$2.35 Million Settlement Agreed to Resolve Cornerstone Specialty Hospitals Data Breach Lawsuit
Cornerstone Specialty Hospitals agreed to a $2.35 million settlement following a 2023 data breach affecting nearly 485,000 individuals.Summary
Cornerstone Specialty Hospitals has reached a $2.35 million settlement to resolve a class action lawsuit stemming from a December 2023 cyberattack. The breach potentially compromised the data of 484,957 individuals, including sensitive information like Social Security numbers, financial details, and medical records. The lawsuit alleged negligence in data security and delayed breach notifications, which were sent over six months after the incident. While Cornerstone denies any wrongdoing, they agreed to the settlement to avoid further legal costs. The settlement fund will cover legal fees and provide benefits to affected class members, including credit monitoring, identity theft protection, and reimbursement for documented losses – up to $10,000 for extraordinary losses and $2,500 for ordinary losses. Individuals whose Social Security numbers were compromised are eligible for enhanced benefits and a larger pro rata cash payment. The deadline for claims is May 8, 2026, with final approval scheduled for May 14, 2026.
(Source：The Hipaa Journal)