Calibrated Healthcare Systems, LLC, and Calibrated Healthcare, LLC, decided to resolve a consolidated class action lawsuit related to a February 2024 security incident that compromised patient information, and the proposed settlement has received preliminary court approval.
February 2024 Security Incident
Calibrated Healthcare identified a security incident on February 26, 2024. The company’s investigation determined that unauthorized access to its network occurred between February 25, 2024, and February 26, 2024.
The investigation did not confirm that data was stolen. Calibrated Healthcare stated that data theft was considered likely.
Information affected by the incident included names, birth dates, medical diagnosis and treatment details, and medical insurance information.
Data Breach Notification
The security incident was reported to the U.S. Department of Health and Human Services Office for Civil Rights as affecting the protected health information of 6,890 individuals.
Affected individuals were notified on or around August 2, 2024.
Consolidated Class Action Lawsuit
Calibrated Healthcare faced two putative class action lawsuits after the security incident. The lawsuits were Adams v. Calibrated Healthcare Systems, LLC, et al. and Holden v. Calibrated Healthcare, LLC. The cases were consolidated in the United States District Court for the Central District of California, Southern Division, under the case Adams, et al. v. Calibrated Healthcare Systems, LLC, et al. The consolidated complaint alleged that the defendants were negligent and that the security incident should have been prevented.
The lawsuit asserted claims for negligence, privacy violation, breach of contract, breach of implied contract, unjust enrichment, violations of the California Consumers Legal Remedies Act., and violations of the California Unfair Competition Law for unlawful, fraudulent, and unfair business practices.
Defendants Deny Liability
The defendants deny the allegations made in the lawsuit.
They deny claims of fault, wrongdoing, and liability.
The parties participated in mediation. A settlement was not reached during mediation. Settlement discussions continued after mediation, and the parties later reached an agreement that was acceptable to both sides.
The proposed settlement has received preliminary approval from the court.
Settlement Terms
The settlement class consists of 34,562 individuals.
The settlement website states that eligible class members may receive two years of medical monitoring and identity theft insurance services.
The settlement also provides for a cash payment estimated to range from $21.44 to $28.68 per class member. The amount depends on the number of valid claims submitted.
Eligible class members may seek reimbursement for up to 7 hours of documented lost time associated with the security incident at a rate of $25 per hour, with a maximum payment of $175 per class member.
The settlement also allows claims for reimbursement of documented losses that are fairly traceable to the security incident up to a maximum of $5,000 per class member.
The number of individuals included in the settlement class differs from the number of individuals reported to the U.S. Department of Health and Human Services Office for Civil Rights. The Office for Civil Rights breach portal reported the incident as impacting the protected health information (PHI) of 6,890 individuals, while the settlement class includes 34,562 individuals.
Claims must be submitted by July 9, 2026. The final fairness hearing is scheduled for August 13, 2026.
