Settlement Resolves Data Breach Litigation Against Falcon Healthcare-Interim Healthcare of Lubbock Texas
Falcon Healthcare, doing business as Interim Healthcare of Lubbock, Texas, a home care and home health care service provider, has agreed to settle class action litigation stemming from a hacking incident that was first identified in June 2022. An unauthorized third party had access to its computer network between April 29, 2022, and July 3, 2022, and downloaded the protected health information of 89,443 patients.
Data compromised in the incident included names, addresses, dates of birth, Social Security numbers, driver’s license numbers, health insurance information, diagnoses, lab results, medications, and treatment information. The affected individuals were offered complimentary credit monitoring and identity theft protection services; however, it took until April 25, 2025, before the affected individuals were notified about the data breach.
On May 1, 2024, a class action lawsuit – Dawn Rice v. Falcon Healthcare, Inc. d/b/a Interim Healthcare of Lubbock, Texas – was filed in the District Court of Lubbock County, Texas, seeking damages on behalf of a national class of individuals affected by the incident. The lawsuit claimed that the data breach could have and should have been prevented. The lawsuit asserted claims of negligence, negligence per se, breach of implied contract, breach of fiduciary duty, and unjust enrichment.
The defendant denied all claims and contentions in the lawsuit, including all claims of liability and wrongdoing. Following mediation, all parties reached an agreement on the material terms of a settlement. A settlement was determined to be the best outcome for all parties to avoid further legal costs and expenses and the uncertainty of a trial and related appeals.
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The terms of the settlement have now been finalized and approved by a federal judge. Falcon Healthcare has agreed to establish a $800,000 settlement fund to cover attorneys’ fees and expenses, settlement administration and notification costs, a service award for the class representative, and two years of medical data monitoring for the class members.
Class members are entitled to claim one of two further benefits. A claim may be submitted for reimbursement of documented, unreimbursed losses due to the data breach up to a maximum of $5,000 per class member. Alternatively, class members may claim a cash payment, which is estimated to be $100 per class member. These benefits will be subject to a pro rata adjustment based on the number of claims received. Further information can be found on the settlement website: https://falcondatasettlement.com/
The deadline for exclusion from the settlement and objection is January 20, 2026. All claims must be submitted by January 26, 2026, and the final fairness hearing has been scheduled for February 10, 2026.
