American Esoteric Laboratories, the Memphis-based Mid-South division of Sonic Healthcare USA, has been named in several lawsuits. The largest is a multidistrict class action over a 2019 data breach at a third-party debt collector that exposed information on roughly 541,900 AEL patients. AEL has also defended employment discrimination suits in federal court and settled a federal enforcement action in 2013 for employing an individual excluded from federal healthcare programs.
The AMCA Data Breach Case
The most significant litigation against AEL grew out of a breach at the American Medical Collection Agency (AMCA), a debt collector AEL and other laboratories used to pursue unpaid patient balances. Between August 2018 and March 2019, an unauthorized user accessed AMCA’s systems and compromised personal and financial information belonging to at least 21 million Americans across multiple laboratory clients.1HIPAA Journal. Multistate Settlement Resolves 2019 American Medical Collection Agency Data Breach
AMCA notified AEL of the breach in May 2019. AEL estimated that about 541,900 of its patients were potentially affected. The exposed data included names, addresses, phone numbers, dates of birth, dates of service, balance information, and treatment provider information. For a smaller subset of roughly 7,400 patients, credit card or banking details were also exposed. AEL stated that Social Security numbers, laboratory results, and clinical histories were not involved. The company terminated its relationship with AMCA and set up a dedicated inquiry line for affected patients.2PR Newswire. American Esoteric Laboratories Notifies Patients of Data Security Incident
The breach produced more than a dozen class action lawsuits against AMCA and the laboratories that had sent it patient data. In July 2019, the U.S. Judicial Panel on Multidistrict Litigation consolidated the cases into In Re: American Medical Collection Agency, Inc., Customer Data Security Breach Litigation (MDL No. 2904) in the District of New Jersey, before Judge Madeline Cox Arleo. AEL is one of the named defendants.3GovInfo. In Re: American Medical Collection Agency, Inc., Customer Data Security Breach Litigation4U.S. Judicial Panel on Multidistrict Litigation. MDL-2904 Initial Transfer Order
The MDL has been resolved on separate tracks by defendant. No publicly announced settlement specific to the AEL track has been identified in the available record.
Employment Discrimination Suits
AEL has defended three employment cases in Tennessee federal courts.
Hackler v. American Esoteric Laboratories
Virginia Hackler sued AEL, Memphis Pathology Laboratory, and Sonic Healthcare Limited in April 2017 in the Eastern District of Tennessee, alleging violations of the Family and Medical Leave Act and the Americans with Disabilities Act.5PACER Monitor. Hackler v. American Esoteric Laboratories, Inc. The case went to a jury trial before Magistrate Judge H. Bruce Guyton in December 2019. The court granted AEL judgment as a matter of law on the FMLA interference claim, on economic compensatory damages other than back pay, and on front pay, but denied the motion as to the ADA claim, sending that portion to the jury. A verdict was returned on December 9, 2019, and the defendant filed a stipulation of dismissal on December 20, 2019, closing the case.6PlainSite. Hackler v. American Esoteric Laboratories, Inc.
Flynn v. Memphis Pathology Laboratory
In 2019, Katherine Flynn sued Memphis Pathology Laboratory, Sonic Healthcare USA, and AEL in the Western District of Tennessee, alleging race and color discrimination under Title VII and state law claims of retaliation, defamation, and breach of contract after being terminated following a workplace altercation. In September 2020, District Judge Sheryl H. Lipman dismissed the case without prejudice, finding Flynn had not alleged sufficient facts to support her Title VII claims and declining supplemental jurisdiction over the state law claims.7CaseMine. Flynn v. Memphis Pathology Laboratory
Adkerson v. American Esoteric Laboratories
Diane Adkerson filed an ADA discrimination suit against AEL in April 2026 in the Western District of Tennessee. As of late May 2026, AEL had filed its answer and the case remained in its early stages.8PACER Monitor. Adkerson v. American Esoteric Laboratories, Inc.
The 2013 Federal Enforcement Settlement
In October 2013, AEL agreed to pay $6,780.63 to resolve allegations by the U.S. Department of Health and Human Services Office of Inspector General that it had employed a person the company knew or should have known was excluded from participating in federal healthcare programs, in violation of the Civil Monetary Penalties Law. The matter arose from AEL’s own self-disclosure to the OIG.9HHS OIG. American Esoteric Laboratories Agreed to Pay $6,000 for Allegedly Violating the Civil Monetary Penalties Law