Patients Receiving Up To $5,000 After Healthcare Firm Breached, Exposing Records of 426,536 Americans

A US orthopedic and neurosurgery practice has agreed to a multi-million dollar class action settlement stemming from a security breach that happened in February of 2024.

The incident compromised the sensitive information of 426,536 patients of Rebound Orthopedics & Neurosurgery, including their names, dates of birth, medical information, health insurance information, Social Security numbers, financial account information, driver’s license numbers and passport numbers.

The consolidated lawsuit alleges the Vancouver, Washington-based healthcare firm failed to implement reasonable and appropriate cybersecurity measures. Rebound denies any wrongdoing but all parties eventually agreed to settle.

The terms of the settlement provide that Rebound will create a $2.5 million fund that will cover the costs of settlement as well as the cash payment and benefits for affected individuals.

“All Settlement Class Members are eligible to enroll in two years of CyEx Medical Shield Complete. This comprehensive service comes with $1 million of medical and identity theft insurance and contains real-time alerts and victim assistance.”

The settlement offers two options for cash payments. Those who have documented and can show proof of their actual losses between February 1st, 2024 and May 28th, 2026 can claim up to $5,000.

“This benefit covers out-of-pocket expenses like: losses because of identity theft or fraud, fees for credit reports, credit monitoring, or freezing and unfreezing your credit, cost to replace your IDs and postage to contact banks by mail.”

Those who cannot provide proof or explanation can opt for a one-time cash payment of about $75, which may be adjusted depending on the number of people who file a claim.

The deadline for the submission of claims is on May 28th.

Generated Image: Midjourney