Arcare Settlement: $3.9M Deal Resolves Class Action Lawsuit Over 2022 Data Breach

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Arcare, Inc. has agreed to a $3.9 million class action settlement to resolve a lawsuit that alleged the nonprofit community health center failed to adequately protect sensitive information from a data breach that occurred between January and February 2022.  

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The Arcare class action settlement received preliminary approval from the court on August 3, 2026. Eligible for the settlement are all living United States residents who were sent a notice of the Arcare data incident indicating that their private information may have been impacted in the data breach.

Court documents state that approximately 345,000 people were notified by Arcare that their private information may have been impacted in the data incident.

The court-authorized Arcare data breach settlement website can be found at ArcareDataSettlement.com.

Settlement class members who file a timely, valid claim form can receive up to $5,000 for documented, unreimbursed losses incurred due to the data breach.

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 $100 cash payment, with no proof required.

The final amount of each class member’s cash payout may increase or decrease on a pro rata (proportional) basis depending on the total number of valid claims filed, among other factors.

Lastly, all class members can elect on their claim form to receive one year of CyEx Medical Shield Complete, which includes one-bureau credit monitoring, medical data monitoring, identity theft insurance, and more.

To file an Arcare settlement claim form online, class members can navigate to this page and select whether they have the claim 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 Arcare settlement claim forms must be submitted online or postmarked by January 7, 2027.

The court will determine whether to grant final approval to the Arcare class action settlement following a hearing on January 28, 2027. Benefits will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Arcare class action lawsuit alleged that the Augusta, Arkansas-headquartered healthcare provider failed to adequately protect sensitive information from a data breach that reportedly occurred between January 18 and February 24, 2022.

Court documents state that private information that may have been compromised during the data incident included Social Security numbers, driver’s license or state identification numbers, dates of birth, financial account information, medical treatment information, prescription information, medical diagnosis or condition information, and health insurance information.

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