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

$918,510 Settlement Agreed to Resolve Data Breach Litigation Against OB/GYN Clinics

A settlement has been agreed to resolve a class action lawsuit against Physicians to Women, Inc., and Mid-Atlantic Women’s Care over an April 2023 data breach. Hackers gained access to protected health information held by Physicians to Women, Inc. and Mid-Atlantic Women’s Care, including names, dates of birth, Social Security numbers, and medical/health information.

In February 2024, shortly after notification letters were issued, a lawsuit was filed in the United States District Court for the Western District of Virginia by Latoya Johnson over the theft of her sensitive data. A further two lawsuits were filed against the defendants by Janet Hall and Virginia Trupia-Lash. All three actions were consolidated – Johnson et al. v. Physicians to Women, Inc. and Mid-Atlantic Women’s Care, PLC – as they made similar allegations and were based on the same facts.

The lawsuit asserted several claims, including negligence due to the failure to implement appropriate cybersecurity safeguards and adhere to industry-standard security practices. The defendants denied and continue to deny any wrongdoing and all claims and contentions in the lawsuit. A settlement was agreed by all parties to avoid further legal costs and the risks and uncertainties associated with continuing the litigation.

Under the terms of the settlement, the defendants will establish a $918,510.00 settlement fund to cover claims from the plaintiffs. Claims will be paid after attorneys’ fees, legal costs and expenses, and class representative awards have been deducted from the settlement fund. Any remaining funds will be distributed pro rata to the class members.

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Class members may submit a claim for up to $10,000 as reimbursement for out-of-pocket losses incurred due to the data breach, although the cap may be adjusted pro rata depending on the number of valid claims received. The settlement has received preliminary approval from the court, and the final approval hearing has been scheduled for September 2, 2025. Claims must be submitted by September 9, 2025, and any class member wishing to object to the settlement or exclude themselves has until August 11, 2025, to do so.

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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