$600K Carolina Arthritis Associates Settlement Resolves Data Breach Class Action Lawsuit

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Carolina Arthritis Associates has agreed to a $600,000 settlement to resolve a class action lawsuit that claimed the North Carolina medical provider failed to safeguard the sensitive patient information stored on its systems from a targeted cyberattack in September 2024.

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The Carolina Arthritis Associates class action settlement received preliminary approval from the court on November 10, 2025 and covers all individuals whose private information was potentially compromised as a result of the September 2024 data breach.

The court-approved website for the Carolina Arthritis Associates data breach settlement can be found at https://CAADataSettlement.com/.

According to the website, Carolina Arthritis Associates settlement class members who submit a valid, timely claim form have multiple options for reimbursement. Those who submit with their claim form documented proof of out-of-pocket losses are eligible to receive a cash payment of up to $5,000, referred to as “Cash Payment A” in all court documents.

Reimbursable documented losses, the agreement explains, must have been incurred between September 27, 2024 and February 23, 2026 as a result of the data breach, and include expenses related to identity theft, fraud, fees for credit reports, credit monitoring, freezing credit, and ID replacement.

In lieu of a documented-loss payment, class members may instead file a claim form for an alternative one-time, pro-rated cash payment of approximately $100, referred to as “Cash Payment B” in all court documents. The final amount of each class member’s payout under this reimbursement option will be based on the total number of valid claims filed and how much remains in the net settlement fund after the payment of attorneys’ fees, lead plaintiff service awards, settlement administration costs, and all other primary benefits, the agreement outlines.

In addition to either monetary settlement benefit, all class members with a valid claim form are also eligible to enroll in two free years of CyEx Medical Shield Complete, which includes one-bureau credit monitoring, dark web scanning, identity theft insurance, and access to fraud resolution agents.

Finally, as part of the class action settlement, Carolina Arthritis Associates has agreed to implement certain business practice changes intended to enhance the data security of its systems and mitigate future data breaches.

To submit a Carolina Arthritis Associates data breach claim form online, class members can head to this page and enter the class member ID and PIN provided on their copy of the settlement notice. Consumers who believe they may be a Carolina Arthritis Associates settlement class member but did not receive a notice can contact the settlement administrator to confirm their identity and receive their login details.

Alternatively, class members may download a PDF of the claim form from the settlement website to print, fill out, and return by mail to the address of the settlement administrator listed on the second page of the document.

All Carolina Arthritis Associates claim forms must be submitted online or by mail by February 23, 2026.

The court will determine whether to grant final approval to the Carolina Arthritis Associates settlement at a hearing on March 10, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The Carolina Arthritis Associates class action lawsuit argued that the Wilmington-based healthcare practice failed to implement reasonable data security measures, which allegedly allowed cybercriminals to initiate a ransomware attack on its network between September 26 and September 30, 2024. Per court documents, the private information potentially compromised as a result of the data breach included names, dates of birth, Social Security numbers, diagnoses, medical history, health insurance information and medical claim forms.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.