$3M AvMed Data Breach Class Action Settlement Gets Final Approval

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A Florida federal judge has given final approval to a $3 million class action settlement over a 2009 data breach involving the theft of laptop computers from AvMed Inc. This data breach settlement is unique because it allows Class Members who did not actually suffer identity theft to claim funds.

The class action lawsuit, filed in 2010 by Juana Curry and William Moore, claimed AvMed’s inadequate security safeguards led to the theft of unencrypted laptop computers that contained the names, Social Security numbers and health information of more than 1 million AvMed customers. The plaintiffs blamed the theft on AvMed’s failure to implement “basic security procedures” to protect their customers’ sensitive information.

Curry alleged that 10 months after the laptop theft, bank accounts and credit cards had been opened in her name. She also claims that her home address had been changed with the U.S. Postal Service. Moore claims that an E-Trade account was opened in his name 14 months after the breach.

The AvMed data breach settlement, which was preliminarily approved on Oct. 25, 2013, will provide monetary benefits to customers who suffered identity theft, and give $10 to customers for each year they purchased insurance with the customers, up to a maximum of $30.

Class Members of the AvMed health data breach settlement include all current and former AvMed customers who, prior to December 2009, paid AvMed for insurance and whose sensitive personal information was contained on the laptops that were stolen in December 2009.

Under the terms of the class action settlement, AvMed agreed to increase security awareness and implement training programs for its employees. The company also agreed to add security programs to its company laptops, use encryption technology to secure data and upgrade its security at all AvMed facilities.

Now that the class action settlement has been granted final approval, Class Members will have 30 days to submit a Claim Form for benefits. For more information about how to file a claim for the AvMed data breach settlement, click here or visit the AvMed settlement website.

The AvMed health data breach settlement may have huge implications as the number of reported data breaches continues to increase. Most data breach lawsuits are dismissed at an early stage because plaintiffs are typically unable to prove that the breach caused them to suffer actual damages. The AvMed class action settlement is unique because Class Members who have not suffered identity theft are eligible to collect funds.

The plaintiffs are represented by Jay Edelson, Ari J. Scharg and Benjamin S. Thomassen of Edelson LLC, and Edmund A. Normand of Wooten Kimbrough & Normand PA.

The AvMed Health Data Breach Class Action Lawsuit is Resnick, et al. v. AvMed Inc., Case No. 1:10-cv-24513, in the U.S. District Court for the Southern District of Florida.