PracticeMax data breach $3M class action settlement

PracticeMax agreed to a $3 million class action lawsuit settlement to resolve claims that it failed to prevent a 2021 data breach that compromised patient data.

The settlement benefits individuals to whom PracticeMax sent a data breach notice informing them that their information may have been compromised in a cyberattack that occurred in early 2021 but was not announced until June 2022.

According to the class action lawsuit, PracticeMax failed to implement reasonable cybersecurity measures that could have prevented a 2021 data breach that compromised sensitive patient information such as Social Security numbers and insurance information. The plaintiffs also accuse PracticeMax of mismanaging the 2021 data breach by delaying the announcement — denying consumers the valuable time they needed to protect themselves from fraud and identity theft.

PracticeMax is a medical billing, coding and solutions company that partners with medical providers to increase revenue.

PracticeMax hasn’t admitted any wrongdoing but agreed to a $3 million settlement to resolve the data breach class action lawsuit.

Under the terms of the settlement, class members can receive up to $500 in reimbursement for ordinary data breach losses such as bank fees, credit expenses and up to three hours of lost time compensated at a rate of $25 per hour. 

Class members who experienced extraordinary losses as a result of the data breach can receive up to $3,500 in reimbursement for these losses as long as they were not already reimbursed by credit monitoring or identity theft insurance. These losses must be actual, documented losses that occurred between May 1, 2021, and Oct. 5, 2023. The class member must have made reasonable efforts to avoid or seek reimbursement for the loss.

All class members can receive two years of free credit monitoring and identity theft protection services through the settlement. These credit services provide class members with single-bureau credit monitoring and $1 million in identity theft insurance.

The deadline for exclusion and objection is Jan. 25, 2024.

The final approval hearing for the settlement is scheduled for March 14, 2024.

In order to receive settlement benefits, class members must submit a valid claim form by Feb. 24, 2024.

Who’s Eligible

Individuals to whom PracticeMax sent a data breach notice informing them that their information may have been compromised in a cyberattack that occurred in early 2021 but was not announced until June 2022.

Potential Award

$4,000

Proof of Purchase

To be able to submit a claim, the class member must have been identified as an individual whose private information was maintained on the PracticeMax database compromised during the data breach and must have received a settlement notice containing a unique ID. Class members submitting a claim for reimbursement of ordinary expenses must provide receipts, bank statements, reports or other third-party supporting documentation.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

02/24/2024

Case Name

Hogsed, et al. v. PracticeMax Inc., Case No. 2:22-cv-01261-DLR, in the U.S. District Court for the District of Arizona

Final Hearing

03/14/2024

Settlement Website

PracticeMaxDataSettlement.com

Claims Administrator

Hogsed et al. v. PracticeMax Inc.
c/o Claims Administrator
PO Box 6779
Portland, OR 97228-6779
877-399-1153

Class Counsel

Gary M Klinger 
MILBERG COLEMAN BRYSON PHILLIPS GROSSMAN PLLC

Raina C Borrelli 
TURKE & STRAUSS LLP

John A Yanchunis 
MORGAN & MORGAN

Terence R Coates 
MARKOVITS STOCK & DEMARCO LLC

William Federman 
FEDERMAN & SHERWOOD

Defense Counsel

Jon Kardassakis
LEWIS BRISBOIS BISGAARD & SMITH LLP