Laboratory Services Cooperative, a Seattle, Washington-based nonprofit clinical laboratory that provides diagnostic and analytical testing services for Planned Parenthood affiliates in 31 U. S. states, has agreed to settle class action litigation arising from a 2024 data breach that affected approximately 1.
6 million current and former patients and employees. The data breach On October 27, 2024, Laboratory Services Cooperative identified unauthorized network activity. The forensic investigation determined that a hacker accessed its network and removed data.
The compromised information includes names, dates of birth, contact information, medical information, claims information, billing information, health insurance information, Social Security numbers, and other government- and state-issued identifiers. The notification letters did not state how long hackers had access to its network. The affected individuals started to be notified on or around April 10, 2025.
The HHS’ Office for Civil Rights was notified on November 20, 2024. The OCR breach portal still lists the incident as affecting 501 individuals. The litigation Get The FREE HIPAA Compliance Checklist Immediate Delivery of Checklist Link To Your Email Address Please enable JavaScript in your browser to complete this form.
Business Email * Name * First Last Number * Company Name * Get Free Checklist Please Enter Correct Email Address Your Privacy Respected HIPAA Journal Privacy Policy Several class action lawsuits were filed in response to the data breach, which were consolidated as they asserted similar claims and had overlapping classes. The consolidated lawsuit – In re Laboratory Services Cooperative Data Breach Litigation – is pending in the U.
S. District Court for the Western District of Washington. The plaintiffs allege that the data breach occurred because the defendant’s data security systems were completely inadequate, and the company failed to follow industry-standard cybersecurity practices.
Further, the breach notifications were delayed, and the notices failed to include important information about the breach. The lawsuit asserted claims for negligence, breach of contract, unjust enrichment, invasion of privacy, and declaratory and injunctive relief. The defendant disagrees with the claims and contentions in the lawsuit, including claims of wrongdoing, fault, and liability.
The parties agreed to a settlement to avoid the cost, delay, distraction, and risks associated with a trial and related appeals. The settlement Laboratory Services Cooperative has agreed to establish a $6,100,000 settlement fund to resolve the litigation, from which costs and expenses will be deducted, and the remaining funds will be used to pay benefits to the class members.
Costs and expenses include attorneys’ fees (up to one-third of the settlement fund) and expenses, notice and settlement administration costs, and service awards of up to $2,500 for the class representatives. Class members are entitled to submit a claim for reimbursement of documented, unreimbursed losses due to the data breach, a pro rata cash payment, and two years of credit and medical information monitoring services.
Reimbursement claims are capped at $5,000 per class member, and the pro rata cash payments will be up to $1,000 per class member but may be lower depending on the number of claims received. Cash payments will be affected by the number of reimbursement claims and the number of individuals signing up for credit monitoring services. Laboratory Services Cooperative has made changes to its business practices and implemented security enhancements to reduce the risk of similar incidents in the future.
The deadline for objection and exclusion is October 26, 2026. The deadline for filing a claim is November 24, 2026, and the final fairness hearing is scheduled for January 4, 2027. The post Laboratory Services Cooperative Agrees to Pay $6.
1 Million to Settle Data Breach Litigation appeared first on The HIPAA Journal .
Originally published at hipaajournal.com
