Lincare Class Action Lawsuit Update: Data Breach and DOJ Payouts

The main Lincare class action lawsuit was the 2021 data breach case, which settled for $7.25 million and received final approval in June 2024; the deadline to file a claim was April 15, 2024, and the claims period is closed. Beyond that consumer class action, Lincare has resolved more than $54 million in Medicare fraud allegations with the Department of Justice and paid a $50 million wrongful death settlement in 2025, but those cases do not pay ordinary customers.

The $7.25 Million Data Breach Settlement

In September 2021, Lincare Holdings discovered unauthorized access to its systems. The intrusion exposed personal and medical information for roughly 2.9 million patients, including names, addresses, dates of birth, Lincare account numbers, treatment details, provider names, diagnosis and procedure information, health insurance records, and prescription information. A smaller group also had Social Security numbers exposed.1HIPAA Journal. Lincare Holdings Data Breach Lawsuit Settlement

Patients sued in the U.S. District Court for the Middle District of Florida, and the cases were consolidated under Case No. 8:22-cv-01472. The complaint alleged Lincare had failed to put reasonable cybersecurity protections in place.2ClassAction.org. In Re Lincare Holdings Inc Data Breach Litigation Motion for Preliminary Approval The parties reached a $7.25 million non-reversionary settlement in principle on July 17, 2023. The class covered all U.S. individuals whose personal information was stored by Lincare and potentially compromised in the September 2021 breach.3Lincare Settlement. In Re Lincare Holdings Inc Data Breach Litigation – Exhibit C Lincare did not admit wrongdoing.

What Class Members Could Claim

Eligible class members could claim reimbursement for documented out-of-pocket losses tied to the breach, capped at $5,000 per person. Covered losses included bank fees, credit monitoring costs, fraudulent charges, and identity theft expenses. Claimants could also request up to four hours of lost time at $20 per hour. California residents could add $90 under the state’s Confidentiality of Medical Information Act, for a maximum individual recovery of $5,090.4Top Class Actions. Lincare Holdings Data Breach Class Action Settlement

Every class member could also elect one year of Medical Shield identity protection, which included dark web monitoring, medical record and Medicare monitoring, and $1 million in identity theft insurance.1HIPAA Journal. Lincare Holdings Data Breach Lawsuit Settlement There was no guaranteed per-person dollar amount. Actual payouts depended on how many valid claims came in against the $7.25 million fund.5Lincare Settlement. Motion for Final Approval

Final Approval and Closed Claim Window

A Florida federal magistrate judge granted final approval on June 26, 2024. The plaintiffs’ final approval and attorneys’ fee motions were unopposed.6Mealeys. $7.25 Million Settlement of Lincare Data Breach Receives Final Approval Kroll Settlement Administration ran the claims process at LincareSettlement.com. The claim filing deadline was April 15, 2024.7PR Newswire. Lincare Data Breach Settlement Notice New claims are no longer being accepted.

Are Any Other Lincare Class Actions Open?

No other consumer class action against Lincare is currently open for claims based on the file. One active piece of litigation, Vargas v. Lincare, Inc., is a False Claims Act whistleblower case brought by two former insiders in the Middle District of Florida. It alleges that Lincare’s Optigen subsidiary upcoded CPAP accessories under higher-reimbursement ventilator billing codes, among other schemes.8Eleventh Circuit. Vargas v. Lincare Inc., No. 24-11080 On April 16, 2025, the Eleventh Circuit reinstated the upcoding claim after the district court had dismissed it; the other three claims stayed dismissed. The case is back in discovery with a trial term beginning May 3, 2027.9PACER Monitor. Vargas v. Lincare Inc. et al A qui tam case like this is brought on behalf of the government by whistleblowers. It is not a consumer class action, and any recovery would go to the United States and the relators, not to Lincare patients.

Medicare Fraud Settlements With the DOJ

Two of the largest recent Lincare cases were federal fraud settlements, not class actions. They are worth understanding because searchers often find them when looking for “Lincare lawsuits” and assume patient payments are available.

