Top Class Actions  |  September 28, 2022

Category: Closed Class Actions

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This settlement is closed!

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Data Breach concept, Magellan Health data breach
(Photo Credit: Black_Kira/Shutterstock)

Magellan Health agreed to a $1.43 million settlement to resolve class action lawsuit claims stemming from a 2019 phishing attack data breach that compromised thousands of patients’ information.

The Magellan Health lawsuit settlement benefits individuals who received a notification that their personal identifying information or personal health information may have been compromised in the 2019 Magellan Health data breach. This definition includes around 273,000 patients.

In November 2019, Magellan Health announced it had been the victim of a phishing scheme that jeopardized patient data. The phishing scheme, which occured in May 2019, allegedly compromised an employee’s email account. The breach allowed hackers to gain access to sensitive information such as names, Social Security numbers and health information of 273,000 patients — including 44,000 TennCare participants.

Affected TennCare patients quickly took legal action against Magellan, arguing the company could have prevented the data breach with reasonable cybersecurity measures. According to the lawsuit, Magellan shirked its obligations as a health care provider under the Health Insurance Portability and Accountability Act (HIPAA) by failing to secure patient data. 

The plaintiffs also challenged how Magellan handled the breach. Despite learning of the May 2019 breach in July 2019, Magellan allegedly failed to warn patients their information had been compromised until November 2019. Had they been warned earlier, the plaintiffs argue, they could have used these months to safeguard their data and remain vigilant for fraud. 

Magellan hasn’t admitted any wrongdoing but agreed to resolve these data breach allegations with a $1.43 million settlement.

Under the terms of the settlement, class members can receive a cash payment for out-of-pocket expenses. 

The settlement allows class members to claim up to $225 in ordinary out-of-pocket expenses including telephone charges, credit report costs, internet usage and up to two hours of lost time at a rate of $15 per hour. 

Class members may be able to collect ordinary expense reimbursement for credit monitoring and fraud-resolution services if they have sufficient documentation.

Class members may also qualify for payments of $2,500 if they suffered extraordinary out-of-pocket expenses such as fraud, identity theft and up to three additional hours of lost time at a rate of $15.

The deadline for exclusion and objection is Nov. 15, 2022. 

The final approval hearing for the Magellan Health data breach lawsuit settlement is scheduled for Dec. 2, 2022.

In order to receive settlement benefits, class members must submit a valid claim form by Dec. 15, 2022.

Who’s Eligible

The settlement benefits individuals who received a notification that their personal identifying information or personal health information may have been compromised in the 2019 Magellan Health data breach. This definition includes around 273,000 patients.

Potential Award

Varies

Proof of Purchase

Copy of receipts or other proof of purchases

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

12/15/2022

Case Name

Dearing v. Magellan Health Inc. et al., Case No. CV2020-013648, in the Superior Court of the State of Arizona in and for the County of Maricopa

Final Hearing

12/02/2022

Settlement Website
Claims Administrator

Magellan Claims Administrator
P.O. Box 5338
Portland, OR 97228-5338
info@MHDataSettlement.com
800-320-5709

Class Counsel

Joel Rhine
RHINE LAW FIRM PC

Defense Counsel

Paul Karlsgodt
BAKER HOSTETLER LLP

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One thought on Magellan Health data breach $1.43M class action settlement

  1. Heather says:

    Add me

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.