Chattanooga Heart Institute Settles $3.75M Data Breach Lawsuit Affecting 460,000 Individuals
Chattanooga Heart Institute (operating as Memorial Heart Institute LLC) has agreed to a $3.75 million settlement to resolve a class action lawsuit stemming from a data breach that exposed the personal and medical information of approximately 460,000 current and former patients and employees. The breach occurred between March 8 and March 16, 2023, and the settlement covers affected individuals whose data may have been compromised.
Eligible class members include those whose private information was exposed, with a separate subclass for individuals whose Social Security numbers were accessed. The settlement allocates $2 million specifically for the SSN subclass, while the remaining $1.75 million covers the broader class.
Affected individuals can file claims for:
- Up to $5,500 in reimbursement for documented losses (e.g., identity theft protection, fraud-related expenses, or financial losses).
- Two years of credit and dark-web monitoring, valued at approximately $120.
- A pro rata cash payment from the $2 million SSN subclass fund, with the final amount determined by the number of claims filed.
Claims must be submitted online or by mail by July 13, 2026, with payments expected approximately 105 days after final court approval, scheduled for May 28, 2026. The settlement also includes up to $1.25 million in attorneys’ fees, $50,000 in expenses, and $4,500 service awards for class representatives.
While Chattanooga Heart Institute denies wrongdoing, the settlement was reached to avoid further litigation. The breach allegedly resulted from inadequate data protection measures, though the exact cause remains undisclosed.
Source: https://www.claimdepot.com/settlements/chattanooga-heart-settlement
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"id": "MEMTHE1776272311",
"linkid": "memorial-hospital-chattanooga-tn, thechattanoogaheartinstitute",
"type": "Breach",
"date": "3/2023",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'customers_affected': '460,000',
'industry': 'Healthcare',
'location': 'Chattanooga, Tennessee, USA',
'name': 'Chattanooga Heart Institute (Memorial Heart '
'Institute LLC)',
'type': 'Healthcare Provider'}],
'customer_advisories': 'Claims for reimbursement and monitoring services '
'available to affected individuals',
'data_breach': {'number_of_records_exposed': '460,000',
'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High',
'type_of_data_compromised': ['Personal information',
'Medical information',
'Social Security numbers']},
'date_detected': '2023-03-16',
'description': 'Chattanooga Heart Institute (operating as Memorial Heart '
'Institute LLC) has agreed to a $3.75 million settlement to '
'resolve a class action lawsuit stemming from a data breach '
'that exposed the personal and medical information of '
'approximately 460,000 current and former patients and '
'employees. The breach occurred between March 8 and March 16, '
'2023, and allegedly resulted from inadequate data protection '
'measures.',
'impact': {'data_compromised': 'Personal and medical information, Social '
'Security numbers',
'financial_loss': '$3.75 million settlement',
'identity_theft_risk': 'High (SSN exposure)',
'legal_liabilities': 'Class action lawsuit'},
'investigation_status': 'Settled',
'post_incident_analysis': {'root_causes': 'Inadequate data protection '
'measures'},
'references': [{'source': 'Settlement announcement'}],
'regulatory_compliance': {'legal_actions': 'Class action lawsuit'},
'title': 'Chattanooga Heart Institute Data Breach Lawsuit Settlement',
'type': 'Data Breach'}