Zoll Medical to pay $3.5 million to resolve data breach class action

Medical technology company Zoll Medical has agreed to pay $3.5 million to resolve a class action lawsuit arising from a 2023 data security breach.

 

In January 2023, medical technology company Zoll Medical experienced a data security breach after unauthorised actors gained access to  its internal network. The incident exposed certain personal information associated with individuals, prompting the company to investigate the breach, notify affected parties, and work with cybersecurity specialists to strengthen its security measures. 

 

The data breach compromised sensitive personal data of over 1 million individuals including their names, addresses, dates of birth, Social Security numbers and more.

 

Following the cyberattack, a class action lawsuit was filed against Zoll Medical in the U.S. District Court for the District of Massachusetts. The plaintiffs claimed that the company did not take adequate steps to safeguard their personal information and failed to maintain appropriate cyber security measures. According to the complaint, these alleged shortcomings contributed to the data breach and the unauthorised exposure of sensitive information.

 

While Zoll Medical 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 proposed settlement, Zoll Medical will establish a $3.5 million settlement fund to cover eligible cash payments to class members, reimbursement for documented out-of-pocket losses, attorneys’ fees, litigation and administration costs, taxes, and service awards for class representatives. 

 

Eligible class members may claim up to $5,000 for documented losses related to the data breach, including identity theft expenses and credit monitoring, with supporting documentation required. They may also receive a pro rata cash payment, with an estimated $100 for those whose Social Security numbers were potentially compromised and $50 for those whose Social Security numbers were not affected, subject to the number of valid claims.

 

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 10, when the court will decide whether to approve the settlement.