HealthEC Data Breach Settlement: Eligibility, Claims, and Payment Dates

The HealthEC data breach settlement is a $5,482,500 class action fund resolving claims from a 2023 cyberattack on HealthEC, LLC, a New Jersey health data analytics vendor whose systems held records for roughly 4.5 million patients across nearly 20 healthcare organizations. A federal court in New Jersey granted final approval on January 20, 2026, and the settlement administrator, Verita, began issuing payments to approved claimants on March 24, 2026.¹

Who the Settlement Covers

The class includes roughly 1.67 million patients of HealthEC and certain partner healthcare entities whose personal or medical information was compromised in the breach.²³⁴

The total universe of individuals affected by the underlying breach was ultimately confirmed at approximately 4.8 million.³

What Class Members Could Claim

The settlement offered several compensation options, and class members chose one path for monetary relief:⁵

Reimbursement for documented out-of-pocket losses traceable to the breach, including fraud, identity theft, credit freezes, and monitoring services incurred between July 14, 2023, and the claim filing date.
Lost time at $25 per hour, up to ten hours, for time spent dealing with fraud or taking protective measures.
A flat cash payment of $25 for most class members, or $50 for California consumers, without documentation.

All monetary payments were subject to pro rata adjustment based on the total volume of approved claims.² Nearly 50,000 valid claims were submitted before the deadline.⁶

Separate from the cash options, all class members were eligible for Medical Shield Complete at no cost: at least three years of Experian credit monitoring, dark web monitoring, medical and healthcare data monitoring, a $1 million identity theft insurance policy with no deductible, and access to U.S.-based fraud resolution specialists. This benefit is available even to people who did not file a claim for money.⁵

Payment Dates and the Monitoring Deadline

The claim filing window has closed, and payments began on March 24, 2026.¹ Class members who did not submit a monetary claim can still enroll in Medical Shield Complete through the settlement website at HealthECSettlement.com. Enrollment for that benefit remains open through April 1, 2029.⁷

Only 22 class members opted out during the notice period, well below the 1,000-person threshold that would have let the defendants walk away from the deal.⁶

What the Breach Involved

Between July 14 and July 23, 2023, hackers accessed HealthEC’s network and removed files containing protected health information.³ Notification letters did not reach affected individuals until December 22, 2023, roughly five months after the intrusion was discovered.⁸

The compromised data varied by individual and could include names, addresses, dates of birth, Social Security numbers, medical record numbers, diagnoses, prescription information, Medicaid and Medicare identification numbers, and billing and claims information.⁴ Lawsuits were consolidated in the U.S. District Court for the District of New Jersey as In re HealthEC, LLC Data Breach Litigation, Case No. 2:24-cv-00026.⁹

1
Claim Depot. HealthEC Settlement
2
ClassAction.org. $5.48M HealthEC Settlement Resolves Data Breach Lawsuit Over Cyberattack Affecting Millions of Patients
3
HIPAA Journal. HealthEC Data Breach
4
Michigan Department of Attorney General. Second Corewell Health Data Breach Exposes Info of One Million Michigan Patients
5
HealthEC Settlement. In Re HealthEC, LLC Data Breach Litigation, Settlement Notice
6
Bloomberg Law. HealthEC $5.5 Million Data Breach Settlement Seeks Final Nod
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HealthEC Settlement. In Re HealthEC, LLC Data Breach Litigation Official Settlement Website
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ClassAction.org. In Re HealthEC, LLC Data Breach Litigation, Consolidated Complaint
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ClassAction.org. In Re HealthEC, LLC Data Breach Litigation, Settlement Agreement