Data breaches are becoming the number one threat to users in an increasingly digital world. With companies and corporations alike that are storing their clients’ personal privacy information online, the obligation to take extreme precautions to ensure that this data remains secure continues to grow. However, cybercrime continues to grow in sophistication, and data breaches continue to be a problem, which can result in large litigations and class action lawsuits if it is alleged that an entity did not have enough precautions in place to prevent a data breach.
The obligation to protect client information in the digital age
While digitalization has meant a more connected and, in many ways, streamlined process of sharing and storing information, it has also meant that sensitive data is more at risk of being compromised and exposed. This means that large entities that are responsible for securing their clients’ data need to take heightened precautions to ensure that this information does not get stolen or sold by cybercriminals.
Additionally, other problems that are occurring with the storing of client data include large entities not being transparent about how their clients’ data is being used. This can refer to anywhere between entities themselves selling their clients’ data to third parties, using it for targeted ads, not informing users how their data is collected, or collecting and processing data that is not necessary for the service the entity is offering.
When client data is compromised in ways such as these, it can result in large class action lawsuits. Class action lawsuits differ from other litigation procedures as the plaintiff is not a single individual but is multiple persons who allege the same claim against a defendant. Class action lawsuits are common in cases where data is breached, as these types of breaches not only affect many clients but, by putting together a class action lawsuit, plaintiffs have a better chance at winning a litigation by pooling resources and drawing publicity to a case.
Plaintiffs receive $5,000 for this data breach
Earlier last month, it was announced that Lake Charles Memorial Health agreed to settle a $2 million litigation with plaintiffs over an October 2022 data breach where an unauthorized third party gained access to sensitive information of patients at the hospital, including:
- Names
- Addresses
- Identification numbers
- Health insurance information
- Payment information
- Dates of birth
- Clinical information
- Social Security numbers
The plaintiffs allege that the hospital did not take enough preventive measures to ensure that their data was not compromised. While the hospital has not admitted to any wrongdoing, they have agreed to settle the litigation with the settlement, whereby eligible plaintiffs can receive up to $5,000 for out-of-pocket expenses related to the data breach. Class members can also receive a reimbursement of up to three hours of lost time at a rate of $25 per hour. If class members do not claim out-of-pocket expenses, they can still receive benefits at a pro rata cash payment.
Who is eligible for the settlement?
While the settlement was achieved last month, the deadline for exclusion and objection to the settlement is September 5, 2025. Plaintiffs must also submit a valid claim to be part of the settlement before then, with the final approval hearing scheduled for November 3, 2025.
Similar to other data breach settlements, to be eligible to be part of the settlement, class members need to submit evidence that they received notice from Lake Charles Memorial Health in December 2022 that their information was compromised in the October 2022 data breach. Additionally, class members will need to submit documentation recording their out-of-pocket related expenses to claim up to $5,000. For more information about this settlement, you can visit Top Class Actions and get informed about how to file a claim.
Disclaimer: You should not submit false or inflated claims under penalty of perjury, as class‑action claim forms historically required declarations signed “under penalty of perjury” to ensure authenticity. Submitting a fraudulent claim not only carries legal exposure—including potential civil and criminal sanctions—but also harms other eligible class members by diluting the available settlement pool.
