Avem Health Partners Agrees $1.45 Million Settlement to Resolve Class Action Data Breach Lawsuit
A $1.45 million settlement has been agreed by Avem Health Partners to resolve claims related to a 2022 HIPAA data breach involving the protected health information of 271,303 individuals. Avem Health Partners is an Oklahoma City-based provider of administrative and technology services to healthcare organizations. On May 16, 2022, hackers were found to have gained access to the servers of one of its vendors, 365 Data Centers. The unauthorized access occurred on May 14, 2022, and Avem Health Partners was notified about the data breach on September 9, 2022.
The exposed data included names, dates of birth, Social Security numbers, driver’s license numbers, health insurance information, and diagnosis and treatment information, and the affected individuals were notified by Avem Health Partners in December 2022. Legal action – Bingaman, et al. v. Avem Health Partners Inc. – was taken over the breach with the plaintiffs alleging their protected health information was negligently maintained and had appropriate cybersecurity measures been implemented, the breach could have been prevented. Avem Health Partners chose to settle the lawsuit with no admission of wrongdoing.
Claims will be accepted from individuals who were notified about the data breach by Avem Health Partners. Claims may be submitted for up to $7,000 to cover out-of-pocket expenses incurred due to the data breach, including credit expenses, bank fees, losses to identity theft and fraud, and up to five hours of lost time at $25 per hour. Individuals who do not submit claims to cover losses will be eligible to receive a cash payment of up to $100, although that amount may be reduced depending on the number of claims received.
Regardless of the option chosen, class members will be eligible to receive three years of identity theft protection and credit monitoring services, which include a $1 million identity theft insurance policy. The deadline for objection to and exclusion from the settlement is April 25, 2024, and the final approval hearing has been scheduled for May 10, 2024.
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