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A US healthcare firm has agreed to pay out millions of dollars to settle a class action lawsuit filed over a data breach.

According to the settlement administrator’s portal, Alabama Cardiology Group will pay $2.225 million to settle the lawsuit accusing it of negligence in the handling of patients’ data.

Under the settlement, individuals who provide documentation proving they suffered out-of-pocket losses directly linked to the data breach could receive up to $5,000.

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There will also be a flat cash payment that will be provided on a pro rata basis. Additionally, victims of the data breach are eligible to receive free credit monitoring services for two years.

The data breach, which impacted more than 280,000 people, happened in July of 2024 after an unauthorized user hacked Alabama Cardiology Group’s computer systems and accessed highly sensitive personal, medical and financial information.

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This includes full names, social security numbers, confidential medical information such as laboratory test results, treatments, prescriptions, dates of service as well as credit card, debit card and bank account information.

Claims must be submitted by March 6th of 2026. A final approval hearing will be held on March 20th of 2026.

Despite the settlement, no court of law has ruled either in favor of Alabama Cardiology Group or the data breach victims.

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FinSmart team

FinSmart is your go-to platform for "smart finance", where we break down complex financial topics simply and clearly. We help you navigate the financial world with confidence

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