Managed Care of North America, Inc. (MCNA) has agreed to settle class action litigation arising from a 2023 cybersecurity incident that affected approximately 8.9 million individuals.
MCNA identified the cybersecurity incident on March 6, 2023. A forensic investigation determined that an unauthorized third party accessed MCNA’s network between February 22, 2023, and March 7, 2023, and potentially accessed or stole private information. The investigation confirmed the theft ofsensitive data from the network.
MCNA provides dental insurance in Florida and management of dental benefits in other states and Puerto Rico. Its subsidiaries include MCNA Dental, Healthplex, and MCNA Insurance Company.
The compromised information included names, telephone numbers, addresses, email addresses, birth dates, driver’s license numbers, Social Security numbers, government-issued ID numbers, Medicare/Medicaid ID numbers, group plan names and numbers, medical insurance information, and information associated with dental and orthodontic care. In compliance with HIPAA Breach Notification laws, MCNA began sending notification letters to affected individuals on May 26, 2023.
Class Action Litigation
MCNA was named in 25 putative class action complaints. The first complaint was filed on June 5, 2023. Because the lawsuits had identical substance, they were combined into a single complaint.
The combined lawsuit alleged that MCNA was responsible for the data breach because it failed to implement appropriate cybersecurity measures. The lawsuit asserted claims involving breach of implied contract, unjust enrichment, negligence, negligence per se, declaratory and injunctive relief, and violations of state consumer protection act statutes.
MCNA denied wrongdoing and sought dismissal of the complaint. The motion was granted in part and denied in part. An amended complaint, identified as Crowe, et al., v. Managed Care of North America, Inc., et al., was filed in the United States District Court for the Southern District of Florida. The court denied the defendant’s motion concerning the amended complaint.
The parties subsequently attended mediation and negotiated a settlement that was acceptable to all parties.
Settlement Terms
Under the settlement, MCNA will cover litigation costs, including attorneys’ fees of up to $6,400,000 and litigation costs of up to $1,313,000.
Each class member is entitled to enroll in two years of medical data monitoring services. The services are valued at $179.40 per year per settlement class member.
Class members may claim a refund for documented, unreimbursed losses associated with the data breach. Reimbursement is capped at $2,500 per class member. There is no alternative cash payment. If claims exceed the $2,500 cap, payments will be made on a pro rata basis.
MCNA has also agreed to changes in its business practices and has implemented additional security measures to better protect sensitive data.
The deadline for objections, opting out, and submitting a claim is October 19, 2026. The final fairness hearing is scheduled for November 16, 2026.