Valley Oaks Health faced class action litigation over a June 2023 data security incident that affected 50,352 individuals. The consolidated lawsuit has recently been settled. Hackers accessed the Valley Oaks Health network between June 8, 2023, and June 13, 2023, and potentially obtained files containing names, Social Security numbers, driver’s license numbers, state ID numbers, credit/debit card numbers, access codes/passwords, biometric data, and other sensitive information.
Multiple class action lawsuits were filed in response to the data breach, which were consolidated into a single action – In re: Valley Oaks Data Incident Litigation – as the lawsuits had overlapping claims and classes. The consolidated lawsuit is pending in the Superior Court for Tippecanoe, Indiana. The consolidated lawsuit asserted claims for negligence, negligence per se, breach of implied contract, breach of fiduciary duty, and unjust enrichment, all of which are denied by Valley Oaks Health, which maintains there was no wrongdoing.
Valley Oaks Health sought to have the lawsuit dismissed; however, the motion to dismiss was rejected by the court. A full day of mediation did not result in a settlement; however, after several months of negotiations, a settlement was agreed to avoid the cost, delay, and risks of protracted litigation. The settlement has recently received preliminary approval from the court.
Valley Oaks Health has agreed to pay attorneys’ fees and expenses, settlement notification and administration costs, and service awards for the seven class representatives (total of $17,500). Attorneys’ fees are capped at $450,000. Claims may be submitted for reimbursement of up to $500 in documented, unreimbursed ordinary losses due to the data breach, including up to four hours of lost time at $20 per hour.
A claim may also be submitted for up to $5,000 as reimbursement for documented, unreimbursed extraordinary losses. If claims are not submitted for reimbursement of losses or lost time, a claim may be submitted for an alternative $40 cash payment. All class members are entitled to enroll in two years of medical data monitoring services.
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The final fairness hearing has been scheduled for December 10, 2026. The post Valley Oaks Health Data Breach Settlement Gets First Nod from Court appeared first on The HIPAA Journal .
Originally published at hipaajournal.com
