Sonic Healthcare U.S.A., Clinical Pathology Laboratories, Inc., Aurora Diagnostics LLC, and Austin Pathology Associates have agreed to a $6,438,578.20 settlement to resolve claims associated with the American Medical Collection Agency (AMCA) data breach litigation.
Settlement Terms and Litigation Status
The settlement takes care of the Other Labs Track of the consolidated lawsuit in the U.S. District Court for the District of New Jersey. The plaintiffs and the four HIPAA-covered healthcare companies have opted to settle claims against them related to the AMCA data breach. A settlement fund of $6,438,578.2 will pay for litigation-related costs and expenses, such as attorneys’ fees and expenditures, settlement management and notice costs, class representatives’ service awards, and claims filed by class members.
The defendants do not admit wrongdoing or liability. They likewise claim that the plaintiffs and class members are not affected by injury or damage due to the cyberattack or data breach. They agreed to the settlement to avoid further litigation costs and the uncertainty linked to a trial and probable appeals.
The litigation was prompted by a cyberattack involving AMCA, which offers solutions to recovering small-balance medical debt for healthcare providers and clinical labs.
Data Breach Details
The forensic investigation found that an unauthorized third party accessed sensitive data from August 1, 2018 to March 30, 2019, after a cyberattack on AMCA’s web payment site. The breached information included names, contact details, government-issued IDs, medical billing details, financial account data, and payment details. The incident affected over 27 million individuals.
Several lawsuits were filed against AMCA and its clients after the breach. The lawsuits stated claims such as breach of contract, negligence, and other allegations. The cases were consolidated in the U.S. District Court for the District of New Jersey.
Settlement Benefits for Class Members
Eligible class members can claim medical and health data monitoring for two years with the CyEx Medical Shield Pro service.
Class members can likewise file claims for documented, unreimbursed expenses related to the data breach, up to $5,000 each. Up to 10 hours of lost time at $25 per hour may be included.
Class members can alternatively claim a one-time cash payment. The estimated amount is $50, depending on the number of claims filed.
The settlement fund will pay eligible claims and other particular litigation costs. The amount for individual payments will depend on the claims filed under the settlement terms.
January 4, 2027 is the last day to submit claims under the Sonic settlement. Class members can submit their claim forms online or by mail with a postmark no later than that date. The last day to object to the settlement or opt out is December 3, 2026. The final fairness hearing will be on January 7, 2026.
The settlement website identifies the litigation as In re: American Medical Collection Agency, Inc. Customer Data Security Breach Litigation, United States District Court for the District of New Jersey, Civil Action No. 19-md-2904. The website also identifies separate settlements involving Labcorp and the Sonic defendants.