Nearly $3M Modernizing Medicine Settlement Resolves Data Breach Lawsuit Over 2025 Cyber Incident

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Modernizing Medicine, Inc. has agreed to a nearly $3 million class action settlement to wrap up litigation that alleged the healthcare software company failed to adequately protect private data on its servers from a targeted cyberattack in July 2025. 

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The $2,999,750 ModMed class action settlement received preliminary approval from the court on June 29, 2026. Eligible to participate in the settlement are all living individuals in the United States who were sent a notice of the Modernizing Medicine data breach indicating that their private information was impacted in the incident. 

The court-approved website for the ModMed data breach settlement can be found at ModernizingMedicineDataSettlement.com.

Settlement class members who file a valid, timely claim form can receive up to $5,000 in reimbursement for documented out-of-pocket losses incurred between July 9, 2025 and November 2, 2026 due to the ModMed data breach. This benefit covers losses caused by identity theft or fraud and costs for credit reports, credit monitoring, freezing/unfreezing credit, replacing IDs and more. 

Data breach settlement 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 submit a claim form for an estimated $75 pro rata cash payout, with no proof required. 

The final amount of each class member’s cash 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 Complete, which includes medical identity theft insurance, one-bureau credit monitoring and access to fraud resolution agents. 

To submit a Modernizing Medicine 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 mail to the settlement administrator.

ModMed settlement claim forms must be filed online or by mail by November 2, 2026.

The court will determine whether to grant final approval to the Modernizing Medicine data breach settlement following a hearing on November 17, 2026. Class action settlement payouts will begin to be distributed after the deal receives final approval and any appeals are resolved. 

The data breach lawsuit against Modernizing Medicine alleged that the Boca Raton, Florida-based software company, which provides cloud-based electronic medical record systems and administrative tools, “lost control” over current and former patients’ personally identifiable information amid a targeted cyberattack spanning July 9 and July 10, 2025. 

The class action suit alleged that ModMed “failed to adequately train its employees on cybersecurity and failed to maintain reasonable security safeguards or protocols,” leading to the unauthorized exposure of names, addresses, dates of birth, Social Security numbers, health insurance details, medical data, prescription/medication information, diagnoses and more. 

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