Drug and Alcohol Treatment Services Agrees to Settle Data Breach Class Action Litigation
Drug and Alcohol Treatment Services, Inc. (DATS) has agreed to settle a class action litigation related to an October 2024 ransomware attack that affected employees and patients, resulting in the exposure of personal data and protected health information (PHI)
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Settlement Agreement
Drug and Alcohol Treatment Services, Inc., a provider of drug and alcohol addiction services based in Scranton, Pennsylvania, reached a proposed settlement following class action litigation arising from an October 2024 ransomware attack.
The incident resulted in the theft of personal information and protected health information belonging to employees and patients. The information reported as exposed or stolen included names, birth dates, Social Security numbers, medical insurance information, patient account numbers, medical billing and claims information, prescription and medication details, and diagnosis and treatment data.
The U.S. Department of Health and Human Services Office for Civil Rights was notified that 22,215 patients were affected by the incident.
Litigation Claims
DATS faced eight class action lawsuits after the data breach. The cases were consolidated into a single action filed in the Court of Common Pleas of Lackawanna County, Pennsylvania.
The consolidated lawsuit titled Leo Woytach, et al v. Drug and Alcohol Treatment Services, Inc. filed claims for unjust enrichment, negligence, negligence per se, breach of confidence, breach of contract, breach of implied contract, and breach of fiduciary duty.
Drug and Alcohol Treatment Services, Inc. denies the allegations asserted in the litigation and maintains that it did not engage in wrongdoing.
Settlement Terms
The proposed settlement was reached after settlement negotiations and a full day of mediation.
Under the agreement, Drug and Alcohol Treatment Services, Inc. will establish a settlement fund totaling $549,000.
The settlement fund will be used to pay settlement management and notification costs, attorneys’ fees and expenses, and the service awards for eight class representatives. The remaining funds will be distributed for class member benefits in accordance with the settlement terms.
The settlement applies to individuals who received notification about the data breach.
Eligible class members may submit a valid claim for reimbursement of documented and unreimbursed losses attributed to the data breach up to a maximum of $5,000 for each class member.
Eligible class members may also choose to receive a pro rata cash payment instead of seeking reimbursement for documented losses. The amount of each pro rata payment will vary according to the number of eligible claims submitted.
The settlement also provides eligible class members with a 12-month membership to a medical data monitoring service at no cost.
Settlement Schedule
The deadline for class members to file an objection to the proposed settlement or request exclusion from the settlement is August 25, 2026.
The deadline for submitting a claim is September 24, 2026.
A final fairness hearing is scheduled for November 24, 2026.
The settlement was reached following negotiations between the parties. The agreement states that resolving the litigation allows the parties to avoid the costs, burdens, distractions, and risks associated with trial proceedings and any related appeals. Drug and Alcohol Treatment Services, Inc. continues to deny the claims asserted in the litigation while participating in the proposed settlement.