Healthcare Services Group Agrees to $3 Million Settlement Over 2024 Data Breach

Pennsylvania-based Healthcare Services Group has agreed to resolve a class action lawsuit filed in connection with the data security incident it suffered in 2024.

In a data security incident notice filed with the Office of the Maine Attorney General, HCSG said it detected unauthorised access to its internal network on October 7, 2024. The healthcare services provider immediately launched an investigation, with the support of external cybersecurity experts, to determine the nature and extent of the incident. The company also took steps to secure the affected network and notified the relevant law enforcement authorities.

HCSG said the investigation determined that an unauthorised actor may have accessed and copied certain files from its computer systems between September 27, 2024, and October 3, 2024. The compromised data included names, Social Security numbers, driver’s license numbers, state identification numbers, financial account information, and full account access credentials. According to the filing with the Maine state regulator, HCSG has identified at least 624,496 individuals whose information was affected by the incident.

A class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania following the cyberattack. The plaintiffs alleged that HCSG failed to implement reasonable security measures to protect their personal information and breached its contractual obligations to safeguard their data. They also claimed the company was unjustly enriched by benefiting financially while allegedly failing to provide adequate data security, and accused HCSG of violating the New Jersey Consumer Fraud Act, the Washington Consumer Protection Act, and other applicable laws. 

Although HCSG has denied the allegations and maintains that it did not engage in any wrongdoing, the company has agreed to a proposed $3 million class action settlement. The settlement has received preliminary approval, and a judge in the U.S. District Court for the Eastern District of Pennsylvania is scheduled to decide whether to grant final approval at a hearing on September 24, 2026.

If approved, the settlement fund will compensate eligible class members for documented financial losses, provide pro rata cash payments and three years of credit monitoring, and cover claims administration costs, court-approved attorneys’ fees and expenses, and service awards.