Millions of Americans might be eligible for compensation due to a $35 million class action settlement linked to a Labcorp data breach. This settlement addresses claims resulting from a cyberattack at American Medical Collection Agency (AMCA), a third-party billing vendor used by Labcorp, which allegedly exposed sensitive personal and medical information of millions of patients.
Importance of the Settlement
Labcorp is a major player in diagnostic testing, conducting over 750 million tests annually. Healthcare data breaches are a growing concern, as medical records frequently contain sensitive data like Social Security numbers and payment details. The AMCA breach potentially exposed the information of about 7.7 million Labcorp patients, posing risks of identity theft and fraud.
The settlement offers cash compensation and free monitoring services to those affected. Eligible consumers need to submit a claim by September 3.
Lawsuit Details
“For the patients affected, this extends beyond the initial breach, as stolen medical and personal information can be used for identity theft and even medical identity fraud years after the incident.” – Alex Beene, University of Tennessee at Martin
The lawsuit claims Labcorp did not adequately protect patient information sent to AMCA, also known as Retrieval-Masters Creditors Bureau Inc., for billing purposes. AMCA faced a cybersecurity breach affecting systems with personal and health-related data. Affected consumers allegedly faced a higher risk of identity theft. Though Labcorp denies wrongdoing, they agreed to the $35 million settlement.
Labcorp Usage
Labcorp employs roughly 71,000 people and runs about 2,200 patient service centers. Globally, they perform over 750 million tests annually. The settlement could impact many Americans who have taken blood tests or other diagnostics.
Beene comments that the settlement underscores that healthcare entities and vendors are prime cybercrime targets, necessitating financial compensation for those affected.
Filing Claims and Deadlines
According to the settlement notice, eligibility criteria include:
- Personal information transmitted from Labcorp to AMCA.
- Information in AMCA systems impacted by the breach from August 2018 to March 2019.
The deadline to submit a claim is September 3. Claims filed after this date might not qualify for compensation.
Submitting a Claim
Eligible consumers can file a claim via the official settlement website. They have two options:
- Submit a claim for documented out-of-pocket breach-related losses.
- Request an alternative cash payment without documented losses.
If alerted that your info was in the AMCA breach, or you had a Labcorp account through AMCA during the affected time, check your eligibility before September. Many consumers discard breach notices, leading to unclaimed settlements.
Expected Compensation and Timeline
Eligible class members can select between options. The cash payment could vary based on the number of claims.
A final hearing is on August 20. Payments are made after the court’s final approval and resolution of appeals. Consumers might wait months for compensation, as a payment date is not yet announced.
What’s Next
September 3 is the crucial date for filing claims. After the deadline, the settlement administrator will review claims and determine payouts. In the broader industry, healthcare firms increasingly depend on external billing and tech providers, potentially amplifying the risk of data exposure during cyberattacks.