Cummins Behavioral Health Systems has agreed to a $2.1 million class-action settlement offering financial compensation and services to individuals affected by a 2023 data breach.
What happened
In September 2023, Cummins Behavioral Health Systems Inc. experienced a data breach that compromised sensitive personal information. Now, thousands of affected Americans may be eligible to receive one-time payments from a $2.1 million settlement to cover losses incurred due to the breach. This settlement is part of a class-action lawsuit, Ham, et al. v. Cummins Behavioral Health Systems Inc., in which plaintiffs alleged that the company failed to implement adequate security measures to prevent unauthorized access to consumer data.
Cummins Behavioral Health has not admitted to any wrongdoing but has agreed to settle and provide compensation to potentially impacted individuals. Claimants who submit appropriate documentation can receive payments of up to $5,500, with lesser amounts available for other verified losses and time spent dealing with the breach.
Related: The economic reality of cybersecurity attacks in healthcare
By the numbers
- Settlement amount: $2.1 million
- Maximum individual payment: $5,500
- Extraordinary losses (documented): Up to $5,000
- Ordinary losses (documented): Up to $500
- Lost time reimbursement: $75
- No documented expenses: $65 cash payment or a free trauma screening
- Claim deadline: November 20, 2024
See also: Higher HIPAA penalties announced
What was said
According to the official Settlement Website, persons whose personal information was affected by the 2023 security incident at Cummins Behavioral Health Systems, Inc. may be eligible for compensation. The website states: “A Settlement has been reached in a class action against Cummins Behavioral Health Systems, Inc. (‘Defendant’) relating to a data security incident involving Defendant’s computer systems that Defendant publicly reported on or about August 2023 (the ‘Security Incident’). The computer systems affected by the Security Incident contained Personal Information of certain individuals.”
While the plaintiffs allege that Cummins Behavioral Health Systems failed to prevent the data breach through adequate security measures, the company “denies that it did anything wrong or has any liability relating to Plaintiffs’ claims.”
The Settlement provides benefits of up to $2,100,000, offering affected class members options such as reimbursement for losses, compensation for lost time, or alternative cash payments, along with a free trauma screening option.
The website emphasizes: “Your legal rights are affected regardless of whether you do or do not act. Read this website carefully.”
Why it matters
Data breaches have far-reaching consequences, with victims often facing identity theft, unauthorized financial transactions, and emotional distress. This settlement addresses the financial impact and stresses the need for stronger data protection measures among companies handling sensitive information.
See also: HIPAA Compliant Email: The Definitive Guide
FAQs
What is a data breach?
A data breach occurs when unauthorized individuals gain access to sensitive information, such as personal or financial data, stored by an organization. Breaches can result from hacking, phishing, or poor cybersecurity practices.
What is a class-action settlement in a data breach case?
A class-action settlement is a legal agreement to resolve a lawsuit brought on behalf of a group of people (class members) affected by the same incident, such as a data breach. The settlement often includes compensation for losses, credit monitoring, or other remedies.
Tshedimoso Makhene
