CorrectCare Sued Over 2022 Data Breach Affecting 1.5M Consumers [UPDATE]
Last Updated on August 16, 2024
Oliver et al. v. CorrectCare-Integrated Health, LLC
Filed: March 19, 2023 ◆§ 1:23-cv-01168
CorrectCare faces a class action over a 2022 data breach that impacted almost 1,500,000 individuals.
August 16, 2024 – CorrectCare Settles Data Breach Lawsuit for $6.49M
United States District Judge Danny C. Reeves has granted preliminary approval to a $6.49 million settlement that resolves the proposed class action detailed on this page, which was consolidated with a similar lawsuit filed over the 2022 CorrectCare data breach.
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The deal covers anyone whose personal information was compromised as a result of the CorrectCare data incident. The official settlement website can be found at CorrectCareSettlement.com.
Class members who submit a timely, valid claim are eligible to receive reimbursement for up to $10,000 to cover out-of-pocket expenses fairly traceable to the data breach. Alternatively, class members can file a claim for a pro-rated cash payment in lieu of a payment for out-of-pocket losses.
California residents will automatically receive an additional cash payment, regardless of which option they choose, the settlement website states.
To file a claim, head to this page and enter the class member ID included in your settlement notice. If you did not receive a class member ID, you must register here.
The deadline to file a claim form is August 27, 2024. You can contact the settlement administrator with any questions by heading here.
A final approval hearing is slated for September 16, 2024. Compensation will begin to go out to consumers if and when the CorrectCare settlement is given final approval and any appeals are resolved.
Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.
CorrectCare-Integrated Health, LLC faces a proposed class action over a 2022 data breach that impacted almost 1,500,000 individuals, including those who have “interacted with” the Georgia Department of Public Safety and Corrections and county jails statewide.
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The 21-page case claims CorrectCare, which provides medical claims processing for correctional facilities, discovered on July 6, 2022 that two file directories on its web server containing patient information had been “inadvertently exposed” to the public internet as early as January 22, 2022. According to the suit, the breach was a direct result of CorrectCare’s failure to implement adequate cybersecurity procedures.
Per the case, CorrectCare had a legal duty under the Health Insurance Portability and Accountability Act (HIPAA) to comply with industry standards to safeguard patients’ medical information.
To compound matters, CorrectCare failed to provide victims timely notice of the incident and instead waited until November 28 to inform affected individuals that their names, dates of birth, Social Security numbers and certain “limited health information, such as a diagnosis code and/or CPT code” had been publicly exposed, the complaint contends.
The complaint stresses that affected individuals now face an “increased and imminent” risk of fraud and identity theft that may continue for years to come.
The three plaintiffs, who are currently serving sentences in the Georgia Department of Corrections, say they had their sensitive information entrusted to CorrectCare after receiving various medical treatments while incarcerated. Since the cyberattack, the plaintiffs have been placed in collections after having their bank accounts, credit cards and other consumer accounts hacked, the suit says.
“CorrectCare’s data security obligations were particularly important given the substantial increase in cyber-attacks and/or data breaches preceding the date they disclosed the incident,” the suit states, adding that the FBI had even warned CorrectCare and other companies in the healthcare industry in August 2014 that hackers were targeting them.
The lawsuit seeks to represent any Georgia Department of Corrections inmates or pretrial detainee inmates whose private health information was compromised as a result of the data breach discovered by CorrectCare on or around June 6, 2022.
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