$2.5M Bayhealth Medical Center Settlement Ends Litigation Over Data Breach Discovered July 2024

New to ClassAction.org? Read our Newswire Disclaimer

Bayhealth Medical Center has agreed to a $2.5 million settlement to resolve a class action lawsuit over a data breach discovered by the healthcare provider in July 2024 that allegedly allowed an unauthorized third party to access files containing private health information.

Don’t miss the next class action settlement deadline. Sign up for ClassAction.org’s free weekly newsletter.

The Bayhealth class action settlement received preliminary approval from the court on December 18, 2025 and covers all individuals residing in the United States whose personal information may have been compromised in the data breach discovered by Bayhealth in July 2024, including all those who received notice of the breach. According to settlement documents, the private information of approximately 496,261 individuals may have been affected by the data breach.

The court-approved website for the Bayhealth data breach settlement can be found at BayhealthDataIncidentSettlement.com.

Per the settlement website, Bayhealth settlement class members who submit a timely, valid claim form have two options for monetary reimbursement.

The settlement site states that class members who submit with their claim form documented proof of out-of-pocket losses related to the data breach are eligible to receive a one-time cash payment of up to $5,000 in reimbursement. The settlement agreement relays that reimbursable expenses include costs related to identity theft or fraud, purchasing credit monitoring or identity theft protection services, freezing/unfreezing credit, credit reports and other miscellaneous expenses.

Settlement class members may not submit claims for reimbursement of out-of-pocket expenses already reimbursed by another source, the agreement reports.

In place of a claim for documented losses, class members may instead submit a claim for a one-time, pro-rated cash payment of approximately $60. Settlement documents explain that the final amount of each class member’s payout is subject to increase or decrease depending on the amount of money left in the settlement fund after the payment of lead plaintiff service awards, settlement administrative expenses, and attorneys’ fees.

Per the settlement agreement, Bayhealth class members may elect to receive their cash payouts via check or electronic payment, and all checks must be cashed within 60 days of issuance before expiration.

Finally, in addition to any monetary benefits, all Bayhealth settlement class members are eligible to enroll in two free years of medical data monitoring services. The settlement site says the settlement administrator will distribute activation codes, which will remain active for 180 days after issuance, to each eligible class member within 14 days of final approval.

To submit a Bayhealth settlement claim form online, class members can head to this page and enter the unique class member ID as found on their copy of the settlement notice. Alternatively, class members can download a PDF claim form from the settlement site to print, complete, and return by mail to the address of the settlement administrator listed on the first page of the document.

All Bayhealth settlement claim forms must be submitted online or postmarked by April 20, 2026.

The court will hold a hearing to determine whether the Bayhealth settlement will receive final approval on June 5, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Bayhealth class action lawsuit alleged that the Delaware-based healthcare system failed to implement proper cybersecurity measures to safeguard current and former patients’ private information, which resulted in a data breach discovered by the company on or around July 31, 2024.  

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