Palomar Health Medical Group $3.1M Data Breach Settlement

Individuals who received notification that the Palomar Health Medical Group data incident that occurred between April 23, 2024, and May 5, 2024, may have compromised their personal information could qualify to claim up to $5,000 from a class action settlement.

Arch Health Partners Inc. (d/b/a Palomar Health Medical Group) agreed to pay $3.1 million to settle a class action lawsuit alleging it failed to protect private information, including names, addresses, dates of birth, payment card information, health savings account information, medical history and other sensitive information during a cybersecurity incident.

Who can file a claim?

Class members are individuals in the United States whose private information the data breach involving Palomar Medical Group potentially compromised and who received notice of the data breach, which occurred between April 23, 2024, and May 5, 2024.

How much are settlement payouts?

Class members have the following benefit options:

• Reimbursement for documented losses: Class members can claim up to $5,000 for reasonable, documented losses related to the data incident. Examples of eligible losses include credit monitoring, professional fees or other costs directly related to the data incident.
• Alternative cash payment: Individuals who do not have documented losses may claim an estimated $60 as a pro rata cash payment. The settlement administrator may increase or decrease the actual amount depending on the total number of valid claims submitted.
• Credit monitoring: All class members can claim two years of single-bureau credit monitoring, including $1,000,000 in identity fraud insurance and dark web monitoring.

How to claim a class action payout

To receive a settlement payment, class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. They can also request a paper claim form by calling the settlement administrator.

Settlement administrator's mailing address: Palomar Health Data Incident Settlement, P.O. Box 60, East Brunswick, NJ 08816-9998

Settlement administrator's email address: info@phmgdatasettlement.com

Settlement administrator's phone number: 844-440-4203

The claim deadline is Oct. 22, 2026.

What proof or documentation is required to submit a claim?

• Individuals claiming documented losses must provide documentation, such as receipts, phone records or emails, showing actual, unreimbursed expenses related to the data incident.
• Individuals claiming the alternative cash payment do not need to provide documentation, but they must submit a claim form and attest to their eligibility.
• Individuals claiming credit monitoring must submit a claim form to provide an email address to receive the activation code.
• Class members using the online claim form must provide the ID and PIN they received in their settlement notice.

Payout options

• PayPal
• Venmo
• Zelle
• Virtual prepaid card
• Paper check mailed to the address provided on the claim form

$3.1 million settlement fund breakdown

The settlement fund of $3,100,000 includes:

• Settlement administration costs: Amount not specified
• Attorneys' fees: $1,033,333
• Attorneys' expenses: Amount not specified
• Service awards to class representatives: $2,500 ($12,500 total)
• Payments to eligible class members: Remainder of the settlement fund

Important dates

• Deadline to opt out: Oct. 7, 2026
• Deadline to file a claim: Oct. 22, 2026
• Final approval hearing: Nov. 6, 2026

When is the Palomar Health Medical Group data breach payout date?

The settlement administrator will distribute payments to eligible class members after the court resolves any appeals and grants final approval to of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged Palomar Health Medical Group failed to adequately protect private information, resulting in a data breach during which unauthorized parties accessed sensitive sensitive information, including Social Security numbers, birthdates and financial and medical information.

The defendant denied all allegations but agreed to settle to avoid the risks and costs of continued litigation.

Sources

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