Closed
PracticeMax Data Security Incident Settlement
The claim window closed on February 24, 2024. The court granted final approval on March 14, 2024, and settlement payments were issued on July 22, 2024.
Case record
- Case
- Hogsed, et al. v. PracticeMax, Inc.
- Case no.
- 2:22-cv-01261-PHX-DLR
- Court
- U.S. District Court for the District of Arizona
- Defendant
- PracticeMax, Inc.
- Administrator
- Epiq Class Action & Claims Solutions
- Settlement fund
- $3 million (claims-made cap)
The case
What this settlement was about
PracticeMax, an Arizona-based medical billing and practice-management company, was hit by a ransomware attack in early 2021. Attackers had access to a company database between April 17 and May 5, 2021, exposing names, Social Security numbers, financial account and credit card details, dates of birth, prescription, diagnosis and treatment information, health insurance details, and Medicare and Medicaid ID numbers.
The class action alleged that PracticeMax failed to implement reasonable data security measures and was slow to tell people what happened: notification letters did not begin going out until October 19, 2021. More than 150,000 current and former patients of healthcare providers that used PracticeMax's services were affected.
PracticeMax denied liability, but agreed to a claims-made settlement capped at $3 million to end the lawsuit. As part of the deal, PracticeMax also confirmed it is no longer operating and submitted to confirmatory discovery about its remedial security measures.
The class
Who was covered
All individuals to whom PracticeMax sent notice that their private information may have been compromised in the data security incident that occurred in early 2021, roughly 150,000 or more current and former patients of providers that used PracticeMax's billing and practice-management services.
- What class members could receiveUp to $75 for lost time on attestation alone, up to $500 for documented ordinary out-of-pocket losses, up to $3,500 for documented extraordinary losses from actual identity theft, plus two years of credit monitoring with $1 million in identity theft insurance.
- Proof requirementMost class members could file without proof of purchase.
- Claim deadlinePassed on Feb 24, 2024. New claims are no longer accepted.
Docket timeline
How the settlement unfolded
- April–May 2021Ransomware attack
Unauthorized access to a PracticeMax database between April 17 and May 5, 2021, discovered on May 1, 2021.
- October 19, 2021Breach notices mailed
Notification letters began going out to affected patients and continued into 2022.
- July 2022Class action filed
Consolidated claims were brought in the District of Arizona.
- February 24, 2024Claim deadline
The last day to submit a claim online or by mail.
- March 14, 2024Final approval
Judge Douglas L. Rayes entered the final approval order the same day as the fairness hearing.
- July 22, 2024Payments issued
Cash awards for approved claims were issued; checks were void 90 days after issuance.
Questions people still ask
Frequently asked questions
Can I still file a PracticeMax settlement claim?
No. The deadline to file a claim was February 24, 2024, and the settlement received final approval on March 14, 2024. New claims are no longer accepted.
How much did the PracticeMax settlement pay?
Class members could claim up to $75 for lost time without documentation, up to $500 for documented ordinary losses, or up to $3,500 for documented extraordinary losses tied to identity theft. Everyone in the class could also enroll in two years of credit monitoring with $1 million in identity theft insurance.
When were PracticeMax settlement payments sent?
Payments for approved claims were issued on July 22, 2024. Settlement checks were void 90 days after issuance; if you never cashed yours, contact the administrator, Epiq Class Action & Claims Solutions.
What was the PracticeMax data breach?
A ransomware attack in early 2021 gave intruders access to a PracticeMax database between April 17 and May 5, 2021. Exposed data included Social Security numbers, financial account information, and medical and insurance details for more than 150,000 people.
Is practicemaxdatasettlement.com still the official settlement site?
No. The official settlement website was retired after the settlement wound down, and the domain registration lapsed. This page preserves the settlement's record; the claims administrator was Epiq Class Action & Claims Solutions.
Sources for this record
Official site practicemaxdatasettlement.com has been retired. Record preserved by TapClaim.
