Medusind to pay $5 million to resolve class action over 2023 data breach

Medusind, a Florida-based revenue cycle management and practice management software vendor, has agreed to a $5 million settlement to resolve a consolidated class action lawsuit stemming from a 2023 data breach that exposed the personal and health information of more than 701,000 individuals.

The company detected unauthorized access to its systems on or around December 29, 2023, and later determined that files containing sensitive information had been exfiltrated. The compromised data included names, contact details, health insurance information, medical histories, driver’s license numbers, passport numbers, and Social Security numbers. Notification letters were mailed to affected individuals more than a year after the incident was first identified.

Eight lawsuits were filed in the aftermath of the breach, alleging negligence for failing to implement adequate safeguards to protect protected health information. The cases were consolidated in the U.S. District Court for the Southern District of Florida as Ashley Owings v. Medusind, Inc. Medusind has denied liability and disputes the allegations but reached the agreement following mediation on June 10, 2025. The company did not admit wrongdoing as part of the settlement.

Under the terms of the settlement, Medusind will create a $5 million fund to cover attorneys’ fees, settlement administration costs, class representative awards, credit monitoring, and cash payments to eligible claimants. Class members may choose to claim up to $5,000 for documented, unreimbursed losses related to the breach or receive a pro rata cash payment estimated at around $100. California residents are eligible for an additional statutory award of approximately $100. All class members are entitled to two years of complimentary credit monitoring services.

Beyond financial compensation, Medusind has also agreed to strengthen its security practices. The company must provide class counsel with a written attestation confirming implementation of the measures before the settlement receives final approval.

Class members who wish to opt out or object must do so by December 14, 2025. Claims must be filed by December 29, 2025. A final approval hearing is scheduled for January 12, 2026.