Falcon Healthcare, also known as Interim Healthcare of Lubbock, Texas provides home care and home health care services. The HIPAA-covered entity decided to settle class action litigation that resulted from a hacking incident that was first detected in June 2022. An unauthorized third party acquired access to its computer network from April 29, 2022, to July 3, 2022, and stole the protected health information (PHI) of 89,443 patients.
The hacking incident resulted in the compromise of data including names, addresses, dates of birth, health insurance details, driver’s license numbers, Social Security numbers, diagnoses, lab results, medicines, and treatment data. The affected patients were provided complimentary credit monitoring and identity theft protection services. However, Falcon Healthcare only sent data breach notification on April 25, 2025.
Falcon Healthcare faced a class action lawsuit filed on May 1, 2024 in the District Court of Lubbock County, Texas. The Dawn Rice v. Falcon Healthcare, Inc. d/b/a Interim Healthcare of Lubbock, Texas litigation sought damages on behalf of a national class of people impacted by the incident. The litigation claimed that the data breach could have been avoided. The legal action stated claims of unjust enrichment, negligence, negligence per se, breach of fiduciary duty, and breach of implied contract.
Falcon Healthcare denied all claims and allegations in the litigation, including all allegations of liability and wrongdoing. All parties arrived at an agreement on the material terms of a settlement. They determined that a settlement was the best for all parties to prevent higher legal costs and the uncertainty of a trial and associated appeals.
The terms of the agreement are final and a federal judge accepted the terms. Falcon Healthcare made a decision to set up a $800,000 settlement fund to cover lawyers’ fees and expenses, settlement administration and notification expenses, a class representative service award, and class members’ medical data monitoring for two years.
Class members are eligible to claim one of two benefits.
1. A claim for reimbursement of documented, unreimbursed expenditures because of the data breach up to $5,000 per class member.
2. A cash payment claim, which is approximated to be $100 for each class member. The amount of cash payment will be adjusted pro rata based on the number of submitted claims. Further data is available on https://falcondatasettlement.com/
The last day to file for objection to and exclusion from the settlement is January 20, 2026. Class members should submit all claims by January 26, 2026. The final fairness hearing schedule is February 10, 2026.