Dameron Hospital Settles Class Action Data Breach Lawsuit For $650,000
Dameron Hospital in California has agreed to pay $650,000 to settle litigation arising from a cyberattack and data breach that occurred on or around December 2023. Dameron Hospital, a 200+ bed hospital in Stockton, California, announced in December 2023 that it was investigating a cyberattack that had disrupted critical systems. A lawsuit, Carmona v. Dameron Hospital Association d/b/a Dameron Hospital, was filed on January 15, 2024, in response to the incident before any notification letters were issued.
The lawsuit claims the information compromised in the incident included names, addresses, email addresses, phone numbers, dates of birth, Social Security numbers, payment/account information, health insurance information, and medical information. As of April 23, 2025, no breach report is listed on the HHS’ Office for Civil Rights breach portal under the name Dameron Hospital or Dameron Hospital Association. The lawsuit claims the defendant failed to implement and maintain reasonable network safeguards, did not comply with industry-standard cybersecurity practices, did not encrypt sensitive data, or provide adequate training to staff members, and when the breach occurred, it was not detected in a timely manner.
The lawsuit asserted claims of negligence and negligence per se, breach of implied contract, breach of fiduciary duty, unjust enrichment, and violations of the California Customer Records Act, California Consumer Privacy Act, California Consumer Legal Remedies Act, California Confidentiality of Medical Information Act, and California Unfair Competition Law. Dameron Hospital denied and continues to deny all claims and maintains there was no wrongdoing; however, a settlement was negotiated to avoid further legal costs and the uncertainty and risks associated with continuing the litigation.
Under the terms of the settlement, class members may submit a claim for reimbursement of up to $5,000 for unreimbursed economic losses caused by the data breach, and free 3-bureau credit monitoring services for 12 months. Alternatively, class members may choose to receive a cash payment of $50 for non-California residents and $100 for California residents. The final fairness hearing has been scheduled for May 29, 2025.
Get The FREE
HIPAA Compliance Checklist
Immediate Delivery of Checklist Link To Your Email Address
Please Enter Correct Email Address
Your Privacy Respected
HIPAA Journal Privacy Policy
