Magellan Health data breach $1.43M class action settlement – Top Class Actions

Magellan Health agreed to pay $1.43 million to resolve data breach claims stemming from a 2019 phishing attack that exposed data for thousands of patients.
The settlement benefits individuals who received a notification that their personal identifying information or personal health information may have been compromised in the 2019 Magellan Health data breach. This definition includes around 273,000 patients.
In November 2019, Magellan Health announced it had been the victim of a phishing scheme that jeopardized patient data. The phishing scheme, which occured in May 2019, allegedly compromised an employee’s email account. The breach allowed hackers to gain access to sensitive information such as names, Social Security numbers and health information of 273,000 patients — including 44,000 TennCare participants.
Affected TennCare patients quickly took legal action against Magellan, arguing the company could have prevented the data breach with reasonable cybersecurity measures. According to the lawsuit, Magellan shirked its obligations as a health care provider under the Health Insurance Portability and Accountability Act (HIPAA) by failing to secure patient data. 
The plaintiffs also challenged how Magellan handled the breach. Despite learning of the May 2019 breach in July 2019, Magellan allegedly failed to warn patients their information had been compromised until November 2019. Had they been warned earlier, the plaintiffs argue, they could have used these months to safeguard their data and remain vigilant for fraud. 
Magellan hasn’t admitted any wrongdoing but agreed to resolve these data breach allegations with a $1.43 million settlement.
Under the terms of the settlement, class members can receive a cash payment for out-of-pocket expenses. 
The settlement allows class members to claim up to $225 in ordinary out-of-pocket expenses including telephone charges, credit report costs, internet usage and up to two hours of lost time at a rate of $15 per hour. 
Class members may be able to collect ordinary expense reimbursement for credit monitoring and fraud-resolution services if they have sufficient documentation.
Class members may also qualify for payments of $2,500 if they suffered extraordinary out-of-pocket expenses such as fraud, identity theft and up to three additional hours of lost time at a rate of $15.
The deadline for exclusion and objection is Nov. 15, 2022. 
The final approval hearing for the Magellan Health data breach settlement is scheduled for Dec. 2, 2022.
In order to receive settlement benefits, class members must submit a valid claim form by Dec. 15, 2022.
The settlement benefits individuals who received a notification that their personal identifying information or personal health information may have been compromised in the 2019 Magellan Health data breach. This definition includes around 273,000 patients.
Varies
Copy of receipts or other proof of purchases
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
12/15/2022
Dearing v. Magellan Health Inc. et al., Case No. CV2020-013648, in the Superior Court of the State of Arizona in and for the County of Maricopa
12/02/2022
MHDataSettlement.com
Magellan Claims Administrator
P.O. Box 5338
Portland, OR 97228-5338
[email protected]
800-320-5709
Joel Rhine
RHINE LAW FIRM PC
Paul Karlsgodt
BAKER HOSTETLER LLP
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Magellan Health agreed to pay $1.43M to resolve data breach claims stemming from a 2019 phishing attack that exposed data for thousands of patients…. Read More
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