Private radiology practice will pay $3.25M to settle class-action lawsuit over cyberattack
A North Carolina private radiology practice will pay $3.25 million to settle a class-action lawsuit stemming from a recent cyberattack.
Greenville-based Eastern Radiologists first reported news of the data breach in March 2024 after an investigation found hackers had accessed its network. The incident impacted records for upward of 886,000 individuals, with exposed details including Social Security numbers, insurance information and imaging results.
Patients subsequently filed a class-action lawsuit against the radiology group the same month, accusing it of failing to protect private health info. A judge has now granted preliminary approval for a settlement in the case, with a Dec. 15 hearing slated to finalize the matter.
“The plaintiffs and defendant do not agree about the legal claims made in this lawsuit,” attorneys noted in a FAQ document published online to answer individuals’ questions about the case. “The lawsuit has not gone to trial, and the court has not decided in favor of the plaintiffs or defendant.”
Claim Depot first reported news of the settlement on Tuesday, noting that impacted individuals are eligible for payouts of up to $5,000, with a filing deadline of Dec. 1.
Founded in 1954, Eastern Radiologists employs nearly 70 physicians and is a member of Strategic Radiology, joining the private practice coalition in August. A spokesman for the organization could not provide comment on the lawsuit’s resolution by late Wednesday. However, in the settlement agreement, the practice denied any wrongdoing.
“Nonetheless, Eastern Radiologists believes that further litigation would be protracted and expensive, and that it is desirable that the litigation be fully and finally settled in the manner and upon the terms and conditions set forth in this settlement agreement,” the document states. “Eastern Radiologists has considered the uncertainty and risks inherent in any litigation and determined that the litigation should be settled in the manner and upon the terms and conditions set forth in this settlement agreement.”
Eastern Radiologists joins a seemingly growing number of imaging groups facing cyberattacks in recent years. Just this week, additional breaches were reported by Doctors Imaging Group, Gainesville, Florida, and Radiologic Medical Services, Coralville, Iowa (also a member of Strategic Radiology). Private practice leaders recently shared advice on how to address this issue in a piece published by the Journal of the American College of Radiology.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.