American Addiction Centers Inc., a national provider of substance use disorder treatment services, faced a significant data breach in 2024 when an unauthorized party infiltrated its internal computer systems. The incident exposed the personal information of approximately 423,000 individuals, prompting the company to notify affected parties. As a result, plaintiffs filed a lawsuit alleging negligence in safeguarding sensitive data, leading to a $2.75 million settlement. Class members those impacted by the breach are eligible for reimbursement of up to $5,000 for documented expenses, along with an estimated $50 pro rata cash payment per individual. The breach underscores vulnerabilities in the company’s cybersecurity measures, particularly concerning the protection of highly sensitive health-related and personal data. The financial and reputational fallout, combined with the scale of exposed records, highlights the severe consequences of inadequate data security protocols in sectors handling confidential patient information.
Source: https://news.bloomberglaw.com/ip-law/american-addiction-centers-to-pay-2-75-million-over-data-breach
American Addiction Centers cybersecurity rating report: https://www.rankiteo.com/company/american-addiction-centers
"id": "AME1213612112525",
"linkid": "american-addiction-centers",
"type": "Breach",
"date": "6/2024",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'customers_affected': '423,000',
'industry': 'Healthcare',
'location': 'United States',
'name': 'American Addiction Centers Inc.',
'type': 'National substance use disorder treatment '
'services provider'}],
'customer_advisories': 'Notification sent to 423,000 affected individuals '
'regarding potential compromise of personal '
'information and eligibility for settlement benefits',
'data_breach': {'data_exfiltration': 'Likely (unauthorized access to internal '
'systems)',
'number_of_records_exposed': '423,000',
'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High (healthcare-related personal '
'information)',
'type_of_data_compromised': 'Personal information'},
'date_publicly_disclosed': '2024-11-21',
'description': 'American Addiction Centers Inc. reached a $2.75 million '
'settlement with plaintiffs who alleged the company failed to '
'sufficiently protect their personal information. About '
'423,000 people were informed their information may have been '
'compromised when an unauthorized party gained access to the '
'company’s internal computer systems in 2024. Class members '
'are eligible for up to $5,000 in reimbursement for documented '
'expenses and a pro rata cash payment estimated at about $50.',
'impact': {'brand_reputation_impact': 'Negative (settlement indicates '
'reputational harm)',
'customer_complaints': 'Class-action lawsuit filed by affected '
'individuals',
'data_compromised': 'Personal information of ~423,000 individuals',
'financial_loss': '$2.75 million (settlement)',
'identity_theft_risk': 'High (personal information compromised)',
'legal_liabilities': '$2.75 million settlement; reimbursement up '
'to $5,000 per plaintiff + pro rata cash '
'payment (~$50)',
'systems_affected': 'Internal computer systems'},
'investigation_status': 'Settled (pending court approval)',
'references': [{'date_accessed': '2024-11-21',
'source': 'Court motion for preliminary approval (Judge '
'William L. Campbell Jr.)'}],
'regulatory_compliance': {'legal_actions': 'Class-action lawsuit settled for '
'$2.75 million'},
'response': {'communication_strategy': 'Notification to 423,000 affected '
'individuals; court filing for '
'settlement approval'},
'threat_actor': 'Unauthorized party',
'title': 'American Addiction Centers Data Breach Settlement',
'type': 'Data Breach'}