Watson Clinic $10M Data Breach Class Action Settlement

Current and former patients who previously received a letter from Watson Clinic notifying them of a data incident discovered in February 2024 may qualify to receive a cash payment from a class action settlement.

Watson Clinic LLP agreed to pay $10 million to resolve a class action lawsuit arising from a data security incident. The lawsuit alleged that Watson Clinic failed to adequately protect patient information, leading to unauthorized access and, in some cases, publication of sensitive data and medical images.

Who is eligible for a data breach payout?

Class members are U.S. residents who received a notice letter from Watson Clinic informing them that the February 2024 data incident impacted their personal and protected health information.

How much is the class action settlement payment?

Class members can submit a claim for one or more of the following benefits:

• Ordinary out-of-pocket losses: All class members may submit a claim for up to $500 in documented unreimbursed expenses related to the data breach. Eligible expenses include costs for freezing/unfreezing or accessing credit reports, credit monitoring or identity theft insurance fees, notary, fax, postage or mileage.
• Extraordinary losses and attested time: All class members can claim up to $6,500 in documented extraordinary losses traceable to the breach. This includes losses or expenses due to identity theft, fraud, falsified tax returns and other misuse of personal data traceable to the data breach.
• Class members may also claim up to five hours of time spent remedying issues related to the data incident at $25 per hour for a maximum $125.

• Residual cash payment: All class members can also elect to receive a residual cash payment of up to $50. The settlement administrator will determine the final payment amount using the total number of valid claims files and remaining settlement funds.

The following benefit does not require a claim form:

• Digital image cash payments: Class members whose digital images appeared on the dark web will automatically receive a payment based on the content of the image. Each qualifying person can only receive one digital image cash payment, based on the highest applicable category.
• Full face and exposed sensitive areas: $75,000
• Partial face and exposed sensitive areas: $40,000
• No face and exposed sensitive areas: $10,000
• Full face and partial clothing of sensitive areas: $10,000
• Partial face and partial clothing of sensitive areas: $7,500
• No face and partial clothing of sensitive areas: $5,000
• Nonsensitive images: $100

How to claim a data breach class action rebate

To receive a settlement payment (other than digital image cash payments), class members must submit a claim form by the Feb. 5, 2026, deadline. They can file a claim online or download and print the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: Watson Clinic Data Incident, c/o Kroll Settlement Administration, PO Box 225391 New York, NY 10150-5391

Required proof and claim information

• To file a claim, class members must provide the class member ID from their official settlement notice.
• To file an ordinary out-of-pocket loss claim, class members must provide documentation, such as receipts or invoices, showing the expense and that it is fairly traceable to the data incident.
• To file an extraordinary loss claim, class members must provide supporting documentation, which may include receipts, invoices for fees, bank or credit card statements showing fraudulent unreimbursed charges, police reports, proof of falsified tax returns or other proof showing the loss plus a description of the actions taken.
• To file an attested time claim, class members must provide a brief description of the actions taken.

Payout options

• PayPal
• Zelle
• Venmo
• Paper check mailed to address provided (only option for mailed-in claims)

The settlement administrator will mail digital image cash payments via paper check to the last known address on file.

$10 million Watson Clinic settlement fund

The $10,000,000 settlement will include:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $3,300,000
• Attorneys' expenses: Up to $100,000
• Service awards to class representatives: Up to $2,500 each
• Payments to eligible class members: Remaining settlement funds

Important dates

• Deadline to opt out: Jan. 6, 2026
• Deadline to file a claim: Feb. 5, 2026
• Final approval hearing: March 9, 2026

When is the Watson Clinic data breach settlement payout date?

The settlement administrator will issue payments to eligible class members approximately 90 days after the court grants final approval of the settlement or 30 days after the administrator completes claim processing, whichever is later.

Why is there a class action settlement?

The class action lawsuit alleged an unauthorized third party accessed and, in some cases, published the sensitive patient information and images of Watson Clinic patients. The plaintiffs claimed Watson Clinic failed to protect this information, leading to claims of negligence, breach of contract and violations of consumer protection laws.

Watson Clinic denies all allegations but agreed to settle to avoid the expense and uncertainty of further litigation.

Sources

1. Official settlement notice
2. Settlement website FAQ page
3. Settlement claim form