Eastern Radiologist settled a class action lawsuit on behalf of nearly 890,000 people who were allegedly impacted by a cyberattack that exposed their personal and medical information.
The Superior Court in Pitt County, North Carolina, ordered Eastern Radiologist to pay out the $3.25 million settlement, resulting in up to $5,000 per person affected.
WHY IT MATTERS
The plaintiffs in this case allege that the incident resulted in unauthorized access to personal information and protected health information of approximately 884,935 individuals.
This information includes names, Social Security numbers, home addresses, phone numbers, dates of birth, financial account numbers, driver’s license numbers, patient account numbers, billing account numbers, health insurance plan member ID, medical records, dates of service, provider names and medical treatment information.
Those filing this claim accuse Eastern Radiologist of negligence, breach of implied contract, breach of fiduciary duty, unjust enrichment, invasion of privacy and violations of various North Carolina laws.
Eastern Radiologist denies all charges of wrongdoing or liability in this litigation but decided that further litigation would be “protracted and expensive” and wishes for the matter to be settled.
According to the settlement agreement, “Eastern Radiologists has considered the uncertainty and risks inherent in any litigation and determined that the litigation should be settled in the manner and upon the terms and conditions set forth in this settlement agreement.”
This settlement includes everyone whose private information was impacted by the breach and was notified by or on behalf of Eastern Radiologist.
WHAT TO KNOW
Eastern Radiologist has served the greater Greenville and eastern North Carolina area for 70 years. It employs over 70 board-certified physicians and serves 17 hospitals, seven outpatient centers and 86 points of care in the region.
Plaintiffs allege that the breach occurred between November 20 and November 24, 2023. Eastern Radiologist discovered this data breach/ “unauthorized access” to its computer network on or around November 24, 2023.
Eastern Radiologist contacted patients to inform them of the cyberattack on March 4, 2024, stating they will “continue to take steps to enhance the security of our computer systems,” according to Radiology Business. The notice also promised patients that the company would enhance its network monitoring capabilities and assess and supplement security controls moving forward.
After the plaintiffs filed separate lawsuits relating to the incident, they filed their consolidated complaint on August 10, 2024.
The out-of-pocket losses reimbursement of up to $5,000 covers eligible expenses, including costs related to identity theft or fraud; fees for accessing, freezing or unfreezing credit reports; costs for notary, postage, copying, mileage and other charges; and charges for credit monitoring or other mitigative expenditures. Alternative pro rata payments may also apply.
Those impacted by the incident may submit a claim form and provide documentation.
All class members must provide the ID or pin on the notice they received about the claim. For out-of-pocket reimbursements, third-party documentation showing loss, such as bank statements, receipts or emails, must be provided.
The $3.25 million settlement will be distributed among those impacted. While the administration costs are still to be determined, it will cover up to $1.5 million in attorney’s fees and up to $50,000 in attorney’s expenses.
An urgent care clinic in Santa Fe, New Mexico.
An urgent care clinic in Santa Fe, New Mexico.
Robert Alexander/Getty Images
WHAT HAPPENS NEXT
The deadline to file a claim is December 1, 2025. The hearing to finalize the settlement is set for December 15, 2025.
Those who do not wish to be included in the settlement must submit their exclusion request by October 28, 2025.
Payments to eligible claimants will be distributed about 30 to 60 days after the final settlement approval.
Newsweek reached out to Eastern Radiologists and the legal representation for the plaintiffs for comment.