A pediatric healthcare firm accused of potentially exposing private information of its patients and employees after a cyberattack at its IT services provider has jointly agreed with the outsourcer to pay millions of dollars to settle a class action lawsuit.
According to the settlement administrator’s portal, Boston Children’s Health Physicians and IT services provider ATSG have reached a $5.15 million settlement over the potential data breach arising from the cyberattack that occurred in the third quarter of 2024.
Private information belonging to hundreds of thousands of people was potentially impacted by the cyberattack, according to the class action lawsuit.
“The Action alleges that on or about September 9, 2024, Defendant BCHP learned that Defendant ATSG’s computer network was targeted in a cyberattack by an unknown third party. Plaintiffs allege that this cyberattack may have exposed Private Information belonging to approximately 918,000 of Defendant BCHP’s patients and employees housed on a computer network provided by ATSG for BCHP to use.”
Class members who file documented claims for losses from the data breach will receive up to $5,000. An estimated $100 cash payment will be handed out on a pro rata basis to class members with no supporting documentation. In addition to the cash payments, the settlement also provides for two years of medical identity monitoring, real-time alerts and up to $1,000,000 in insurance coverage for medical identity theft.
Claims for the cash payments must be made by November 10th.
Despite agreeing to settle, Boston Children’s Health Physicians, which primarily operates in New York and Connecticut, and ATSG “deny any wrongdoing whatsoever” and only settled to avoid the “cost and risk of a trial and related appeals, while providing benefits to Settlement Class Members.”
The final approval hearing for the settlement will be held on December 10th.
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