$29 Million Oxygen Overbilling Settlement (2023)

On August 28, 2023, Lincare agreed to pay $29 million to resolve allegations that it overbilled Medicare, Medicare Advantage plans, and individual beneficiaries for oxygen equipment rentals. Under federal rules, oxygen equipment is considered paid in full after three years of rental payments, and providers may not charge further rental fees or co-payments. Lincare admitted it kept billing past that cap and lacked controls to stop the overcharges.10U.S. Department of Justice. Lincare Holdings Agrees to Pay $29 Million to Resolve Claims of Overbilling Medicare for Oxygen Equipment The conduct spanned 2012 to 2023 for traditional Medicare and 2016 to 2023 for Medicare Advantage.11The Spokesman-Review. Medical Supplies Company Lincare Reaches $29 Million Settlement The case came from a whistleblower complaint filed in May 2021 by two former Lincare employees in Libby, Montana, Benjamin Montgomery and Brandon Haugen, who shared over $5.6 million of the recovery.

If you were billed rental fees or co-payments for oxygen equipment past the 36-month cap, the money went to the federal government under this settlement, not to a patient claims fund. Individual beneficiaries seeking reimbursement would need to raise the issue separately with Lincare and their insurer.

$25.5 Million Ventilator Settlement (2024)

On February 14, 2024, Lincare paid $25.5 million to resolve False Claims Act and Anti-Kickback Statute allegations from the U.S. Attorney’s Office for the Southern District of New York. From January 2013 through February 2020, the government alleged, Lincare billed Medicare and TRICARE for non-invasive ventilator rentals for patients who were no longer using or no longer needed the devices.12Susman Godfrey. Lincare Inc. Will Pay $25.5 Million to Settle Fraud Claims Lincare admitted skipping required 60-day home visits to confirm continued use, ignoring remote monitoring data that showed devices sitting idle, and routinely waiving patient co-payments without assessing financial need. The government treated the co-payment waivers as illegal kickbacks meant to steer patients toward Lincare.13KWQC. DOJ Settlements $54.5M Lincare Accused Improper Medicare Billing Ventilators Oxygen Whistleblowers Sandra Gauch and Michelle McNeill, who filed the complaint in January 2018, received over $4.7 million.

The $50 Million Wrongful Death Settlement

In July 2025, Lincare paid $50 million to settle a wrongful death lawsuit involving LeQuon Marquis Vernor, a 27-year-old with Down syndrome and severe obstructive sleep apnea. His mother, Sharon Vernor, alleged Lincare took seven days to respond to reports that his BiPAP breathing machine was malfunctioning and did not provide a loaner, allegedly because the company could not bill for a temporary replacement.14ProPublica. Lincare Wrongful Death Lawsuit Sleep Apnea Oxygen Before the settlement, a judge ruled the plaintiff had shown enough evidence to seek punitive damages, finding a jury could conclude Lincare “intentionally acted with a deliberate and flagrant disregard for the safety of others.” This was an individual family’s lawsuit, not a class action, so it does not create a claim pool for other patients.

A Pattern of Federal Probation

One reason Lincare draws so many lawsuit searches is that it has been on federal probation four separate times since 2001 through Corporate Integrity Agreements with the HHS Office of Inspector General. According to ProPublica, the four periods run 2001–2006, 2006–2011, 2018–2023, and 2023–2028.15ProPublica. How Lincare Became a Multibillion-Dollar Medicare Scofflaw The current five-year agreement, signed on August 10, 2023, came out of the $29 million oxygen settlement and requires independent billing reviews, compliance reforms, and new billing software.16HHS OIG. Lincare Inc. Corporate Integrity Agreement (2023)

ProPublica reported the current agreement contains a “death penalty” clause that could allow HHS to exclude Lincare from Medicare entirely for a material breach. HHS has never actually barred a national supplier of Lincare’s size, even after finding violations of prior agreements. As part of the 2023 settlement, Lincare also secured assurances that the government would not invoke the exclusion clause for the specific conduct behind that resolution. No formal breach finding under the current agreement has been publicly reported.