The HIPAA Journal is the leading provider of news, updates, and independent advice for HIPAA compliance

Empress Ambulance Service Settles Class Action Lawsuit for $1.05 Million

Empress Ambulance Service, an ambulance company that operates in many regions of New York as Empress EMS, has proposed a $1.05 million settlement to resolve claims it failed to implement appropriate cybersecurity safeguards to protect the sensitive data of patients. Empress EMS suffered a Hive ransomware attack in July 2022, in which files were encrypted and sensitive patient data was stolen. The Hive group published some of the data on its data leak site; however, Empress EMS paid the ransom, and the data was removed from the leak site. The forensic investigation confirmed the protected health information of 318,558 patients was compromised in the attack.

Several lawsuits were filed in response to the data breach and a settlement has been proposed to resolve the claims, with no admission of wrongdoing by Empress EMS. Under the terms of the settlement, class members – individuals who were notified about the data breach by Empress EMS – are entitled to submit claims for up to $10,000 for reimbursement of documented expenses incurred as a result of the data breach, such as tax and credit expenses, identity theft damages, fraudulent charges, and professional fees.

Alternatively, class members may choose to receive a cash payment, which will be paid pro rata after legal fees and claims have been deducted from the settlement fund. Should the claims exceed the total settlement, they will be paid pro rata and no cash payments will be made. The settlement also includes one year of credit monitoring and identity theft protection services, which include a $1 million identity theft insurance policy. The deadline for objection to or exclusion from the settlement is March 8, 2024, valid claims must be submitted by April 8, 2024, and the final approval hearing has been scheduled for April 3, 2024.

Author: Steve Alder is the editor-in-chief of 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

x

Is Your Organization HIPAA Compliant?

Find Out With Our Free HIPAA Compliance Checklist

Get Free Checklist