Marlboro-Chesterfield Pathology, P.C. based in Pinehurst, North Carolina decided to resolve a class action lawsuit that was filed after the January 2025 ransomware attack that affected 235,911 individuals. The ransomware attack was attributed to the SafePay ransomware group.
The pathology service provider identified unauthorized access to the company’s network on January 16, 2025. A forensic investigation determined that the data of 235,911 individuals had been compromised. The compromised information included the following: names, birth dates, Social Security numbers, and protected health information (PHI). Marlboro-Chesterfield Pathology notified the affected individuals about the breach on or around May 7, 2025.
The Cox v. Marlboro-Chesterfield Pathology, P.C. lawsuit was registered in the County of Moor Superior Court by plaintiff Cox on behalf of herself and similarly affected individuals. The complaint alleged that personal information and PHI were exposed to cybercriminals as a result of the attack. The lawsuit also alleged that the incident occurred because Marlboro-Chesterfield Pathology failed to implement reasonable and appropriate cybersecurity measures to protect sensitive information stored on its network.
Marlboro-Chesterfield Pathology disputed the allegations in the lawsuit. The HIPAA-covered company maintained that there was no wrongdoing and disagreed with the claims asserted in the litigation, including allegations concerning fault and liability. Plaintiff Cox maintained that her claims were valid.
The parties engaged in negotiations after considering the costs and risks associated with continued litigation. Following those discussions, the material terms of a settlement were agreed on November 21, 2025.
Settlement terms have now been finalized, and the settlement has received preliminary court approval.
Settlement Benefits
Under the settlement, class members may submit claims for reimbursement of documented and unreimbursed out-of-pocket losses that resulted from the data breach. Reimbursement is available up to $1,000 per class member.
Individuals whose Social Security numbers were compromised in the incident may choose to submit a claim for an alternative cash payment of $10.
The settlement also provides a one-year membership to a credit monitoring and identity theft protection service for all affected individuals. Eligibility for this benefit does not depend on whether a claim is submitted for reimbursement of losses or for the alternative cash payment. The service includes an identity theft insurance policy with coverage of up to $1 million.
Court Approval and Deadlines
The settlement received preliminary approval from the court. Marlboro-Chesterfield Pathology will pay attorneys’ fees and costs (capped at $100,000), a service award for the class representative, and settlement administration and notice costs.
The deadline for class members to submit objections, opt out of the settlement, or submit a claim is August 21, 2026. A final fairness hearing is scheduled for October 12, 2026.