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

Behavioral Health Resources Pays $1.1 Million to Settle Data Breach Lawsuit

Behavioral Health Resources, a behavioral and mental health services provider serving patients in Thurston County, Olympia, in Washington state, has agreed to settle a consolidated class action lawsuit stemming from a data incident identified on November 20, 2024. The forensic investigation confirmed unauthorized access to its technology systems, resulting in the exposure and potential theft of the personal and protected health information of 50,083 current and former patients. The affected individuals were notified about the incident in January 2025.

Several class action lawsuits were filed in response to the data breach, the first of which was filed by plaintiff Carol Walker in the Superior Court of Thurston County, Washington. Separate class action complaints were subsequently filed by plaintiffs Rebecca A. Campos, Adam Shotswell, Smukweshun Okena, and Kim Ridgway. The lawsuits were consolidated into a single complaint – Walker et al. v. Behavioral Health Resources.

The plaintiffs allege that Behavioral Health Resources failed to implement reasonable and appropriate cybersecurity measures to protect patients’ protected health information, in violation of federal and state laws. Behavioral Health Resources maintains that there was no wrongdoing, that the class representatives and the class members have not suffered any damages as a result of the data breach, and the defendant denies that the complaint meets the requirements to be tried as a class action lawsuit. Following mediation and subsequent negotiations, all parties agreed to settle the litigation to avoid further legal costs and the uncertainty of a trial. The settlement was agreed upon by all parties on August 25, 2025, and has been granted preliminary approval by the court.

Behavioral Health Resources has agreed to establish a $1.1 million settlement fund to cover attorneys’ fees and expenses, settlement administration costs, and service awards for the class representatives. After those costs have been deducted, the remainder of the settlement will be used to pay benefits to the class members. Class members may submit a claim for reimbursement of documented, unreimbursed losses due to the data breach up to a maximum of $5,000 per class member. Class members can also submit a claim for reimbursement of attested lost time of up to five hours at $25 per hour, and a one-time cash payment, which is expected to be approximately $100 per class member, but may be higher or lower, depending on the number of valid claims.

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Class members are also eligible to enroll in the CyEx Medical Shield Total medical data monitoring service for three years, which includes a $1 million identity theft insurance policy. The final approval hearing has been scheduled for February 6, 2026. The opt-out and objection deadline is December 13, 2025, and the claim deadline is January 1, 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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