The digital era, filled with its endless conveniences, also has its drawbacks, one of which is data breaches. A data breach at PracticeMax in 2021 led to a class-action lawsuit, a situation that required a significant payout. We’ll walk you through what happened, what the PracticeMax data settlement entailed, and what it means for those affected.
Practicemax Overview
Practicemax is a medical billing and practice management company. They work with healthcare providers to handle tasks like billing, coding, and revenue cycle management.
In early 2021, Practicemax experienced a significant data breach that compromised the private information of over 150,000 people. This incident led to a class action lawsuit and eventual settlement.
The Data Breach Incident
The Practicemax data breach occurred between April 17 and May 5, 2021. During this time, an unauthorized party gained access to Practicemax’s systems.
The breach exposed sensitive data like:
- Names
- Social Security numbers
- Addresses
- Dates of birth
- Health insurance details
If you received a notice from Practicemax about the breach, your information was likely compromised. This put you at risk for identity theft and fraud.
Practicemax Data Settlement Details
The Practicemax data breach settlement is valued at $3 million total. To be eligible, you must have received a notice indicating your private data was exposed.
Here’s what the settlement provides:
- Lost Time Compensation: You can claim up to $75 for time spent dealing with the breach. This covers up to 3 hours at $25 per hour.
- Ordinary Losses: Get reimbursed up to $500 for out-of-pocket expenses related to the breach. This includes things like bank fees, credit costs, and other charges. Be sure to document these losses.
- Extraordinary Losses: If you suffered identity theft due to the breach, you may claim up to $3,500. Again, documentation is key.
- Credit Monitoring: The settlement provides 2 years of single-bureau credit monitoring. This comes with $1 million in identity theft insurance.
The deadline to file a claim was February 24, 2024. If you didn’t file by then, you may be out of luck. The final settlement approval hearing is set for March 14, 2024.
The Class Action Lawsuit
The PracticeMax data breach took place between April 17 and May 5, 2021, and exposed sensitive information, including names, Social Security numbers, addresses, dates of birth, treatment and diagnosis information, health insurance details, and financial information.
The total settlement for this lawsuit is $3 million, and PracticeMax has not admitted any wrongdoing in the case. Instead, they agreed to the settlement to avoid ongoing litigation.
Legal Rights & Options For Individuals
Class members eligible for compensation are those who received a notice from PracticeMax indicating their private information may have been compromised. There are certain exclusions, such as individuals who request exclusion and those involved in the case. The compensation for affected individuals includes:
- Ordinary Losses: Up to $500 for documented out-of-pocket expenses, such as bank fees, credit monitoring services, and lost time (up to 3 hours at $25 per hour).
- Extraordinary Losses: Up to $3,500 for documented identity theft losses that occurred between May 1, 2021, and October 5, 2023.
- Credit Monitoring: Two years of single-bureau credit monitoring and identity theft protection with $1 million in insurance coverage.
Deadlines & Filing a Claim
If you received a data breach notice from PracticeMax, you could be eligible to file a claim. The compensation for the ordinary losses, which includes documented out-of-pocket expenses and lost time, can be up to $500. For extraordinary losses, which include actual, documented identity theft losses, the compensation can go up to $3500. Additionally, you can also avail two years of single-bureau credit monitoring and identity theft protection.
The deadline to file these claims is February 24, 2024. Filing a claim involves providing supporting documentation such as receipts and bank statements. It’s also necessary to include the unique ID located on the settlement notice.
The Final Approval Hearing
Before the settlement is officially finalized, there will be a Final Approval Hearing on March 14, 2024. This hearing allows the court to review the terms of the settlement and ensure it is fair to the class members.
After the hearing, if the settlement is approved, compensation will be distributed to class members who filed valid claims. This process may take a few months, but you will receive your payment as soon as possible.
It’s important to note that while PracticeMax agreed to this settlement, they have not admitted to any wrongdoing. The company settled to avoid the time and expense of ongoing litigation.
Conclusion
The Practicemax data breach highlights the risks we face in the digital world, where even trusted companies can be targeted by cyber-attacks. The 2021 breach exposed the personal information of over 150,000 people, leading to a class-action lawsuit and a $3 million settlement.
Those affected can receive compensation and credit monitoring to help protect against further issues. This incident shows the importance of strong data security and staying alert to protect our personal information. As technology continues to grow, everyone must take steps to prevent similar breaches in the future.
Also Read:
