A proposed class action settlement worth $6.49 million has been reached following a significant data breach involving CorrectCare Integrated Health, LLC. The breach, which compromised personal information of individuals whose medical claims were processed by the company, was identified on July 6, 2022, and publicly disclosed on November 28, 2022. This settlement is designed to compensate affected individuals, providing them with an opportunity to claim up to $10,000 for documented losses.
Details of the Data Breach
CorrectCare Integrated Health, LLC, a company specializing in processing medical claims, discovered a data breach on or around July 6, 2022. The breach involved unauthorized access to a server containing sensitive personal information. This information may have included names, addresses, Social Security numbers, medical information, and other personal details of individuals who had their medical claims processed by CorrectCare.
Despite denying any wrongdoing or liability, CorrectCare has agreed to settle the litigation on a class-wide basis. This settlement aims to compensate those affected by the breach, offering various forms of reimbursement for losses incurred.
Compensation Options
Individuals who received notice of the settlement are eligible to submit a claim. The settlement offers three main compensation options:
- Reimbursement for Out-of-Pocket Losses: Eligible individuals can claim reimbursement for expenses directly related to the data breach. This includes coverage for bank fees, communication charges, travel expenses, professional fees, credit expenses, and damages from fraud. These expenses must have been incurred between the date of the data breach and August 27, 2024.
- Alternative Cash Payment: Instead of reimbursement for out-of-pocket losses, individuals may opt for a direct cash payment.
- California Additional Cash Payment: Identified individuals on the Class List who are eligible for this payment will receive it upon submitting a valid claim.
How to Participate
Affected individuals must adhere to specific deadlines to participate in the settlement or take other actions:
- Submit a Claim Form: The claim form must be submitted or postmarked by August 27, 2024. This is the only way to receive a payment from the settlement.
- Exclude Yourself by Opting Out: To pursue separate legal action, individuals must mail and postmark their exclusion requests by August 30, 2024.
- Object to the Settlement: Written objections must be mailed and postmarked by August 30, 2024. Affected individuals can also attend the final approval hearing, scheduled for September 16, 2024, to voice their opinions on the fairness of the settlement.
Next Steps and Final Approval
The court will ultimately decide whether to approve the settlement. If the court grants approval and any appeals are resolved, payments to class members will commence. It is crucial for affected individuals to read the settlement notice thoroughly, as it outlines all legal rights and options available. This includes how to submit claims, opt out, or object to the settlement.
Broader Implications
This settlement follows a trend of significant data breach settlements aimed at compensating individuals whose personal information has been compromised. Data breaches have become increasingly common, affecting various industries and exposing sensitive personal information to unauthorized access.
For example, there is another settlement related to a $5.5 million data breach involving wine and spirits, and Walmart recently agreed to a $2.5 million settlement to address claims of inadequate employee compensation. These settlements highlight the growing importance of data security and the need for companies to take proactive measures to protect personal information.
Conclusion
The proposed $6.49 million settlement with CorrectCare Integrated Health, LLC, offers affected individuals an opportunity to claim up to $10,000 for documented losses related to the data breach. It is essential for those impacted to act promptly, adhering to the specified deadlines to ensure their rights and potential compensation are secured. This settlement serves as a reminder of the critical importance of data security and the potential consequences of data breaches for both individuals and companies.