Veradigm $8.75 Million Data Breach Class Action Settlement

Consumers who received a notice stating the Veradigm data breach could have impacted their private information may be eligible to claim up to $5,000 from a class action settlement.

Veradigm Inc., a health care technology company, agreed to pay $8,750,000 to settle a class action lawsuit alleging it failed to adequately protect sensitive patient information, resulting in a data breach in December 2024. The breach exposed the personal and health data of more than 2 million individuals.

The potentially compromised information includes:

• Names
• Contact details
• Dates of birth
• Health record data
• Insurance claim data
• Payment information
• Social Security numbers
• Driver’s license numbers

Not every person had all types of information exposed.

Who can file a claim?

Class members must be a living individual residing in the United States who received a notice indicating the Veradigm data incident may have impacted their private information.

The settlement identifies specific health care providers whose patients may be included in the class:

• Virginia Ear, Nose & Throat Associates
• Carolina Ear Nose & Throat Allergy Center
• Neighborhood Health Center of Western New York
• Cabarrus Eye Center
• Family Medical Group of Texarkana
• La Red Health Center
• Urology Associates of Mobile
• Peachtree Neurological Clinic
• North Buncombe Family Medicine
• Thomaston Medical Clinic, PC
• Henrietta Johnson Medical Center – Wilmington
• Catholic Health Initiatives/CommonSpirit Health (including MercyOne)
• Nystrom & Associates
• Genesis Healthcare Inc. (including Unio Specialty Care)
• Delaware Healthnet
• Corona-Temecula Orthopaedic Associates Medical Group

How much is the Veradigm payout?

Eligible class members can claim one or more of the following benefits, depending on their circumstances and preferences:

• Cash Payment A – Documented losses: Up to $5,000 for documented losses related to the data breach. To receive this payment, class members must provide reasonable documentation that demonstrates the data breach most likely caused the losses.
• Cash Payment B – Alternate cash: An estimated $50 cash payment as an alternative to the documented loss payment. No documentation is required for this option.
• Medical data monitoring: Two years of CyEx’s Medical Data Monitoring product, which includes real-time credit monitoring, dark web scanning, security freezing assistance, victim support, $1,000,000 in identity theft insurance (no deductible) and access to fraud resolution agents.

All cash payments are subject to pro rata adjustment based on the total number of valid claims and the net settlement fund. This means the actual payment amount could be higher or lower depending on how many people submit valid claims and how much remains in the settlement fund after fees and costs.

How to claim 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. The claim deadline is March 3, 2026.

Settlement administrator's mailing address: Goodrum et al. v. Veradigm Inc., c/o Kroll Settlement Administration LLC, PO Box 225391, New York, NY 10150-5391

Required proof and documentation

• All class members must provide the class member ID located on the settlement notice they received.
• To claim the documented loss payment, class members must submit reasonable documentation showing the data incident most likely caused their losses. Examples include receipts, bills or third-party records. Personal certifications or affidavits alone are not sufficient but may be included for context.
• For the alternative cash payment or medical data monitoring, class members need only select the appropriate box on the claim form.

Payout options

• Electronic transfer (online claims only)
• Paper check

$8.75 million settlement fund breakdown

The $8,750,000 settlement fund covers:

• Settlement administration costs: Amount not specified
• Attorneys’ fees: Up to $2,916,667
• Attorneys’ costs: Amount not specified
• Service awards to class representatives: Up to $2,500 each
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to opt out: February 17, 2026
• Deadline to file a claim: March 3, 2026
• Final approval hearing: March 18, 2026

When is the Veradigm settlement payout date?

The settlement administrator will distribute payments no later than 75 days after the court grants final approval or 30 days after the settlement's effective date, whichever is later.

Why is there a class action settlement?

The class action lawsuit claims that Veradigm, an Illinois-based health care technology company, failed to safeguard sensitive patient data, which led to a cyberattack in December 2024. The breach affected more than 2 million patients and exposed various types of personal and health information.

Veradigm denies any wrongdoing, but both sides agreed to settle to avoid the costs and risks of continued litigation and to provide compensation to those impacted.

Sources

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