Arisa Health to Pay $1.9 Million to Settle Data Breach Litigation
Arisa Health, an Arkansas behavioral health system, has agreed to pay $1.9 million to settle a class action lawsuit that was filed in response to a March 2024 cyberattack. Hackers breached the Arisa Health network and gained access to the protected health information of more than 375,000 patients.
Hackers had access to the Arisa Health network for almost three weeks between March 1, 2024, and March 18, 2024, and obtained files containing patient names, contact information, Social Security numbers, health insurance information, medical histories, diagnoses, driver’s license numbers, and certifications of substance abuse program completion.
A class action lawsuit – Rebecca Miller et. al., v. Arisa Health, Inc. – was filed in the Circuit Court of Johnson County, Arkansas over the data breach. The plaintiffs alleged that the cyberattack and data breaches were the result of negligence by Arisa Health, which failed to implement reasonable and appropriate cybersecurity measures to prevent unauthorized access to highly sensitive patient data.
Arisa Health denies all claims and contentions in the lawsuit and maintains there was no wrongdoing; however, a settlement was agreed to bring the litigation to an end to avoid further legal costs and the risks and uncertainties of trial. Under the terms of the settlement, Arisa Health has agreed to establish a $1,900,000 settlement fund to cover litigation costs and expenses, attorneys’ fees, class representative awards, claims, and cash payments for class members.
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Class members are entitled to three years of credit monitoring services and may claim a cash payment, which is estimated to be around $70. Class members may also submit a claim for reimbursement of documented out-of-pocket losses and expenses fairly traceable to the data breach up to a maximum of $5,000 per class member. The cash payments will be paid pro rata after claims have been paid, and costs and expenses have been deducted from the settlement fund, and they may be higher or lower than $70, depending on the number of valid claims received.
The settlement has received preliminary approval from the court, and the final fairness hearing is scheduled for September 24, 2025. Individuals wishing to object to or exclude themselves from the settlement have until August 12, 2025, to do so, and claims must be submitted by August 27, 2025.
