$14M Independent Living Systems Settlement Ends Lawsuit Over 2022 Data Breach

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A $14 million settlement has been reached to resolve a consolidated class action lawsuit over a data breach discovered by health services company Independent Living Systems (ILS) in July 2022.

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The ILS data breach settlement covers a class of approximately 3.9 million United States residents whose personal information was exposed or potentially accessed during the incident.

To receive cash benefits from the deal, eligible class members must submit a timely, valid claim form by mail or online through the court-approved ILS settlement website—ILSDataBreachSettlement.com—once it is launched.

ClassAction.org will update this page when the official ILS settlement website is established.

According to the settlement agreement, class members can file a claim form for reimbursement of up to $5,000 for documented out-of-pocket losses incurred on or after June 30, 2022 that have not been reimbursed previously and are “reasonably attributable” to the data breach. Per the agreement, qualifying losses may include costs related to credit monitoring services or credit freezes; fees linked to late payments, declined payments, overdrafts, returned checks, customer service or card cancellation or replacement; unauthorized charges on payment cards; parking expenses or transportation costs resulting from visits to a financial institution to address fraud or replace a payment card; and other miscellaneous losses.

Related Reading: Independent Living Systems Data Breach Sparks Class Action

Moreover, consumers who submit a timely, valid claim form will be eligible to receive a pro-rated share of what remains of the settlement fund after payments are made for out-of-pocket loss claims, court documents relay. Class members who resided in California on June 30, 2022 are entitled to receive two pro-rated shares, while all other claimants will receive one share, the settlement agreement says.

Individual payout amounts are subject to adjustment depending on the total number of valid claims that are filed, the agreement adds.

The deal with ILS received preliminary court approval on July 3, 2025. The parties now await a hearing on November 17, 2025, at which time the court will decide whether to grant final approval to the settlement terms.

Related Reading: Independent Living Systems to Blame for Data Breach Affecting 4M People, Class Action Says

According to court documents, notice of the settlement will be issued to eligible class members via mail or email within 30 days of the date the deal received preliminary approval. Consumers will then have 90 days following the date of mailing to submit an ILS settlement claim form, the agreement says.

The class action lawsuit against ILS alleged that negligent data security on the company’s part resulted in the cyberattack, during which an unauthorized third party gained access to certain files stored on ILS’ computer systems.

The settlement agreement says the incident may have exposed individuals’ names, dates of birth, Social Security numbers, taxpayer identification numbers, medical diagnoses, conditions or treatment information, health insurance details and other confidential data.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.