Veradigm to Pay $10.5 Million to Settle Lawsuit Tied to 2024 Data Breach

Chicago-based healthcare technology company Veradigm has agreed to a $10.5 million settlement stemming from a December 2024 data breach that compromised patients’ sensitive personal information, allegedly due to insufficient data security measures.

 

Based in Chicago, Veradigm (formerly Allscripts) is a leading healthcare technology company that delivers data-driven solutions—such as electronic health records, practice management, and analytics—to support providers, payers, and life sciences organisations, while connecting patients and partners through a broad care network.

 

In a data security incident notice filed with the Office of California Attorney General, Veradigm said that on July 1, it identified unauthorised access to its internal network where threat actors potentially accessed and acquired copies of certain files. The healthcare technology provider immediately launched an investigation, with assistance from external cyber security experts, to determine the nature and scope of the incident.

 

It also took steps to secure the affected systems and notified relevant law enforcement authorities about the incident.

 

The investigation found that on December 15, 2024, an unknown third party infiltrated the internal network of a Veradigm client, obtained stolen credentials, and used them to access files containing sensitive personal data of individuals associated with the company.

 

Multiple class action lawsuits were filed against Veradigm in the U.S. District Court for the Northern District of Illinois, that alleged the healthcare technology provider failed to protect sensitive data from unauthorised access due to inadequate security practices. 

 

Although Veradigm has denied any allegations of misconduct or responsibility, the parties reached an agreement in principle to resolve the lawsuit without any admission of liability. As part of the proposed settlement, Veradigm will create a $10.5 million settlement fund to pay eligible class member claims, cover settlement administration expenses, and fund attorneys’ fees and costs, subject to court approval.

 

Class members must submit any objections or requests to opt out by February 17, 2026. All claims are required to be filed by March 3, 2026, and the final fairness hearing is set for March 18, 2026.