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Individuals who lived at Laguna Honda Hospital between April 14, 2022, and Aug. 16, 2023, or who resided there after March 2017 and received a written privacy violation notice may be eligible to receive a cash payment from a class action settlement.
The City and County of San Francisco agreed to pay $5.75 million to settle a class action lawsuit alleging Laguna Honda Hospital engaged in a pattern and practice of not complying with nursing home regulations meant to protect patients’ rights. The lawsuit claims those practices harmed patients and contributed to the decertification of the hospital and termination of its Medicare and Medicaid provider agreements. It also claims the hospital committed other violations of certain patients’ rights to privacy and confidentiality when handling their personal and medical information.
Who are the class members?
There are two classes. Individuals may be a member of one or both classes:
- Patients’ rights class: All patients at Laguna Honda Hospital between April 14, 2022, and Aug. 16, 2023
- Confidentiality class: All patients at LHH from March 23, 2017, and Feb. 17, 2026, or their responsible party, who received written notice from the San Francisco Department of Public Health that the hospital improperly shared their private medical and health information with unauthorized parties
How much can class members get?
The amount eligible class members can receive from the settlement depends on which class they belong to and, for some, how long they lived at Laguna Honda Hospital during the relevant period. Individuals who are a member of both classes will receive both payments.
- Confidentiality class: Each member will receive a flat payment of $750.
- Patients’ rights class: Each member will receive a base payment of $1,000. These class members will also receive an additional amount based on the number of days they resided at Laguna Honda Hospital between April 14, 2022, and Aug. 16, 2023.
How to claim a settlement payout
Eligible class members do not need to file a claim form, but they must choose how they want to receive their settlement payment using the online distribution election form or by completing the distribution election postcard they received in the mail and returning it to the settlement administrator.
Settlement administrator's mailing address: Tommy O. Johnson, et. al. v. City and County of San Francisco, et al., c/o CPT Group Inc., P.O. Box 19504, Irvine, CA 92623
Settlement administrator's email address: LHHSettlement@cptgroup.com
Settlement administrator's phone number: 888-261-1713
Required documentation
Class members using the online distribution election form must provide the CPT ID and passcode they received in the class notice.
Payout options
Class members have two options for receiving their payment:
- Option 1: They can receive a direct cash payment. Class members are responsible for managing these funds, including any impact on Supplemental Security Income or Medicaid eligibility. They must report any lump-sum payment to the Social Security Administration and their local Medi-Cal office by the tenth day of the month after they receive it. SSI asset limits are $2,000 a month for individuals and $3,000 a month for couples.
- Option 2: They can receive the award in a pooled special needs trust, which can help preserve eligibility for SSI or Medicaid. CPT Institute manages the trust and can use the funds for a wide range of qualified expenses, such as medical care, support services and personal items. The manager generally pays funds directly to vendors and not to class members.
$5.75 million settlement fund
The $5,750,000 settlement fund includes:
- Settlement administration costs: Amount not specified
- Attorneys' fees: Up to $1,437,500
- Attorneys' expenses: Up to $150,000
- Service awards to class representatives: Up to $5,000 ($10,000 total)
- Payments to eligible class members: Remaining settlement funds
Important dates
- Deadline to opt out: Nov. 10, 2026
- Deadline to select payment: Nov. 10, 2026
- Fairness hearing: Jan. 29, 2027
When is the Laguna Honda Hospital settlement payout date?
The settlement administrator will distribute payments after the court resolves any appeals and grants final approval of the settlement.
Why is there a class action settlement?
The settlement resolves a lawsuit alleging the City and County of San Francisco failed to comply with nursing home regulations at Laguna Honda Hospital. The class action claimed the hospital harmed residents, leading to the loss of Medicare and Medicaid provider agreements. It also alleged violations of patient privacy laws, including the improper disclosure of medical information.
The city and county denied any wrongdoing but agreed to settle to avoid the cost and risk of continued litigation.
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