American Addiction Centers data breach affected 400K+, class action claims

American Addiction Centers data breach class action overview:

• Who: Two American Addiction Centers patients are suing the company.
• Why: The plaintiffs claim the company’s negligence led to a data breach that compromised their private information.
• Where: The American Addiction Centers data breach class action was filed in a Tennessee federal court.

A new class action lawsuit accuses American Addiction Centers of being responsible for a data breach that impacted more than 422,000 people. 

Two plaintiffs filed the class action complaint against American Addiction Centers Inc. on Dec. 30 in a Tennessee federal court, alleging negligence.

The American Addiction Centers class action lawsuit alleges American Addiction Centers failed to secure personal and medical information, including names, Social Security numbers, and health insurance details for its patients.

The breach, discovered by American Addiction Centers on Sept. 26, 2024, exposed patients’ protected health information and personally identifiable information to cybercriminals, the plaintiffs allege. 

According to the class action lawsuit, the company failed to inform affected individuals until nearly three months later, on Dec. 23, 2024.

“Defendant disregarded the rights of Representative Plaintiffs and Class Members by intentionally, willfully, recklessly, and/or negligently failing to take and implement adequate and reasonable measures to ensure that Representative Plaintiffs’ and Class Members’ PHI/PII was safeguarded,” the complaint says.

American Addiction Centers data breach shows lax security measures, plaintiffs allege

The plaintiffs claim that American Addiction Centers did not follow industry standards or comply with the Health Insurance Portability and Accountability Act, which requires “appropriate safeguards” to protect patient information and mandates that organizations maintain the confidentiality of electronic health records.

This first plaintiff, whose personal data was compromised, described the ordeal as distressing. After receiving a notification letter from AAC, she spent significant time addressing the breach, including changing passwords, securing her network, and monitoring accounts for suspicious activity, the class action lawsuit states.

As a result, the plaintiffs are looking to represent anyone in the United States who was affected by the breach. They are suing for negligence, breach of implied contract and fiduciary duty, and are seeking certification of the class action, damages, fees, costs, a jury trial and a court order forcing American Addiction Centers to improve its data security practices.

American Addiction Centers is one of a number of companies that have recently faced class action lawsuits in the wake of a data breach. In November, Duke Energy Carolinas was hit with a class action alleging it failed to properly safeguard and secure the sensitive information of its customers during a May 2024 data breach.

What do you think of the allegations in this American Addiction Centers class action? Let us know in the comments. 

The plaintiffs are represented by R. Scott Pietrowski, Sonjay Singh and Tyler J. Bean of Siri & Glimstad LLP and Daniel Srourian of Srourian Law Firm P.C.

The American Addiction Centers class action is Deboer, et al., v. American Addiction Centers Inc., Case No. 3:24-cv-01510 in the U.S. District Court for the Middle District of Tennessee.

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