$2.75M American Addiction Centers Settlement Resolves Class Action Lawsuit Over 2024 Data Breach
In re American Addiction Centers, Inc. Data Breach Litigation
Filed: February 18, 2025 ◆§ 3:24-cv-01505
American Addiction Centers will pay $2.75M to settle a class action lawsuit over a data breach that allegedly exposed patients’ private information.
Health Insurance Portability and Accountability Act Federal Trade Commission Act Health Information Technology Act
Tennessee
American Addiction Centers has agreed to a $2.75 million settlement to resolve a class action lawsuit over a data breach discovered in September 2024 that allegedly compromised sensitive patient information.
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The American Addiction Centers class action settlement received preliminary court approval on December 5, 2025, and covers all individuals whose private information was potentially compromised as a result of the data breach, including those to whom American Addiction Centers sent a notice of the data breach in late 2024. Settlement documents indicate there are approximately 423,064 class members.
The court-approved website for the American Addiction Centers class action settlement can be found at AACSettlement.com.
Per the website, American Addiction Center settlement class members who submit a timely, valid claim form and proof of documented out-of-pocket losses incurred because of the data breach are eligible to receive a one-time cash payment of up to $5,000. Settlement documents state that reimbursable expenses include, but are not limited to, losses from fraudulent transactions, bank fees, postage, notary fees, and credit repair services.
All American Addiction settlement class members are eligible to receive an additional one-time, pro-rated cash payment of approximately $50. The final amount of this cash payment, the agreement outlines, will be an equal portion of what remains in the net settlement fund after the payment of attorneys’ fees, settlement administration costs, lead plaintiff service awards, and the cost of all other settlement benefits.
Finally, in addition to any cash payouts, the settlement site relays that all class members may elect to enroll in two years of free credit monitoring and identity theft protection. Settlement documents note that this benefit is available to all class members, regardless of whether they previously enrolled in the credit monitoring services offered in the data breach notice sent out by American Addiction Centers.
To submit an American Addiction Centers claim form online, class members can head to this page and enter the unique class member ID found on their copy of the settlement notice. Alternatively, class members can download a PDF claim form here to print, complete, and return by mail to the address of the settlement administrator listed on the first page of the document.
All American Addiction Centers settlement claim forms must be submitted online or postmarked by March 23, 2026.
The court will determine whether to grant final approval to the American Addiction Centers data breach settlement at a hearing on April 20, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.
The American Addiction Centers class action lawsuit claimed that the addiction treatment center chain did not take necessary precautions to protect patients’ and employees’ private information, leading to a data breach discovered around September 26, 2024. According to the suit, the personal information that may have been compromised in the breach included names, dates of birth, Social Security numbers, contact information, medical record numbers or identifiers, treatment information, and health insurance information.
Head to ClassAction.org’s settlements page for a complete list of data breach settlements.
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