$3.1M Palomar Health Settlement Resolves Data Breach Lawsuit Against Arch Health Partners

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Arch Health Partners, which does business as Palomar Health Medical Group, has agreed to a $3.1 million class action settlement to wrap up a lawsuit that alleged the San Diego-area healthcare network is liable for a data breach that occurred between April and May 2024. 

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The Palomar Health class action settlement received preliminary approval from the court on July 17, 2026. Eligible to participate in the settlement are all individuals whose private information was accessed, acquired, disclosed or compromised in the 2024 Palomar Health Medical Group data incident. 

The court-approved Palomar Health settlement website can be found at PHMGDataSettlement.com. 

Class members who submit a timely, valid claim form can receive up to $5,000 in reimbursement for documented losses incurred due to the data breach. 

Class members must submit proof, such as emails or receipts, to receive a documented-loss payout.

In lieu of a documented-loss payment, class members can file a claim for an estimated $60 cash payout, with no proof required. The final amount of each class member’s cash payment will depend on the total number of valid claims filed, among other factors.

Lastly, in addition to any other settlement benefits, all class members can elect on their claim form to receive two years of one-bureau credit monitoring, which includes identity fraud insurance and dark web monitoring. Activation codes for the credit monitoring will be sent to each class member via email after the deal has received final approval from the court and has become effective. 

To submit a Palomar Health claim form online, class members can head to this page and enter the ID and confirmation code found on their copy of the settlement notice. Alternatively, class members can download a PDF claim form to print, complete and return by mail to the settlement administrator. 

Palomar Health settlement claim forms must be filed online or by mail by October 22, 2026. 

The court will decide whether to grant final approval to the Palomar Health data breach settlement following a hearing on November 6, 2026. Settlement benefits will begin to be distributed after the deal has received final approval and any appeals are resolved. 

The class action lawsuit against Arch Health Partners alleged that Palomar Health Medical Group, which runs hospitals, clinics, labs, outpatient centers and nursing facilities in the San Diego area, failed to “properly secure, safeguard, and adequately destroy” personally identifiable and protected health information in its care prior to a data breach that occurred between April 23 and May 5, 2024.  

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