PracticeMax settles data breach lawsuit for $3 million

PracticeMax has agreed to a $3 million settlement following claims that it failed to prevent a 2021 data breach compromising patient information. The settlement, benefiting individuals notified about the breach, addresses their potential data exposure resulting from a cyberattack in early 2021 but was disclosed only in June 2022.

Allegations in the class action lawsuit suggest PracticeMax’s failure to implement adequate cybersecurity measures led to the compromise of sensitive patient data, including Social Security numbers and insurance details. Plaintiffs also accused the company of mismanagement by delaying breach announcements, depriving consumers of crucial time to safeguard against potential fraud and identity theft.

Specializing in medical billing, coding, and solutions for healthcare providers, PracticeMax, while not admitting wrongdoing, opted for the $3 million settlement to resolve the data breach class action lawsuit.

The settlement terms outline reimbursements for class members up to $500 for ordinary breach-related losses such as bank fees and credit expenses. Those facing extraordinary losses, not compensated by credit monitoring or identity theft insurance, may receive up to $3,500, provided these losses are documented and incurred between May 1, 2021, and October 5, 2023, with reasonable efforts to seek reimbursement.

All class members stand to receive two years of free credit monitoring and identity theft protection services, offering single-bureau credit monitoring and $1 million in identity theft insurance.

The exclusion and objection deadline is January 25, 2024, with the final approval hearing set for March 14, 2024. Class members must submit valid claim forms by February 24, 2024, to avail of settlement benefits.

Eligible individuals include those who received PracticeMax’s breach notice, indicating potential compromise due to the 2021 cyberattack disclosed in June 2022.