The Specialty Networks data breach settlement is a $2.6 million class action resolution that compensated roughly 408,000 patients whose personal and medical information was exposed in a December 2023 intrusion into the healthcare services company’s systems. A federal judge in Tennessee granted final approval on February 26, 2026, and payments to approved claimants went out on April 29, 2026.1Settlement final approval and payment date as reported in the research file.
Who Was Covered and What Was Exposed
The class included anyone in the United States whose personal information was identified as potentially compromised in the breach. Specialty Networks began mailing notification letters on August 15, 2024 to about 395,866 people, and posted a substitute notice for another 12,234 without usable mailing addresses.
The stolen files varied by individual but could contain names, dates of birth, driver’s license numbers, Social Security numbers, medical record numbers, treatment and diagnosis information, medications, and health insurance details. The incident was reported to the FBI and to the U.S. Department of Health and Human Services Office for Civil Rights, which lists it among HIPAA breaches under investigation.
Employees, directors, officers, and agents of the defendants were excluded, along with the judge and court staff.
What Claimants Received
Class members who filed a timely claim could choose one of two cash options:
- Reimbursement of up to $5,000 for documented out-of-pocket losses traceable to the breach, with reasonable documentation required. Expenses already covered by another source, such as an existing identity protection service, did not qualify.
- A flat cash payment, estimated at $100, with no documentation required.
Both amounts were subject to pro rata adjustment. If valid claims exceeded the available fund, payments would be reduced proportionally; if money remained, payments could go up.
Every class member, whether or not they took cash, could also elect three years of credit monitoring with all three major credit bureaus. Separately, Specialty Networks agreed to implement additional cybersecurity measures over three years, with the cost borne by the defendants rather than drawn from the settlement fund.
Key Dates
- Claim filing deadline: October 13, 2025
- Final approval: February 26, 2026
- Payments issued: April 29, 2026
- Check void date: July 28, 2026
The claim window has closed. If you did not file by October 13, 2025, you are not eligible to receive a payment from this settlement.
If You Received a Check
The settlement website advised recipients to deposit or cash their checks promptly. Uncashed checks become void after July 28, 2026.
What the Lawsuit Alleged
Six class actions filed after the breach were consolidated in October 2024 in the U.S. District Court for the Eastern District of Tennessee as Smith v. Specialty Networks LLC. The consolidated complaint accused Specialty Networks and co-defendant Prime Imaging of failing to implement reasonable cybersecurity measures, with claims for negligence, violations of the HIPAA Privacy and Security Rules, and unfair practices under the Federal Trade Commission Act. Plaintiffs argued the companies did not encrypt sensitive data, adequately monitor their networks, audit their systems, warn patients about security weaknesses, or maintain effective incident response plans.
Specialty Networks did not admit any wrongdoing as part of the settlement. Class counsel was awarded $866,666 in attorneys’ fees, one-third of the fund, and each of the seven named plaintiffs received a $2,500 service award. Kroll Settlement Administration served as claims administrator.
About Specialty Networks
Specialty Networks is a healthcare services company serving independent specialty physician practices in urology, gastroenterology, and rheumatology, providing group purchasing, population health management, clinical research tools, and data analytics to more than 10,000 providers across 1,500 practices. Cardinal Health announced plans to acquire the company and its PPS Analytics platform in early 2024.