Lucent Health agrees to settle class action lawsuit over 2023 phishing attack

Tennessee-based Lucent Health Solutions has agreed to resolve a class action lawsuit stemming from a 2023 phishing attack that affected the healthcare benefits administration company.

Lucent Health was the target of a cyber attack in 2023 after threat actors gained access to the email account of an employee through a phishing campaign. The unauthorised access exposed sensitive information belonging to nearly 40,000 members and plan participants, including personal and protected health information contained in the compromised mailbox. 

A class action lawsuit, Royal Corralejo v. Lucent Health Solutions, LLC, was filed in the Circuit Court for Davidson County, Tennessee. The lawsuit alleges that an isolated targeted cyber attack on the company’s computer systems in October 2023 resulted in unauthorised access to files containing personal information. The lawsuit also alleged that the defendant failed to implement reasonable and appropriate cybersecurity measures, resulting in the data breach. 

While Lucent Health denied any wrongdoing or negligence, both sides agreed to settle the case to avoid the costs and risks of continued litigation and allow Class members to receive benefits under the settlement.

Under the settlement, all Class Members may enroll in three years of CyEx Medical Shield Complete and may also be eligible for one or more cash payment options described in the Settlement. The Settlement provides for an aggregate cap of $1,950,000.00 on cash payments. If the total value of claimed cash payments exceeds this amount, each payment will be reduced on a pro rata basis so that the total payments do not exceed the cap.

All Class Members are eligible to enroll in three years of CyEx Medical Shield Complete, a service that includes $1 million in medical identity theft insurance and monitoring for healthcare insurance ID exposure, Medical Record Number (MRN) exposure, and unauthorized Health Savings Account (HSA) spending.

The proposed settlement has been granted preliminary approval by the court but has not yet become final. A final approval hearing is scheduled for September 9, when the court will decide whether to approve the settlement.