Cardiovascular Consultants in Arizona agreed to a $3,850,000 settlement to resolve a class action lawsuit related to a 2023 data breach affecting 484,000 individuals.
Incident Overview
The data breach was detected on September 29, 2023. A forensic investigation determined that unauthorized access to the network occurred two days earlier. Files containing patient information were exfiltrated prior to the deployment of ransomware that encrypted systems.
The compromised data included patient and guarantor information. Data elements involved names, mailing addresses, dates of birth, emergency contact information, driver’s license numbers, Social Security numbers, state ID numbers, insurance policy details, guarantor information, and diagnosis and treatment information, along with other data from medical or billing records.
Notification letters were issued on December 2, 2023.
Litigation Details
Michele Stroup and Georgios Asimakopoulos filed a class action complaint in December 2023. Additional plaintiffs joined the case as class representatives. The Stroup, et al. v. Cardiovascular Consultants Ltd. case was filed in the Superior Court of the State of Arizona, County of Maricopa.
The defendant denied all allegations presented in the lawsuit and filed a motion to dismiss. The court granted the motion in part and denied it in part. An amended complaint was subsequently filed.
The claims asserted in the lawsuit included negligence, negligence per se, unjust enrichment, breach of fiduciary duty, breach of implied contract, violation of the Arizona Consumer Fraud Act, and invasion of privacy. The defendant denied each of these claims.
The complaint also alleged that the HIPAA-covered entity failed to implement reasonable security protections for its information systems and databases. It further alleged deficiencies in the handling of the breach, including delays in issuing notifications.
Settlement Terms
The parties reached a settlement following mediation. The agreement allows both sides to avoid continued litigation expenses and the uncertainty associated with trial proceedings.
The settlement establishes a fund of $3,850,000. This fund is allocated to cover attorneys’ fees, litigation expenses, notice and administration costs, and service awards for class representatives.
Remaining funds are designated for distribution to class members. Eligible individuals may receive two years of medical monitoring. They may also submit claims for reimbursement of documented, unreimbursed out-of-pocket losses up to $5,000 per person. A pro rata cash payment is also available, estimated at $75 per class member, subject to variation depending on the number of valid claims submitted.
Court Approval and Deadlines
The court has granted preliminary approval of the settlement. A final fairness hearing is scheduled for August 18, 2026. Class members who intend to exclude themselves from the settlement or object to it must act by June 1, 2026. The deadline for filing claims is July 1, 2026.