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

Oglethorpe Settles Data Breach Lawsuit

Oglethorpe, a Tampa, FL-based network of mental health and addiction recovery treatment facilities, was sued in response to a June 2025 hacking incident in which the personal and protected health information of 92,000 current and former patients and employees was stolen. The lawsuit has recently been settled and a cash fund of $350,000 will be created to cover benefits for class members.

The hacking incident was discovered in June 2025. The forensic investigation determined that the hacker exfiltrated information such as names, Social Security numbers, driver’s license or state identification numbers, and medical information. The affected individuals started to be notified about the incident on October 31, 2025. Multiple class action lawsuits were filed in response to the data breach, alleging that it could have been prevented had reasonable and appropriate cybersecurity measures been implemented.

The lawsuits were consolidated – Scott, et al. v. Oglethorpe, Inc.– in the Circuit Court for Broward County, Florida, since they had overlapping claims and were based on the same facts. The consolidated lawsuit asserted claims for negligence, negligence per se, breach of implied contract, and unjust enrichment, as well as requesting declaratory and injunctive relief. Oglethorpe denies wrongdoing, fault, and liability.

All parties explored the opportunity for early resolution of the lawsuit to avoid unnecessary legal costs and the uncertainty of a trial and related appeals. Following several weeks of arms-length negotiations, a settlement was agreed upon that was acceptable to all parties. Under the terms of the settlement, Oglethorpe has agreed to cover attorneys’ fees and expenses, settlement administration and notification costs, and service awards for the class representatives. A fund of $350,000 will be created to cover benefits for the class members.

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All class members may enroll in one year of medical data monitoring services, which include a $1 million medical identity theft insurance policy. They may also claim one of two cash benefits: A claim may be submitted for reimbursement of documented, unreimbursed losses due to the data breach up to a maximum of $2,500 per class member, or a claim may be submitted for an alternative one-time cash payment of $75. That cash payment is subject to a pro rata reduction should the claim total exceed $350,000.

The settlement has received preliminary approval from the court, and the final fairness hearing has been scheduled for June 22, 2026. Claims must be submitted by August 8, 2026, and individuals wishing to object to the settlement or exclude themselves must do so by June 8, 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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