A settlement has been agreed to resolve a class action lawsuit against the Nashville, TN-based health plan administration service provider, Lucent Health Solutions. The litigation stems from an October 2023 phishing attack that allowed a threat actor to obtain credentials for an email account. Lucent Health Solutions said the threat actor only had a 90-minute window to access the account, and no evidence was found of data theft; however, the account contained the protected health information of approximately 37,000 individuals, including their names, dates of birth, Social Security numbers, and health, dental, and vision group and/or plan numbers.
The affected individuals were notified about the data breach in January 2025, 15 months after the breach occurred. A putative class action lawsuit was filed by plaintiff Royal Corralejo – Royal Corralejo v. Lucent Health Solutions, LLC Litigation – in the Circuit Court for Davidson County, Tennessee, which was removed to the United States District Court for the Middle District of Tennessee.
The lawsuit alleged that the defendant had failed to implement reasonable and appropriate cybersecurity measures, resulting in the data breach. The defendant denies all claims and contentions in the lawsuit and maintains that there was no wrongdoing. After considering the costs and risks associated with a trial and related appeals, all parties agreed to discuss settling the lawsuit.
During mediation on August 29, 2025, the material terms of a settlement were agreed by all parties, with no admission of liability or wrongdoing by the defendant. The settlement provides several benefits for the class members. Class members may submit a claim for reimbursement of documented, unreimbursed ordinary losses due to the data breach up to a maximum of $550 per class member, and a claim for up to $5,500 reimbursement for extraordinary losses from fraud or identity theft.
A claim may also be submitted for up to 5 hours of lost time at $25 per hour. Individuals who chose not to claim those benefits may instead claim a one-time cash payment of $80. Regardless of whether a claim is submitted for reimbursement of losses or the cash payment, class members may also claim a three-year membership to the CyEx Medical Shield Complete medical data monitoring service.
The defendant has agreed to pay up to $1,950,000 to resolve the lawsuit, which includes attorneys’ fees and expenses, settlement administration and notification costs, and a service award for the plaintiff. Should claims exceed that total, claims will be subject to a pro rata reduction. The deadline for objection and opting out of the settlement is August 21, 2026.
The deadline for submitting a claim is September 5, 2026, and the final fairness hearing has been scheduled for September 9, 2026. The post Lucent Health Solutions to Pay Up to 1. 95M to Settle Data Breach Litigation appeared first on The HIPAA Journal .
Originally published at hipaajournal.com
