Modernizing Medicine is going to set up a $2,999,750 fund to settle the class action litigation associated with a July 2025 cybersecurity breach that impacted 198,795 individuals.
Modernizing Medicine based in Boca Raton, Florida, offers cloud-based, AI-driven software programs and EHR systems to healthcare companies. It suffered a cybersecurity incident in July 2025, where a criminal hacker accessed two Modernizing Medicine computer servers from July 9, 2025 to July 10, 2025. The company used the servers to convert data from old electronic health record platforms to the present Modernizing Medicine EHR platform.
The breached data included names, birth dates, phone numbers, addresses, email addresses, some Social Security numbers, medical insurance details, and medical records.
In compliance with HIPAA laws, Modernizing Medicine sent notification letters to affected persons on or around October 17, 2025. The company submitted the breach report to the HHS Office for Civil Rights indicating that 198,795 individuals were impacted.
Class Action Litigation Against Modernizing Medicine
On November 19, 2025, plaintiff Patricia Cavallaro-Kearins filed a class action lawsuit against Modernizing Medicine in the U.S. District Court for the Southern District of Florida. The Cavallaro-Kearins v. Modernizing Medicine, Inc. lawsuit claimed that the data security incident happened because of inadequate cybersecurity measures. The claims included negligence, invasion of privacy, breach of implied contract, breach of fiduciary duty, and unjust enrichment.
Modernizing Medicine did not admit to wrongdoing and liability.
The parties opted for an early settlement of the litigation. They took part in a mediation on April 2, 2026, and agreed upon the material terms of a settlement.
Settlement Terms
The court already provided preliminary approval of the finalized settlement. Modernizing Medicine consented to create a $2,999,750 settlement fund for class members. The fund will cover attorneys’ fees and expenses, settlement management costs, and service awards, then will pay class members’ benefits.
Class members can claim a membership to the CyEx Medical Shield Complete medical data monitoring service for two years. They could also choose either of two cash payment options. The first option reimburses a class member’s documented expenses up to $5,000 that are connected to the data breach. The second option gives a pro rata cash payment of approximately $75 per class member. The amount may be higher or lower subject to the number of valid claims filed.
Claims need to be filed by November 2, 2026. Individuals have until October 19, 2026 to object to the settlement or opt out. The final fairness hearing is on November 17, 2026.