Coleman Professional Services agrees to settle 2023 data breach

Coleman Professional Services, an Ohio-based nonprofit behavioral health and human services organisation, has agreed to settle a class action lawsuit stemming from a 2023 data security incident.

 

In February 2024, Coleman Professional Services, an Ohio-based nonprofit behavioral health and human services organization, disclosed that it had identified unauthoriSed access to several employees’ email accounts containing sensitive personal information of individuals associated with the organisation. Coleman, with the help of third-party cybersecurity experts, investigated the incident and determined that unauthorised access to affected email accounts occurred between September 18 and October 31, 2023.

 

Coleman’s review confirmed that the incident compromised the sensitive personal data of over 50,000 people, including their names, social security numbers, driver’s license numbers, and health information.

 

A class action lawsuit was filed against Coleman in the Portage County Court of Common Pleas. The plaintiffs claimed that the healthcare provider did not take adequate steps to safeguard their personal information and failed to maintain appropriate cyber security measures. According to the complaint, these alleged shortcomings contributed to the data breach and the unauthorised exposure of sensitive information.

 

To avoid the rising costs and uncertainty of a trial, Coleman agreed to a settlement—without admitting any fault—allowing class members to claim their benefits.

 

Under the proposed settlement, Class Members may receive up to $5,000 for documented losses or expenses related to the data incident, an estimated $70 cash payment based on a 10% claims rate among the 51,889-member Settlement Class, and/or one year of three-bureau identity and credit monitoring, with payments subject to pro rata adjustment based on the remaining Settlement Fund.

 

Eligible losses include expenses related to identity theft or fraud, Social Security number misuse, credit-report access or freezes, miscellaneous costs, mitigation expenses incurred since September 2023, and unpaid time off work related to the Incident. Claims must include the Class Member’s name and address, supporting documentation, and, if needed, a brief description of the loss; receipts and other third-party records may substantiate the claim.

 

The proposed settlement has been granted preliminary approval by the court but has not yet become final. A final approval hearing is scheduled for October 13, when the court will decide whether to approve the settlement.