Umass Memorial Health Proposes $1.2 Million Settlement to Resolve Data Breach Lawsuit
Umass Memorial Health has proposed a $1.2 million settlement to resolve a class action lawsuit that was filed on behalf of individuals affected by its 2020 hacking incident and data breach.
Hackers gained access to Umass Memorial Health’s email environment between June 24, 2020 and January 7, 2021, as a result of responses to phishing emails. The compromised email accounts contained patient names, medical record numbers, driver’s license numbers, financial account information, Social Security numbers, health insurance information, and clinical or treatment information.
Notification letters were sent to affected individuals in October 2021 and complimentary credit monitoring and identity theft protection services were offered to individuals whose Social Security numbers were exposed. The breach affected almost 3,000 Massachusetts residents and was reported to the HHS’ Office for Civil Rights as affecting 209,048 individuals.
The lawsuit, Kesner, et al. v. UMass Memorial Health Care Inc., alleged Umass Memorial Health failed to implement appropriate safeguards to protect patient data and did not issue timely notifications. Umass Memorial Health chose to settle the lawsuit to prevent further legal costs and avoid the uncertainty of trial. Umass Memorial Health has not admitted to any wrongdoing.
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Under the terms of the settlement, class members are entitled to submit claims for reimbursement of ordinary expenses up to $150, which include bank fees, communications charges, and up to three hours of lost time at $25 per hour. Claims may also be submitted for extraordinary losses up to a maximum of $5,000, which can include documented, unreimbursed losses to fraud and identity theft. Class members will also be provided with two years of credit monitoring services. Class members not wishing to take advantage of the benefits will be able to receive a cash payment of $40 in lieu of those benefits.
The deadline for objection to the settlement is March 15, 2023. Claims for the benefits or cash payment must be submitted by April 14, 2023. The final approval hearing is scheduled for May 23, 2023.
