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The HIPAA Journal is the leading provider of HIPAA training, news, regulatory updates, and independent compliance advice.

WPM Pathology Laboratory; Salina Regional Health Center Settle Class Action Litigation

A settlement has been agreed to resolve class action litigation over a November 2024 targeted cyberattack on the information systems of WPM Pathology Laboratory. The cyberattack occurred on or around November 4, 2024, and resulted in unauthorized access to sensitive personally identifiable information (PII) and protected health information (PHI). Data compromised in the incident included names, dates of birth, Social Security numbers, diagnosis information, medical record numbers, and health insurance claims information.

WPM Pathology Laboratory is based in Salina, Kansas, and provides anatomic pathology, cytology, and molecular testing services to hospitals and clinics, including Salina Regional Health Center, which is also named as a defendant in the lawsuit. The lawsuit – Steinle v. WPM Pathology Laboratory and Salina Regional Health Center, Inc. – was filed in the District Court of Saline County, Kansas, by plaintiff Shawn Steinle, who alleged that the cyberattack was due to the failure of the defendants to implement reasonable cybersecurity safeguards. The lawsuit asserted claims for negligence, negligence per se, breach of implied contract, unjust enrichment, and invasion of privacy, all of which were denied by the defendants.

After considering the likely cost, delay, and risk associated with continued litigation, all parties explored the opportunity of an early resolution. Negotiations were conducted at arm’s length without mediation, and a settlement has been agreed upon and has received the first nod from the court. The defendants have agreed to pay benefits to the class members, as well as attorneys’ fees and expenses, settlement administration costs, and a service award to the class representative.

Class members are entitled to claim a two-year membership to the CyEx Identity Defense Complete credit monitoring service, plus a cash payment. A claim may be submitted for reimbursement of documented, unreimbursed ordinary losses up to $400.00 incurred between November 4, 2024, and October 19, 2026 and/or extraordinary losses up to $4,000.00 incurred between the same dates. A claim may also be submitted for reimbursement of up to four hours of lost time at $20.00 per hour. Individuals who do not submit a claim for any of those cash payments may claim an alternative $45.00 cash payment, in addition to the credit monitoring services.

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Individuals wishing to opt out of the settlement or file an objection must do so by October 19, 2026, and claims must be submitted by the same date. The final fairness hearing has been scheduled for December 16, 2026.

Author: Steve Alder is the editor-in-chief of The HIPAA Journal. Steve is responsible for editorial policy regarding the topics covered in The HIPAA Journal. He is a specialist on healthcare industry legal and regulatory affairs, and has 10 years of experience writing about HIPAA and other related legal topics. Steve has developed a deep understanding of regulatory issues surrounding the use of information technology in the healthcare industry and has written hundreds of articles on HIPAA-related topics. Steve shapes the editorial policy of The HIPAA Journal, ensuring its comprehensive coverage of critical topics. Steve Alder is considered an authority in the healthcare industry on HIPAA. The HIPAA Journal has evolved into the leading independent authority on HIPAA under Steve’s editorial leadership. Steve manages a team of writers and is responsible for the factual and legal accuracy of all content published on The HIPAA Journal. Steve holds a Bachelor’s of Science degree from the University of Liverpool. You can connect with Steve via LinkedIn or email via stevealder(at)hipaajournal.com

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