$19.3M+ NextGen Healthcare Settlement Ends Class Action Lawsuit Over 2023 Data Breach [UPDATE]

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NextGen Healthcare will pay $19,375,000 to settle a class action lawsuit over a 2023 data breach that exposed the sensitive personal data of over one million people.

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The NextGen Healthcare class action settlement received preliminary court approval on October 30, 2025 and covers the approximately 1,049,396 individuals in the United States identified by NextGen Healthcare as having had their personally identifying information impacted by the data breach.

ClassAction.org will update this page when the official NextGen Healthcare settlement website is live.

Per the settlement benefits plan, NextGen Healthcare settlement class members who submit a timely, valid claim form—which will be made available on the forthcoming settlement website—will be able to receive reimbursement of up to $7,500 for verifiable, unreimbursed out-of-pocket losses that are fairly traceable to the NextGen Healthcare data breach. Eligible class members may also receive reimbursement for up to anywhere from five to 10 hours of lost time spent dealing with certain data breach-related issues, including fraud, identity theft and other misuse of their information, at a rate of $25 per hour, settlement documents state.

Per court documents, up to 10 hours of lost time may be claimed by a class member if the lost time is related to a qualifying out-of-pocket loss claim. Consumers seeking reimbursement for lost time not related to a qualifying out-of-pocket loss claim may receive reimbursement for up to five hours spent dealing with the fallout from the data incident.

In the alternative to receiving a settlement payout for lost-time and out-of-pocket losses, a NextGen Healthcare class member may submit a claim form to receive a one-time, pro-rated cash payment of up to $50. Settlement class members residing in California may receive an alternative cash payment of up to $150, court documents state.

Out-of-pocket losses, the court document explains, must be fairly traceable to the data breach and cannot have already been reimbursed by another source. Data breach-related out-of-pocket losses may include:

• Costs incurred on or after March 29, 2023 that were associated with freezing or unfreezing credit with any credit reporting agency;
• Costs of credit reports, credit monitoring or other products related to the detection or remediation of identity theft incurred between March 29, 2023 and the date the claim is submitted;
• Costs, expenses, losses or charges incurred as a result of identity theft or identity fraud, falsified tax returns or other alleged misuse of a class member’s personal information; and
• Other miscellaneous expenses incurred on or after March 29, 2023 related to other out-of-pocket losses, such as fax, copying, notary, mileage, postage and long-distance telephone charges.

The NextGen settlement benefits plan stipulates that the $50 cash payment is mutually exclusive from the out-of-pocket loss reimbursement and the compensation for time spent, meaning class members who claim reimbursement and/or time spent cannot also claim the cash payment, and vice versa.

Court documents share that all forms of payment from the class action settlement may be subject to increase or decrease on a pro rata, or equal share, basis, depending on the total number of claims filed. Should the lost time and cash payments be increased, the increase will be capped at $599 per claim, the documents say.

In addition to any of the above-listed settlement payments, NextGen settlement class members will be able to enroll in identity defense services for themselves or a minor for whom they are a legal guardian.

The enrollment code for identity defense services will be provided to class members in the official NextGen Healthcare settlement notice, which court documents say will be sent out by December 29, 2025.

A hearing will be held in March 2026 to determine whether the NextGen Healthcare 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 NextGen Healthcare class action lawsuit claimed that the electronic health records company, which services healthcare providers across the United States, employed inadequate data security measures, such that cybercriminals were able to obtain access to the sensitive personal data of approximately 1,049,396 patients between March 29, 2023 and April 14, 2023.

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