Judge Grants Preliminary Approval of Salud Family Health’s Proposed Data Breach Settlement
Salud Family Health Inc. has agreed to settle a class action lawsuit that was filed in response to a cybersecurity incident that saw unauthorized individuals gain access to its network and sensitive patient data in early September 2022.
More than 427,540 individuals had their protected health information exposed in the incident, including names, Social Security numbers, driver’s license numbers, state identification card numbers, credit card numbers, passport numbers, financial account information, medical treatment/ diagnosis information, health insurance information, biometric data, and usernames and passwords. The Lorenz ransomware group claimed responsibility for the attack and claimed to have exfiltrated more than 400,000 Social Security numbers.
In February 2023, the law firm Shub & Johns LLC filed a class action lawsuit in the United States Court for the District of Colorado on behalf of the individuals affected by the data breach. A consolidated amended complaint was subsequently filed in the 19th District Court for the State of Colorado in Weld County, Alexander, et al., v. Salud Family Health Inc., consolidating cases with Mason Law Group LLC.
Salud Family Health proposed a settlement to resolve all claims related to the data breach with no admission of liability. A Colorado judge recently granted preliminary approval of the settlement after finding it fair, reasonable, and adequate. A final approval hearing has been scheduled for December 13, 2023. Under the terms of the settlement, class members may submit claims for up to $7,500 for reimbursement of documented losses that were incurred as a result of the data breach, and/or two years of credit monitoring and insurance services, and/or reimbursement for up to 4 hours of lost time at a rate of $20 per hour. Claims may be submitted by individuals who received a notification from Salud Family Health that their sensitive information was compromised in the incident.
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The deadline for exclusion from or objection to the settlement is November 12, 2023. The deadline for submitting claims is December 12, 2023.
