$650K Highland Health Systems Settlement Wraps Up Data Breach Lawsuit

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Highland Health Systems and two individual defendants have agreed to a $650,000 settlement to wrap up class action litigation that alleged the community mental health center failed to protect sensitive information from a July 2023 data breach.

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The Highland Health Systems class action settlement received an amended preliminary approval from the court on July 1, 2026. Eligible to participate in the settlement are all United States residents whose private information was exposed to unauthorized third parties as a result of the data breach discovered by Highland Health on or about July 3, 2023.

Court documents state that there are approximately 83,543 people in the settlement class.

The court-approved website for the Highland Health class action settlement can be found at HighlandDataBreachSettlement.com.

Highland Health settlement class members who submit a timely, valid claim form can receive up to $5,000 for documented out-of-pocket losses incurred between July 3, 2023 and October 28, 2026 due to the data breach. This benefit covers losses from identity theft or fraud and costs for credit reports, credit monitoring, freezing/unfreezing credit, replacement IDs, postage and more.

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

In lieu of a documented-loss payment, class members can submit a claim form to receive an estimated $85 pro rata cash payment, with no proof required.

The final amount of each class member’s payment may increase or decrease, depending on the total number of valid claims filed, among other factors.

Lastly, all class members can elect on their claim form to receive two years of CyEx Medical Shield Total, which includes three-bureau credit monitoring and medical identity theft insurance.

To submit a Highland Health settlement claim form online, class members can head to this page and enter the login ID and PIN 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.

All Highland Health settlement claim forms must be submitted online or postmarked by October 28, 2026.

The court will determine whether to grant final approval to the Highland Health settlement following a hearing on November 30, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Highland Health Systems class action lawsuit alleged that the Alabama-based community mental health center and two individual defendants failed to implement reasonable cybersecurity measures to protect private information from a July 2023 data breach.

Court documents state that private information that may have been compromised in the data breach included full names, telephone numbers, dates of birth, Social Security numbers, account numbers, payment card numbers and PINs, email addresses and passwords, medical information, health insurance information, tax ID numbers, routing numbers, and driver’s license/state ID numbers.

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