ILS Data Breach Settlement: $14M Fund, Class, and Payouts

The ILS data breach settlement is a $14 million class action resolving claims against Independent Living Systems over a 2022 cyberattack that exposed the personal and medical information of roughly 4.2 million people. A federal judge in the Southern District of Florida granted final approval on November 24, 2025, and Kroll Settlement Administration is now processing claims.¹ Payments are scheduled to go out approximately 91 days after final approval and the resolution of any appeals, but the settlement website has not yet announced a confirmed distribution date.²

What Happened in the Breach

Between June 30 and July 5, 2022, an unauthorized third party accessed the Independent Living Systems network and took files containing names, dates of birth, Social Security numbers, taxpayer identification numbers, medical diagnoses and treatment information, and health insurance details.³ ILS reported the incident to the U.S. Department of Health and Human Services’ Office for Civil Rights as affecting 4,226,508 individuals.⁴ Formal notification letters went out starting around March 14, 2023.⁵

Who Is in the Class

The settlement class covers approximately 3.9 million U.S. residents whose information was exposed or potentially accessed in the breach.⁶ Because ILS provides services to managed care organizations, affected people include members of the health plans it supports, not just direct ILS customers. Two ILS subsidiaries were directly identified: Florida Community Care LLC, a statewide Medicaid long-term care provider network, and HPMP of Florida Inc., doing business as Florida Complete Care, a Medicare Advantage special needs plan.⁷ ILS also sent notifications on behalf of outside health plan clients, including VNS Health, which confirmed its members were affected.⁸

What Class Members Can Receive

Approved claims fall into two tracks. First, documented out-of-pocket losses tied to the breach can be reimbursed up to $5,000. Qualifying expenses include credit monitoring costs, fraud-related charges, and late fees incurred between June 30, 2022, and the claim deadline.⁶

Second, class members can claim a pro rata cash payment from whatever remains in the net settlement fund after out-of-pocket claims and expenses are paid. California residents as of June 30, 2022 receive two pro rata shares rather than one, reflecting the value of California statutory privacy claims.⁹ The exact per-person amount depends on how many valid claims were filed, which has not been publicly disclosed.

One boundary worth noting: the settlement does not include free credit monitoring as a benefit.⁶ The fund is also non-reversionary, so unclaimed money stays in the settlement rather than returning to ILS; any residual after claims and costs goes to the Alzheimer’s Association as a cy pres beneficiary.⁴

When Payments Go Out

The claim deadline was November 4, 2025, and the deadline to opt out or object was October 6, 2025.² Judge Kathleen M. Williams held the final approval hearing on November 17, 2025 and granted final approval on November 24, 2025.¹

Under the settlement terms, payments are to be distributed roughly 91 days after final approval and the resolution of any appeals.¹ As of the most recent website update, distribution has not been finalized and no confirmed payment date has been announced.²

If You Got a Deficiency Notice

Kroll is reviewing claims and sending deficiency notices to claimants whose submissions need correction.² A technical issue that prevented some class members from opening links in those deficiency emails was resolved as of February 17, 2026, so links in current notices should work.¹

How to Contact the Administrator

Kroll Settlement Administration can be reached by phone at (833) 420-3957 or by email at info@ILSDataBreachSettlement.com for inquiries. Class members who believe they were affected but never received a notice can call the same number to request a Class Member ID.⁶

1
Claim Depot. ILS Data Breach Settlement
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ILS Data Breach Settlement. ILS Data Breach Settlement Home
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ClassAction.org. $14M Independent Living Systems Settlement Ends Lawsuit Over 2022 Data Breach
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HIPAA Journal. Independent Living Systems Data Breach Settlement
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HIPAA Times. $14M Settlement Approved in Independent Living Systems Data Breach Case
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ILS Data Breach Settlement. Frequently Asked Questions
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HIPAA Journal. More Than 4 Million Individuals Affected by Cyberattack on Independent Living Systems
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VNS Health Plans. Notice of Independent Living Systems Data Breach
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Bloomberg Law. Independent Living Systems Data Breach Settlement Gets First Nod