Dameron Hospital Will Pay $650,000 to Resolve Class Action Data Breach Lawsuit
Dameron Hospital in California has consented to pay $650,000 to resolve a lawsuit as a result of a cyberattack and data breach that happened on or about December 2023. The 200+ bed hospital based in Stockton, California, reported in December 2023 its investigation of a cyberattack that disrupted its critical systems. Following the report, on January 15, 2024, the Carmona v. Dameron Hospital Association d/b/a Dameron Hospital lawsuit was filed in connection with the incident before the issuance of notification letters.
The lawsuit alleges the breached data in the incident involved names, telephone numbers, addresses, email addresses, birth dates, Social Security numbers, payment/account details, medical insurance data, and medical data. By April 23, 2025, there is still no breach report posted on the HHS’ Office for Civil Rights breach website linked to Dameron Hospital or Dameron Hospital Association. The lawsuit states the accused did not carry out and maintain acceptable network safety measures, did not adhere to industry-required cybersecurity procedures, did not encrypt sensitive information, or offer sufficient training to employees. When the breach happened, it did not identify the incident promptly.
The lawsuit stated claims of negligence and negligence per se, unjust enrichment, breach of fiduciary duty, breach of implied contract, violations of the California Consumer Privacy Act, California Customer Records Act, California Confidentiality of Medical Information Act, California Consumer Legal Remedies Act, and the California Unfair Competition Law. As per Dameron Hospital, it rejects all allegations and stick to the belief that it did no wrong. Nevertheless, the hospital negotiated a settlement to steer clear of more legal expenditures and the uncertainty and risks related to ongoing the litigation.
The terms of the settlement allow class members to file a claim for refund of as much as $5,000 for unreimbursed monetary deficits brought on by the data breach, and complimentary 3-bureau credit monitoring services for one year. Otherwise, class members could opt to file for a $50 cash payment for non-California locals and $100 for California citizens. The schedule of the final fairness hearing is on May 29, 2025.