The CareCentrix lawsuit most people are searching for is the $6.3 million class action settlement tied to the 2019 American Medical Collection Agency data breach, which exposed information belonging to roughly 420,000 people whose home health benefits ran through CareCentrix. That case is closed and payments have been issued. Separately, CareCentrix has faced two wage-and-hour suits from its own workers, a still-active Florida class action over medical device billing, and a trade secrets dispute it filed against a competitor and then dropped.1AMCA Data Settlement – CCX. AMCA CareCentrix Data Breach Settlement
The AMCA Data Breach Settlement
Between August 1, 2018, and March 30, 2019, an unauthorized user was inside the systems of Retrieval-Masters Creditors Bureau, better known as the American Medical Collection Agency. AMCA collected debts on behalf of healthcare companies, and the intruder pulled out Social Security numbers, payment card information, and, in some cases, the names of medical tests and diagnostic codes. Across all of AMCA’s clients, more than 21 million Americans were affected. AMCA announced the breach in July 2019 and filed for bankruptcy the month before, citing breach-related costs.2HIPAA Journal. Multistate Settlement Resolves American Medical Collection Agency Data Breach3North Carolina Department of Justice. Attorney General Josh Stein Announces Settlement Over AMCA Data Breach
About 420,000 of those affected were people whose benefits had been coordinated through CareCentrix. Their claims, along with claims against other AMCA clients, were consolidated into a multidistrict litigation in the U.S. District Court for the District of New Jersey (In re: American Medical Collection Agency, Inc. Customer Data Security Breach Litigation, MDL No. 2904) before Judge Madeline Cox Arleo. The CareCentrix claims sat within the MDL’s “Other Labs Track.” Plaintiffs alleged that CareCentrix was negligent in safeguarding their data and brought claims for negligence, breach of confidence, intrusion upon seclusion, unjust enrichment, and violations of Connecticut and New York consumer protection and data breach notification laws.1AMCA Data Settlement – CCX. AMCA CareCentrix Data Breach Settlement
What Class Members Could Recover
CareCentrix agreed to a non-reversionary $6.3 million settlement fund. The court granted preliminary approval on June 29, 2023, and held the final fairness hearing on October 31, 2023. Anyone in the United States whose personally identifiable information was coordinated through CareCentrix and potentially compromised during the breach window was in the class.4U.S. District Court for the District of New Jersey. Amended Order Granting Preliminary Approval, MDL 2904
Class members could pick from several benefit options:
- Reimbursement of up to $5,000 for documented out-of-pocket losses traceable to the breach, including identity theft expenses, professional services, and up to 10 hours of remedial time at $25 per hour.
- An alternative cash payment of up to $50 per person in place of documented losses.
- An extra $50 payment for California residents on top of other benefits.
- Up to three years of credit and medical information monitoring through Identity Guard.
All cash payments were subject to pro rata adjustment based on claim volume. CareCentrix also agreed to stop collecting on any debts it had referred to AMCA before the breach from participating class members. Class counsel was allowed to seek fees of up to one-third of the fund, and named representatives could receive service awards of up to $5,000.5AMCA Data Settlement – CCX. AMCA CareCentrix Settlement FAQs
The claim deadline was January 31, 2024, and payments have since gone out. If you didn’t file by then, the case is closed.1AMCA Data Settlement – CCX. AMCA CareCentrix Data Breach Settlement
Wage and Hour Cases Brought by Employees
Two separate collective actions under the Fair Labor Standards Act have been filed against CareCentrix, both in the District of Connecticut.
Paparella v. CareCentrix
Former verification specialist Elizabeth Paparella sued in February 2019 on behalf of herself and about 200 other employees, alleging they were pressured to work off the clock before shifts, after shifts, and during lunch breaks. She said she personally logged 10 to 12 hours of unpaid overtime a week over three years. Judge Jeffrey Meyer approved a settlement on December 23, 2019, calling it a “fair and just resolution,” and the case was terminated.6Yahoo Finance. Lawsuit: Hundreds of Employees of Health Management Company Denied Wages7PacerMonitor. Paparella v. CareCentrix, Inc.
