$10M Watson Clinic Settlement Ends Class Action Lawsuit Over 2024 Data Breach

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Watson Clinic will pay $10 million to settle a class action lawsuit over a February 2024 data breach during which an unauthorized third party accessed the sensitive personal information of approximately 280,278 people.

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The Watson Clinic class action settlement received preliminary court approval on October 14, 2025 and covers all United States residents who were notified of the data breach by Watson Clinic.

Per the settlement agreement, Watson Clinic settlement class members who submit a timely, valid claim form will be able to receive a cash payment for leaked digital images; reimbursement for “ordinary” out-of-pocket losses, “extraordinary” losses and time spent dealing with the effects of the data breach; and a residual cash payout from the remainder of the $10 million settlement fund.

Any class member who had one or more images of any portion of their body published on the dark web due to the Watson Clinic data breach will be able to receive varying cash payment amounts based on what kinds of photos were leaked:

• $75,000 for those who had at least one image published containing their full face (including their eyes) and an exposed sensitive area;
• $40,000 for those who had at least one image published containing part of their face (below the eyes) and an exposed sensitive area;
• $10,000 for those who had at least one image published containing an exposed sensitive area and none of their face, or for those who had at least one image published containing their face (including eyes) and a sensitive portion of their body covered by undergarments;
• $7,500 for those who had at least one image published containing part of their face (below the eyes) and a sensitive portion of their body covered by undergarments;
• $5,000 for those who had at least one image published containing a sensitive portion of their body covered by undergarments and none of their face; and
• $100 for those who had at least one image published containing any part of their body that did not include their face or a sensitive area.

Watson Clinic class members do not need to submit a claim form to receive reimbursement for the leak of digital images due to the data breach, court documents state.

The class action settlement agreement also states that class members will be able to claim up to $500 in reimbursement for “ordinary” out-of-pocket losses related to the data breach, which may include costs associated with freezing/unfreezing credit reports with any credit reporting agency, credit monitoring or other mitigative costs and miscellaneous expenses incurred in relation to other ordinary out-of-pocket losses such as postage, mileage, copying, fax, notary and long-distance telephone charges.

Class members may also, if applicable, claim up to $6,500 in reimbursement for identity theft, identity fraud, falsified tax returns or other misuses of their personal data resulting from the Watson Clinic data breach.

In order to receive any form of reimbursement from the Watson Clinic settlement, class members must submit reasonable documentation of each loss they seek to claim, as well as their name and current address, a brief description of each loss (if the nature of the loss isn’t apparent in the documentation) and evidence that each loss is fairly traceable to the data breach.

Class members may not attempt to claim any loss that has already been reimbursed by another source, and any loss, cost or expenditure they seek to claim must have been incurred on or after January 26, 2024, settlement documents state.

Those claiming reimbursement for extraordinary losses may also submit a claim for up to five hours spent dealing with the effects of the data breach, reimbursed at a rate of $25 per hour. Such claims must be supplemented with a brief description of the actions taken in response to the data breach and the amount of time associated with each action, per court documents.

The settlement agreement notes that all loss and time reimbursement options may be subject to a decrease on a pro rata, or equal share, basis, depending on the number of valid claims filed.

Finally, all class members will be able to submit a claim for a residual cash payment from the remainder of the settlement fund after image payments and reimbursements are made. These payments will be made on a pro rata basis, and the court estimates their value may be up to $50.

To receive any settlement benefits, class members must submit a timely, valid claim form by mail or online through the Watson Clinic class action settlement website, once it is available.

ClassAction.org will update this page when the official Watson Clinic settlement website is launched.

According to the preliminary approval order for the Watson Clinic settlement, class members will have until February 5, 2026 to submit a claim.

Watson Clinic has also agreed, as part of the settlement, to implement increased cybersecurity measures in its digital systems and business practices over the course of three years following the settlement’s final approval.

A hearing is scheduled for March 9, 2026 to determine whether the settlement will receive final approval from the court. Settlement benefits will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Watson Clinic class action lawsuit claimed that the healthcare provider was negligent in its data security, allowing an unauthorized third party to gain access to 280,278 current and former patients’ sensitive and personally identifiable information. The compromised data included names, birthdates, addresses, Social Security numbers and other government identifiers, financial account information, driver’s license numbers and medical information such as diagnoses, treatments and medical record numbers, the case said.

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