The healthcare technology firm Veradigm Inc. (previously Allscripts) decided to settle a class action lawsuit that was filed as a result of a 2024 data breach that exposed sensitive patient data. The Illinois-based firm provides HIPAA-compliant software system to healthcare providers, which include electronic medical record application and practice management solution. In December 2024, threat actors accessed its network and possibly stole patient information of its healthcare clients. Over 2 million patients were affected. Data breached in the incident included the following: names, contact data, dates of birth, health record details, insurance claim information, payment data, and other identifiers, like Social Security numbers and drivers’ licenses.
Plaintiffs Tony Goodrum and Jason Mixton submitted the first class action litigation in association with the data breach in June 2025. The lawsuit represents the plaintiffs individually and on behalf of similarly situated individuals. A second class action lawsuit was filed later, and the two lawsuits were consolidated into a single action in the U.S. District Court for the Northern District of Illinois, given that they had overlapping claims.
The Goodrum, et al. v. Veradigm Inc. litigation alleged that the data breach was because of negligence, and might have been avoided if acceptable and appropriate cybersecurity steps were enforced. Besides negligence, the lawsuit stated claims for negligence per se, unjust enrichment, breach of implied contract, declaratory judgment, and injunctive relief.
Veradigm does not admit all claims of wrongdoing and liability; nevertheless, immediately after the two legal cases were filed, the provider looked into the chance of quick resolution. With mediation, the parties reached an agreement in principle to resolve the litigation, with no admission of wrongdoing or liability. Class attorney and the class representatives feel the discussed settlement is reasonable and is best for the class members.
The terms of the settlement agreement state that Veradigm has agreed to set up a $10,500,000 settlement fund to pay for claims for settlement administration expenses, class members’ benefits, and attorneys’ fees and costs, as approved by the court. Class members are eligible to submit a claim for around $5,000 as refund of documented, unreimbursed expenditures as a result of data breach or, alternatively, can claim a cash payment, which is estimated to be $50, though it may be adjusted based on the number of valid claims received. Regardless of the option selected, class members could also claim a two-year membership to a medical data monitoring service. More information regarding what may be claimed is available on the settlement website: https://veradigmdatasettlement.com/
The deadline to file an objection to and opting out of the settlement is February 17, 2026. Claims should be submitted until March 3, 2026. The schedule of the final fairness hearing is March 18, 2026.
