$6.49 million settlement in CorrectCare data breach class action lawsuit

If their information was compromised in the 2022 data breach, consumers could receive payments and other benefits from a $6.49 million settlement with CorrectCare.

The settlement will benefit individuals identified by CorrectCare as potentially at risk from the CorrectCare data breach discovered in July 2022 and disclosed in November 2022.

Plaintiffs in the class action lawsuit allege that CorrectCare failed to protect their information from hackers who gained access to confidential information in a 2022 data breach. That breach allegedly compromised data CorrectCare received while processing medical claims.

CorrectCare Integrated Health is a medical billing, claims processing and medical services provider specializing in correctional healthcare.

CorrectCare has not admitted wrongdoing but has agreed to pay $6.49 million to settle the data breach class action lawsuit.

Under the settlement with CorrectCare, consumers can receive up to $10,000 for documented losses related to the data breach. This reimbursement covers bank fees, communication fees, travel expenses, professional fees, credit costs, and fraud damages that occurred between the date of the data breach and August 27, 2024.

Class action participants who do not have documented expenses or do not wish to pursue a claim for reimbursement may instead receive an alternative cash payment. These payments vary depending on the number of valid claims submitted.

All California class members may receive an additional cash payment equal to one-half of the alternative cash payment amount, regardless of whether they seek reimbursement of costs or the alternative cash payment option.

The deadline for exclusion and appeal is August 30, 2024.

The final hearing to approve the settlement is scheduled for September 16, 2024.

To receive benefits from the CorrectCare settlement, class action members must submit a valid claim form by September 16, 2024.