearing: Nov. 17, 2025

When is the Independent Living Systems data breach settlement payout date?

The settlement administrator will distribute payments approximately 91 days after the court grants final approval and resolves any appeals.

Why is there a class action settlement?

The class action lawsuit alleges Independent Living Systems LLC failed to adequately protect sensitive personal and health information, resulting in a data security incident in June and July 2022. The plaintiffs claimed the company was negligent, breached contracts and violated consumer protection laws.

Independent Living Systems denies any wrongdoing but agreed to settle to avoid the uncertainty and expense of litigation.

Sources

1. Class notice
2. Settlement agreement
3. Claim form
4. Settlement FAQ