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Orthopedics Rhode Island Agrees to Pay $2.9 Million to Settle Class Action Data Breach Lawsuit

Orthopedics Rhode Island (Ortho RI) has agreed to pay $2.9 million to settle a class action lawsuit stemming from a 2024 ransomware attack. The ransomware attack was detected by Ortho RI on September 7, 2025, with the forensic investigation confirming unauthorized network access from September 4 to September 8, 2024. Information compromised in the incident included names, addresses, dates of birth, billing and claims information, health insurance claims information, diagnoses, medications, test results, x-ray images, and other treatment information. The data breach was reported to the HHS’ Office for Civil Rights as involving unauthorized access to the protected health information of 377,731 individuals. The affected individuals were notified about the incident via a November 6, 2024, website notice and individual notifications, which were mailed on December 6, 2024.

Seven class action lawsuits were filed against Ortho RI over the data breach, one of which was dismissed. The remaining actions were consolidated in Lavoie-Soria et al. v Orthopedics Rhode Island, Inc. in Kent County Superior Court of the State of Rhode Island, as the lawsuits had overlapping claims and were based on the same facts. The plaintiffs claim to have suffered injuries due to the attack, including lost or diminished value of their private information, lost opportunity costs associated with mitigating the consequences of the data breach, and out-of-pocket losses associated with the prevention, detection, and recovery from identity theft and fraud. The lawsuit asserted claims of negligence and negligence per se due to the failure to implement reasonable and appropriate cybersecurity measures, breach of implied contract, unjust enrichment, and breach of fiduciary duty.

Ortho RI maintains there was no wrongdoing; however, it chose to settle the lawsuit to avoid the costs, risks, and uncertainty of continuing with the litigation. The class representatives believe the settlement is best for all individuals in the settlement class for the same reasons. Under the terms of the settlement, all class members are entitled to claim two years of medical record monitoring services plus one of two cash payments. A claim may be submitted for reimbursement of documented, unreimbursed losses related to the data breach up to a maximum of $5,000 per class member. Alternatively, class members may claim an alternative cash payment, which is anticipated to be around $100. Attorneys’ fees, settlement administration costs, service awards for class representatives, and medical record monitoring costs will be deducted from the settlement fund, after which claims will be paid from the remaining funds.

The deadline for objection to and exclusion from the settlement is December 29, 2025. The deadline for submitting a claim is January 13, 2026, and the final approval hearing has been scheduled for January 28, 2026.

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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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