BerryDunn reaches $7.5 million settlement in data breach lawsuit

Berry, Dunn, McNeil & Parker, LLC (BerryDunn) has agreed to settle a class action lawsuit concerning a data breach that compromised the personal and protected health information of more than 1.1 million individuals. The Portland, Maine-based accounting and consultancy firm will establish a $7.5 million settlement fund to cover legal fees, expenses, and claims from affected class members.

BerryDunn provides accounting, consulting, and health data analytics services to healthcare providers, insurers, and government agencies. The breach, which was discovered on September 14, 2023, involved its Health Analytics Practice Group, which had contracted Reliable Networks of Maine for system management. The breach exposed sensitive personal information, including names, addresses, dates of birth, Social Security numbers, health insurance details, Medicare or Medicaid numbers, state or government-issued ID numbers, passport numbers, and medical records.

Affected individuals were notified in April 2024, and BerryDunn offered complimentary credit monitoring and identity theft protection services. Following the disclosure, legal action ensued, with multiple lawsuits consolidated under the case title In re: Berry, Dunn, McNeil & Parker Data Security Incident Litigation, filed in the U.S. District Court for the District of Maine. While BerryDunn denied any wrongdoing or liability, it opted to settle to mitigate the costs and risks associated with prolonged litigation.

Under the terms of the settlement, eligible class members may submit claims for up to $5,000 to reimburse documented losses related to the data breach. Those who did not experience financial losses or do not wish to submit a claim may opt for a cash payment of approximately $100, with the final amount subject to adjustment based on the total number of claims received. Additionally, all class members will receive three years of complimentary credit monitoring and identity theft protection services, valued at $270.

The court has granted preliminary approval of the settlement, and affected individuals have until May 22, 2025, to submit claims. Those who wish to object to or exclude themselves from the settlement must do so by May 7, 2025. A final approval hearing is scheduled for June 6, 2025, where the court will determine whether to grant final approval to the settlement agreement.