Jones v. CareCentrix
A newer collective action, filed in 2023 by a customer service representative named Jones, alleges CareCentrix didn’t pay workers for the nine to 12 minutes a day they spent booting up computers, logging into applications, and shutting down. The suit also alleges the company left non-discretionary bonuses and shift differentials out of overtime rate calculations. In August 2024, Judge Victor A. Bolden denied CareCentrix’s partial motion to dismiss the bonus-related overtime claim and ordered limited discovery on the named plaintiff’s wages. In June 2025, Judge Bolden rejected a proposed $120,000 settlement, finding it required workers to release too broad a set of claims. The case remains open.8HR Dive. Employees Must Be Paid for Time Spent Logging In and Out9Justia. Jones v. CareCentrix, Inc., Order on Motion to Dismiss10Law360. Healthcare Co.’s $120K Wage Deal Rejected
Brown v. CareCentrix: The Florida Medical Billing Class Action
The one active consumer case worth watching is Brown v. CareCentrix, Inc. et al., Case No. 1:25-cv-23534, filed July 2, 2025, in Miami-Dade County Circuit Court and removed to the U.S. District Court for the Southern District of Florida. It names CareCentrix along with medical device makers DJO Global, Inc. and DJO, LLC.11ClassAction.org. Class Action Lawsuit Claims CareCentrix, DJO Bill Patients for Fraudulent Medical Device Charges
The complaint alleges DJO prices its durable medical equipment, such as braces and rollators, at several times the retail cost of comparable products. After a patient’s insurer pays for the equipment, the money is allegedly routed through CareCentrix, which keeps a portion before passing the rest to DJO. Patients are then billed for additional amounts, including deductibles, even though the defendants have allegedly already been paid in full. According to the complaint, patients are never told CareCentrix is in the billing chain. The suit brings claims under the Florida Deceptive and Unfair Trade Practices Act and the Florida Consumer Collection Practices Act, and seeks to represent everyone in Florida billed by CareCentrix for equipment or services within the statute of limitations.11ClassAction.org. Class Action Lawsuit Claims CareCentrix, DJO Bill Patients for Fraudulent Medical Device Charges
The case is before Judge Darrin P. Gayles. A jury trial is set for November 1, 2027. The plaintiff has sought leave to file a second amended complaint, motions to dismiss are pending, and a defendant has moved to transfer the case to the Northern District of Illinois, with DJO filing a cross-motion to sever. No class has been certified, and no settlement has been reached.12Justia Dockets. Brown v. CareCentrix, Inc. et al.13PacerMonitor. Brown v. CareCentrix, Inc. et al.
The Signify Health Trade Secrets Case
One more case sometimes turns up in searches, but CareCentrix was the plaintiff, not the defendant. In March 2021, CareCentrix sued in the District of Delaware, accusing a former general manager, Marcus Lanznar, of taking business strategies, confidential product data, and Medicare and Medicaid analytical data to competitor Signify Health while still employed at CareCentrix. In December 2021, the court denied CareCentrix’s motion for a preliminary injunction, though Signify had already agreed to sideline the executive for a year. The parties settled in May 2022. CareCentrix dismissed all claims with prejudice, each side paid its own costs, and financial terms were not disclosed.14Healthcare IT News. CareCentrix Files Corporate Espionage Lawsuit Against Signify Health15Davis Polk. Signify Health Defeats Bid for Preliminary Injunction in Trade Secret Dispute16O’Melveny & Myers. Home Care Co., Ex-Exec Settle Trade Secrets Row
Who Owns CareCentrix Now
Ownership has shifted while these cases have been moving. Walgreens Boots Alliance took a 55% stake in August 2022 for $330 million and then moved to buy the remaining 45% for about $392 million. Full ownership didn’t last long. On August 28, 2025, private equity firm Sycamore Partners completed its roughly $23.7 billion acquisition of Walgreens Boots Alliance, and CareCentrix was spun off as a private standalone company. Steve Horowitz continues as CEO.17CareCentrix. Walgreens Boots Alliance Completes Majority Share Acquisition of CareCentrix18Fierce Healthcare. Walgreens Snaps Remaining Stake in Home Healthcare Company CareCentrix19CareCentrix. CareCentrix to Operate as a Private Standalone Company Following Acquisition by Sycamore Partners