Settlements Resolve Data Breach Lawsuits Against McKenzie Health System & Aspire Health Alliance
Settlements have been agreed to resolve class action data breach lawsuits against McKenzie Health System in Michigan and Aspire Health Alliance in Massachusetts.
McKenzie Health System Data Breach Settlement
McKenzie Health System, the operator of the McKenzie Memorial Hospital, a critical access hospital in Sanilac County, Michigan, has settled a class action lawsuit that was filed in response to an April 2025 cyberattack and data breach. McKenzie Health identified unauthorized access to its computer network on April 15, 2025. The forensic investigation determined that an unauthorized third party accessed its network between April 14, 2025, and April 15, 2025, and potentially obtained files containing patient information.
Data potentially compromised in the incident included names, addresses, birth dates, Social Security numbers, patient account numbers, medical record numbers, diagnosis and treatment information. The data breach was reported to the HHS’ Office for Civil Rights as affecting 58,839 individuals, who started to be notified on or around July 24, 2025.
Several class action lawsuits were filed in response to the data breach, which were consolidated into a single action – In Re: McKenzie Memorial Hospital d/b/a McKenzie Health System 2025 Data Breach Litigation – in the Circuit Court for Sanilac County, Michigan. The consolidated lawsuit alleges that the cyberattack and data breach should have been prevented and occurred due to the defendant’s negligence.
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McKenzie Health denies wrongdoing and liability; however, it agreed to a settlement to avoid the litigation costs and expenses, distractions, burden, expense, and disruption to its business operations associated with further litigation. McKenzie Health has agreed to pay attorneys’ fees and expenses, settlement administration costs, and service awards for the eight class representatives.
Under the terms of the settlement, all class members are eligible to enroll in two years of credit monitoring and identity theft protection services. In addition, they may either submit a claim for reimbursement of documented, unreimbursed losses due to the data breach up to a maximum of $4,000 per class member or claim a one-time $50.00 cash payment. The deadline for opting out, objecting, and submitting a claim is August 24, 2026. The final fairness hearing has been scheduled for October 6, 2026.
Aspire Health Alliance Data Breach Settlement
South Shore Mental Health Center, Inc., doing business as Aspire Health Alliance, a state-designated community behavioral health center with facilities in Quincy, Braintree, and Marshfield in Massachusetts, has agreed to settle class action litigation stemming from a September 2023 cybersecurity incident that affected 17,490 individuals.
Aspire Health Alliance detected unauthorized network access on September 13, 2023, and confirmed that an unauthorized third party accessed and acquired files containing patient information, including names, dates of birth, dates of service, health insurance information, condition or treatment information, Medicare/Medicaid numbers, and patient account numbers. The affected individuals started to be notified about the data breach on April 26, 2024.
On May 10, 2024, a class action lawsuit was filed in the Superior Court of the Commonwealth of Massachusetts, Norfolk County, which was subsequently moved to the Superior Court of the Commonwealth of Massachusetts, Suffolk County. The lawsuit – Joan Tozzi v. South Shore Mental Health Center, Inc. d/b/a Aspire Health Alliance – alleged that the data breach could have been prevented as it occurred as a result of the failure to implement reasonable and appropriate cybersecurity measures. The lawsuit asserted claims for negligence, breach of implied contract, breach of fiduciary duty, and unjust enrichment. Aspire Health Alliance denies wrongdoing or liability.
All parties agreed to a settlement to avoid further legal costs and the uncertainty of a trial and related appeals. Under the terms of the settlement, Aspire Health Alliance has agreed to establish a $400,000 settlement fund to cover class member benefits, attorneys’ fees and expenses, settlement administration costs, and a service award for the class representative.
Class members are entitled to a one-year membership to the CyEx Medical Shield medical data monitoring service and may also submit a claim for one of two cash payments: reimbursement of documented, unreimbursed losses up to a maximum of $2,500 per class member, or a pro rata cash payment, the value of which will depend on the number of valid claims received. The deadline for objection, opting out, and submitting a claim is September 16, 2026. The final fairness hearing has been scheduled for October 1, 2026.
