NextGen Healthcare $19.38 Million Data Breach Settlement

Individuals who received a notice stating the April 2023 data breach involving NextGen Healthcare compromised their private information may be eligible to submit a claim for up to $7,750 and other benefits from a class action settlement.

NextGen Healthcare Inc. agreed to pay $19,375,000 to resolve a class action lawsuit regarding a data breach announced in April 2023. The lawsuit alleged NextGen failed to properly protect personal information, leading to unauthorized access to patient data.

Who can file a claim?

Class members include those whom NextGen Healthcare identified as individuals whose private information the data breach may have impacted.

How much can class members get?

Class members have the following benefit options:

• Reimbursement for out-of-pocket losses: Class members can claim up to $7,500 for verifiable unreimbursed costs fairly traceable to the data breach. Eligible expenses include costs related to identity theft, credit freeze fees and miscellaneous expenses such as notary, fax, postage, copying and mileage incurred on or after March 29, 2023.
• Reimbursement for lost time: Class members can claim reimbursement for time spent remedying fraud or taking preventative measures at a rate of $25 per hour.
• Class members with documented out-of-pocket losses can claim up to 10 hours of lost time ($250 maximum).
• Class members without documented losses can self-certify up to 5 hours of lost time ($125 maximum).

• Alternative cash payment: Class members who do not submit a claim for out-of-pocket losses or lost time can request an alternative cash payment.
• Non-California residents: Estimated $50 payment
• California residents: Estimated $150 payment (California settlement subclass)

• Identity defense and restoration services: All class members can enroll in three years of Identity Defense Services and access Restoration Services.

The settlement administrator will reduce all cash payments on a pro rata basis if the number of valid claims exceeds the available funds.

How to claim a NextGen Healthcare data breach settlement payment

Class members can file a claim online or download, print and complete the PDF claim form.pdf) and mail it to the settlement administrator. The claim deadline is March 30, 2026.

Settlement administrator's mailing address: NGH Data Breach Litigation, c/o Kroll Settlement Administration LLC, P.O. Box 5324, New York, NY 10150-5391

Proof or documentation required to submit a claim

• For all claims, claimants must provide their contact information.
• For out-of-pocket expense reimbursement and lost time claims, claimants must provide reasonable documentation or certifications showing the losses or time spent are fairly traceable to the data breach. Self-prepared documents alone are not sufficient for documented loss claims.
• For alternate cash payments and identity defense services, claimants do not need to submit documentation of losses. They must attest to their eligibility and submit the claim form. California claimants must attest to residency and provide their California address as of March 29, 2023.

Payout options

• Physical check
• Electronic payment (online claims only)

$19.38 million settlement fund

The $19,375,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $6,458,333
• Attorneys’ expenses: To be determined
• Service awards to class representatives: Up to $2,500 each ($25,000 total)
• Payments and benefits to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: Feb. 12, 2026
• Final approval hearing: Feb. 17, 2026
• Deadline to file a claim: March 30, 2026

When is the NextGen Healthcare data breach settlement payout date?

The settlement administrator will issue payments and provide identity defense enrollment instructions after the court grants final approval of the settlement and resolves any appeals.

Why did this class action settlement happen?

This class action lawsuit alleged the April 2023 data breach compromised NextGen Healthcare systems, allowing unauthorized parties to access files containing sensitive personal information. The plaintiffs claimed NextGen Healthcare failed to adequately safeguard this data.

NextGen Healthcare denies any wrongdoing but agreed to settle to avoid the expense and uncertainties of ongoing litigation.

Sources

1. Class notice.pdf)
2. Claim form.pdf)
3. Settlement website FAQ page