Oak Valley Hospital & Pacific Cataract & Laser Institute Data Breach Settlements Await Final Approval
Settlements proposed by Oak Valley Hospital & Pacific Cataract & Laser Institute to resolve data breach litigation are now awaiting final approval from the courts.
Oak Valley Hospital Settlement
Legal action was taken against Oak Valley Hospital following a security incident last year that involved unauthorized access to patient data. The breach was detected on July 18, 2023; however, hackers first gained access to its network three months previously on April 21, 2023. Information potentially stolen included names, Social Security numbers, health insurance information, and information about the care provided at the hospital. According to the breach notice sent to the HHS’ Office for Civil Rights, 284,629 individuals were affected.
A lawsuit was filed by patient Kathryn Rohrer – Rohrer, et al. v. Oak Valley Hospital District d/b/a Oak Valley Hospital – over the data breach that alleged a failure to implement reasonable and appropriate cybersecurity measures. As a result of the data breach, the plaintiff and class members alleged they faced an increased risk of identity theft and fraud.
The lawsuit asserted claims of negligence, breach of implied contract, breach of fiduciary duty, invasion of privacy, unjust enrichment, declaratory judgment, and violations of California Unfair Competition Law, the California Customer Records Act, the California Consumer Privacy Act, and the California Confidentiality of Medical Information Act.
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Oak Valley Hospital chose to settle the lawsuit with no admission of wrongdoing. Under the terms of the settlement, class members are entitled to claim up to $5,000 for documented out-of-pocket expenses, including up to 3 hours of lost time at $30 per hour, plus a residual cash payment of $100, which may increase or decrease depending on the number of claims and the available funds. Oak Valley Hospital also agreed to invest in additional security measures.
The settlement has already received preliminary approval from the court and the claims deadline is November 19, 2024. The final approval hearing is scheduled for December 19, 2024.
Pacific Cataract & Laser Institute Settlement
Pacific Cataract & Laser Institute (PCLI) has agreed to settle a lawsuit filed in response to a cyberattack and data breach that was announced in March 2024. Hackers gained access to the PCLI network between November 13, 2023, and November 14, 2023, and potentially stole files containing names, dates of birth, Social Security numbers, medical treatment information, health insurance and claims information, financial account information, and driver’s license information. The breach was reported to the HHS’ Office for Civil Rights as involving the protected health information of 9,967 individuals.
A lawsuit was filed – Wix v. Pacific Cataract & Laser Institute Inc.- that alleged PCLI failed to implement and maintain appropriate security measures and could have prevented the data breach. PCLI did not admit any wrongdoing but agreed to a $400,000 settlement to bring the litigation to an end.
Under the terms of the settlement, class members are entitled to claim up to $5,000 as reimbursement for documented out-of-pocket expenses related to the data breach or may opt to receive a cash payment estimated to be around $150 per claimant. The cash payment may be higher or lower depending on the funds available after claims have been paid. The settlement received preliminary approval from the court and the claims deadline was November 12, 2024. The final approval hearing has been scheduled for December 12, 2024.
