$7,000 Compensation for Data Breaches: Happening in the USA

3 Million Americans Affected by Data Breach

Approximately 3 million Americans are eligible to file a claim to receive compensation totaling 4 million dollars (3.72 million euros) following a serious breach of personal and health data.
This comes as a result of a class action lawsuit filed in Pennsylvania, currently pending final court approval, as part of an agreement between the class action members and Connexin Software.

Data Breach Details

According to the company’s statement, in August 2022, Connexin discovered that a third party had gained access to one of its servers, leading to a compromise of personal information of patients and employees.
Connexin Software, Inc., operating under the name Office Practicum, develops and sells application software for the creation and management of electronic health records, as well as practice management systems used in pediatric clinical settings.

Impact of the Data Breach

The data breach compromised social security numbers, health insurance data, employment information, and other personal details.
It is estimated that around 3 million individuals were affected by the breach, with Connexin only starting to notify its customers about the incident in December 2022.
Since then, the company has been accused of failing to protect personal information, resulting in losses or other damages to those affected.

Compensation Agreement

To settle the dispute and address claims in the lawsuit, Connexin Software has agreed to a settlement totaling 4 million dollars, without admitting any wrongdoing.
Under the terms of the agreement, affected individuals can choose between receiving three years of free identity theft and fraud monitoring or a one-time payment of up to $7,500 for losses incurred due to the data breach.

Individuals selecting the latter option will need to provide evidence of losses related to the breach or accept an alternative cash payment.
Such evidence may include receipts, invoices, bank statements, and similar documents.
Class action members have until June 25 to opt out or object to the preliminary settlement agreement.

The final hearing for approval of the agreement is scheduled for July 24.