A Pennsylvania health care provider has agreed to pay $3 million in damages over a major cyber security breach.
Healthcare Services Group collaborated in Williamson et al. v. Healthcare Services Group, Inc., reports HIPAA Journal.
The company provides organic, nutritional, and nutritional services in thousands of medical and health care facilities in 48 states.
Unauthorized access to company systems allegedly allowed the theft of names, Social Security numbers, driver’s licenses, financial account numbers, login credentials and protected health information. Also affected were social security numbers and health insurance information.
The data breach was discovered on October 7, 2024, and affected the personal and security information of 624,496 people.
Among the charges filed against Healthcare Services Group in the lawsuit that led to the settlement are negligence, breach of fiduciary duty, unjust enrichment and breach of consumer protection laws.
The lawsuit settlement fee provides class members with three years of credit monitoring and theft protection.
Eligible individuals may also seek reimbursement for lost income up to $5,000 each along with additional expenses.
The company denies any wrongdoing but chose to settle the complaint and avoid a lengthy trial.
Applications must be submitted by October 1, 2026, before the final fair hearing scheduled for September 24, 2026.
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