Managed Care of North America, Inc. (MCNA) has agreed to settle class action litigation stemming from a 2023 cybersecurity incident that affected around 8. 9 million individuals.
MCNA is a provider of dental insurance in Florida, and a third-party administrator of dental benefits in other states and Puerto Rico. MCNA’s subsidiaries include MCNA Dental, MCNA Insurance Company, and Healthplex. The cybersecurity incident was identified on March 6, 2023, and the forensic investigation determined that an unauthorized third party accessed its network between February 22, 2023, and March 7, 2023, and potentially viewed or obtained private information.
The investigation confirmed that sensitive data was exfiltrated from its network. The compromised data included names, addresses, telephone numbers, email addresses, birth dates, Social Security numbers, driver’s license numbers, government-issued ID numbers, health insurance information, Medicare/Medicaid ID numbers, group plan names and numbers, and information related to the dental and orthodontic care provided.
Notification letters started to be sent to the affected individuals on May 26, 2023. The defendant was named in 25 putative class action complaints, the first of which was filed on June 5, 2023. The lawsuits were materially and substantively identical and were consolidated into a single complaint.
The consolidated lawsuit alleged that MCNA was responsible for the data breach due to the failure to implement appropriate cybersecurity measures. The lawsuit asserted claims for negligence, negligence per se, breach of implied contract, unjust enrichment, violations of state consumer protection act statutes, and declaratory and injunctive relief. 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 MCNA denies any wrongdoing and sought to have the complaint dismissed. The motion was granted in part and denied in part, and an amended complaint – Crowe, et al. , v.
Managed Care of North America, Inc. , et al. – was filed in the United States District Court for the Southern District of Florida.
The defendant’s motion to deny the amended complaint was denied by the court. The parties attended mediation, and a settlement was negotiated that was acceptable to all parties. Under the terms of the settlement, MCNA will cover costs associated with the litigation, including attorneys’ fees up to $6,400,000 and litigation costs up to $1,313,000.
All class members are entitled to enroll in two years of medical data monitoring services, valued at $179. 40 per year per settlement class member. A claim may be submitted for reimbursement of documented, unreimbursed losses due to the data breach up to $2,500 per class member.
There is no alternative cash payment. Claims for reimbursement of losses have been capped at $2,500 per class member and will be paid pro rata if that cap is exceeded. MCNA has also agreed to make changes to its business practices and has implemented additional security measures to better protect sensitive data.
The deadline for objection, opting out, and submitting a claim is October 19, 2026. The final fairness hearing has been scheduled for November 16, 2026. The post Multi-Million Settlement Resolves Managed Care of North America Data Breach Litigation appeared first on The HIPAA Journal .
Originally published at hipaajournal.com
