Modernizing Medicine $2.99M Data Breach Settlement

Individuals who received a notice that the July 2025 Modernizing Medicine data breach affected their private information may be eligible to submit a claim for up to $5,000 from a class action settlement. The cybersecurity incident compromised as many as 198,000 current and former patients from multiple podiatry practices.

Modernizing Medicine agreed to pay $2.99 million to settle a class action lawsuit alleging a cyberattack exposed sensitive personal and medical information. The exposed information included full names, addresses, dates of birth, phone numbers, email addresses, Social Security numbers and medical information.

Who can file a claim for a data breach payout?

The class include all individuals residing in the United States who received notice that the July 2025 Modernizing Medicine data breach impacted their private information.

How much can class members get?

Class members can claim one or more types of awards:

• Cash payment A - Documented losses: Class members who experienced documented out-of-pocket losses between July 9, 2025, and Nov. 2, 2026, that are related to the data incident can claim up to $5,000. Eligible expenses include losses from identity theft or fraud, fees for credit reports or credit monitoring, costs to replace IDs and postage for contacting banks.
• Cash payment B - Alternate cash: Class members who do not submit a documented losses claim may claim a one-time estimated $75 cash payment.
• Medical data monitoring: All class members are eligible for two years of CyEx Medical Shield Complete, which includes $1 million in medical identity theft insurance, real-time credit monitoring, dark web scanning, security freeze assistance and identity theft victim support.

How to claim a class action payment

To receive a settlement payment, class members can file a claim online or print and complete the PDF claim form and mail it to the settlement administrator.

Settlement administrator's address: ModMed Data Incident Settlement, c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799-9958

The claim deadline is Nov. 2, 2026.

Required proof and claim information

• To submit an online claim, class members must provide the login ID and PIN from the settlement notice they received.
• To submit a reimbursement for documented losses claim, class members must submit third-party documentation, such as receipts, emails or bank statements, showing their out-of-pocket expenses or losses due to identity theft or fraud. Personal statements or affidavits alone are not sufficient, but class members may include them for clarification.

Payout options

• PayPal
• Venmo
• Zelle
• Virtual prepaid card

$2.99 million settlement fund

The $2,999,750 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $999,917 plus litigation costs
• Medical data monitoring: Cost determined by number of claims filed
• Payments to eligible claimants: Remaining settlement funds

Important dates

• Opt-out deadline: Oct. 19, 2026
• Deadline to file a claim: Nov. 2, 2026
• Final approval hearing: Nov. 17, 2026

When is the Modernizing Medicine payout date?

The settlement administrator will issue payments and medical data monitoring codes approximately 75 days after the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged a cyberattack in July 2025 targeted two Modernizing Medicine servers, exposing files containing sensitive personal and medical information. The plaintiffs claimed the company failed to adequately protect this data.

Modernizing Medicine denies any wrongdoing but agreed to settle to avoid the costs and risks of ongoing litigation.

Sources

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