Integrated health system Robeson Health Care Corporation, based in Pembroke, North Carolina, has decided to resolve a class action lawsuit prompted by a cyberattack in February 2023. Allegedly, hackers breached the provider’s network, compromising the protected health information (PHI) of 62,627 persons.
Hackers acquired access to its system on or about February 21, 2023, and possibly viewed or stole PHI, including names, birth dates, Social Security numbers, medical record numbers, diagnosis and treatment data, Medicaid/Medicare numbers, prescription details, health insurance data, and other sensitive information. The impacted people started receiving breach notification letters on April 21, 2023.
In May 2023, Robeson Health Care Corp. had three lawsuits filed against it because of the data breach. Plaintiffs Julianna McKenzie, Ronnie McGriff, and Judith Hammonds filed a lawsuit in the United States District Court for the Eastern District of North Carolina. The lawsuits claimed negligence for failing to use acceptable and proper safeguards to protect its system and secure patient information from unauthorized access. Robeson Health Care Corp. rejects all allegations in the lawsuit, as well as the allegations of wrongdoing and liability. Because ongoing litigation would probably be costly and prolonged, all parties consented to make a deal on a suitable settlement. The settlement, found to be reasonable by all parties, already received preliminary approval from the Superior Court of the State of North Carolina for the County of Robeson.
According to the terms of the settlement, Robeson Health Care Corp. has decided to pay class members their benefits, which will be limited to $750,000. Class members could file a claim for as much as $2,500 for refund of recorded, unreimbursed out-of-pocket costs that came about because of the data breach. Attorneys’ charges and legal costs are limited to $250,000. The three plaintiffs will be given a service award worth $1,500.
Another option is for class members to file for a $50 cash payment, which Robeson Health Care Corp. will pay pro rata after paying all claims. The cash payments could be more or less, depending on the number of claims. Additionally, class members can avail of single-bureau credit monitoring services for two years. The last date for filing objections to and exclusion from the settlement is June 23, 2025. The schedule of the final approval hearing is July 21, 2025. The due date for filing claims is August 6, 2025. For more information about the settlement, visit rhccdataincidentsettlement.com.