A Pennsylvania healthcare services company has agreed to a $3 million class-action settlement stemming from a major cybersecurity incident.
Healthcare Services Group reached the agreement in Williamson et al. v. Healthcare Services Group, Inc., reports HIPAA Journal.
The firm supplies environmental, dining, and nutritional support services across thousands of long-term care and healthcare facilities in 48 states.
Unauthorized access to company systems reportedly allowed the theft of names, Social Security numbers, driver’s licenses, financial account records, login credentials and protected health information. Other information that was impacted include state identification numbers and health insurance information.
The data breach was identified on or around October 7th of 2024, and impacted the personal and protected data of 624,496 people.
Among the allegations leveled against Healthcare Services Group in the class action lawsuit that led to the settlement included negligence, breach of fiduciary duty, unjust enrichment and violations of consumer protection laws.
The settlement fund will cover legal costs and provide class members with three years of credit monitoring plus identity theft protection.
Eligible individuals can also seek reimbursement for out-of-pocket losses up to $5,000 each along with possible additional cash distributions.
The company denies any liability yet chose to resolve the claims and avoid prolonged court proceedings.
Claims must be submitted by October 1st of 2026, ahead of a final fairness hearing scheduled for September 24th of 2026.
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