$15.35M Shields Health Group Settlement Aims to Resolve Data Breach Lawsuit Over March 2022 Cyberattack

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Shields Health Group, Inc. has agreed to pay a $15.35 million settlement that, if approved by the court, will resolve a consolidated class action lawsuit over a March 2022 data breach.

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If approved, the proposed data breach settlement will cover a class of more than 2.3 million United States residents—including those in any U.S. state or territory, except Massachusetts—that Shields identified as potentially having had their personal information compromised in the incident. Massachusetts residents will be covered by a separate Shields Health Group data breach lawsuit pending in state court, the settlement agreement notes.

If the $15,350,000 deal is approved, class members who submit a timely, valid claim form by mail or online through the court-authorized Shields data breach settlement website will be eligible to receive reimbursement and other cash benefits, the agreement says.

ClassAction.org will update this page if and when the official Shields settlement website is launched.

According to the settlement agreement with Shields, class members may file a claim form to receive up to $2,500 per person for “ordinary” out-of-pocket expenses that were incurred while responding to the data breach and are supported by documentation. Per the agreement, qualifying losses may include costs associated with accessing, freezing or unfreezing credit reports; charges for credit monitoring services; or miscellaneous fees such as postage, fax, copying, mileage or phone expenses.

In addition, consumers may submit a Shields claim form to receive compensation for up to five hours of time spent handling issues related to the incident, at a rate of $30 per hour, subject to the $2,500 cap for ordinary losses, court documents share.

Moreover, class members can file a claim form to receive reimbursement of up to $25,000 for “extraordinary” losses, including unreimbursed expenses that are “fairly traceable” to the data breach and related to identity theft, fraud and other misuse of personal information, the settlement agreement states.

Consumers may submit a claim for compensation for up to 20 hours of time spent responding to these extraordinary losses, at a rate of $30 per hour, subject to the $25,000 maximum, the document relays.

According to the agreement, benefits regarding extraordinary losses and time spent addressing them may be claimed together with ordinary out-of-pocket expenses and lost time, but any combination of benefits will be capped at the $25,000 maximum and 20-hour limit for attested time.

Related Reading: Shields Health Care Group Hit with Class Action Over March 2022 Data Breach

Court documents add that in lieu of reimbursement for monetary losses or lost time, class members may opt for a $50 cash payment.

All settlement payouts are subject to pro rata adjustment based on the total number of claims that are filed, the agreement notes.

Should the deal with Shields be approved by the court, the healthcare company has also agreed to enhance its data security and improve certain business practices to prevent future incidents, the document explains.

The plaintiffs submitted an unopposed motion and memo outlining the terms of the Shields class action settlement on May 15, 2025. It is now up to the court to decide whether to grant preliminary approval to the deal.

Per court documents, notice of the Shields settlement will be issued to eligible class members within 30 days after the deal receives preliminary court approval. Consumers will then have 75 days from the date of mailing to file a Shields settlement claim form, the agreement adds.

The Shields class action lawsuit alleged the healthcare company failed to protect patients’ private data during a cyberattack that took place between March 7 and March 28, 2022. The class action suit contended that as a result of Shields’ negligent data security, impacted individuals faced a greater risk of identity theft, fraud and other illegal activity at the hands of cybercriminals.

Head to ClassAction.org’s settlements page for a complete list of data breach settlements.