A proposed class action settlement of $6.49 million has been reached in response to a major data breach involving CorrectCare Integrated Health, LLC. This breach, which exposed personal information of individuals whose medical claims were handled by the company, was detected on July 6, 2022, and publicly disclosed on November 28, 2022. The settlement aims to compensate affected individuals, allowing them to claim up to $10,000 for documented losses.
Details of the Data Breach
On or around July 6, 2022, CorrectCare Integrated Health, LLC, a company specializing in medical claims processing, experienced a data breach involving unauthorized access to a server containing sensitive personal information. This compromised data may have included names, addresses, Social Security numbers, medical records, and other personal details of individuals whose claims were processed by the company.
While CorrectCare denies any wrongdoing or liability, the company has agreed to settle the litigation on a class-wide basis to address the breach’s impact. The settlement is designed to reimburse those affected by the incident.
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Compensation Options
Eligible individuals who receive notice of the settlement can choose from three compensation options:
- Reimbursement for Out-of-Pocket Losses: Claimants can be reimbursed for expenses directly related to the breach, including bank fees, communication costs, travel expenses, professional fees, credit expenses, and damages from fraud incurred between the breach date and August 27, 2024.
- Alternative Cash Payment: Individuals may opt for a direct cash payment instead of reimbursement for out-of-pocket expenses.
- California Additional Cash Payment: Residents of California identified on the Class List who are eligible for this payment will receive it upon submitting a valid claim.
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How to Participate
To participate in the settlement, affected individuals must adhere to the following deadlines:
- Submit a Claim Form: The claim form must be submitted or postmarked by August 27, 2024, to be eligible for a payment.
- Opt-Out: Those wishing to pursue separate legal action must mail their exclusion requests, postmarked by August 30, 2024.
- Object to the Settlement: Written objections must be mailed and postmarked by August 30, 2024. Affected individuals may also attend the final approval hearing on September 16, 2024, to express their views on the settlement’s fairness.
Next Steps and Final Approval
The court will decide on the settlement’s approval. If approved and any appeals are resolved, payments to class members will begin. Affected individuals should carefully review the settlement notice, which outlines their legal rights and options, including how to submit claims, opt out, or object to the settlement.
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Broader Implications
This settlement reflects a growing trend in addressing data breaches through significant financial compensation. Data breaches are increasingly common, affecting numerous industries and exposing sensitive personal information. For instance, other recent settlements include a $5.5 million agreement related to a data breach involving wine and spirits and a $2.5 million settlement with Walmart over employee compensation issues. These cases underscore the importance of robust data security measures and the consequences of failing to protect personal information.
Conclusion
The proposed $6.49 million settlement with CorrectCare Integrated Health, LLC, provides affected individuals with the chance to claim up to $10,000 for documented losses due to the data breach. It is crucial for those impacted to act promptly and meet the deadlines to ensure their compensation and legal rights are preserved. This settlement highlights the ongoing need for effective data security practices and the significant impacts of data breaches on individuals and companies.
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Joeal Bright is a committed journalist at WVPrepBB.com, focusing on USA and crime news. With a knack for in-depth reporting and a dedication to delivering accurate and timely information, Joeal keeps readers informed about crucial national events and crime stories. His work on WVPrepBB.com is essential for those seeking comprehensive coverage and insightful analysis of current events in the United States.
