FMC Services Pays $2,150,000 to Settle Its Data Breach Litigation
FMC Services, LLC has agreed to a $2,150,000 settlement to resolve litigation arising from a July 2022 data breach involving Family Medicine Centers in Texas.
Data Breach Settlement Resolution
FMC Services, LLC, doing business as Family Medicine Centers, agreed to a settlement valued at $2,150,000 to address claims connected to a cybersecurity incident that occurred in July 2022. The settlement addresses consolidated litigation tied to allegations involving the handling of personal data and medical data following unauthorized network access.
Incident and Data Exposure
Family Medicine Centers identified a data security incident on or around July 26, 2022, involving unauthorized access to its network systems. The systems contained personally identifiable information (PII) and protected health information (PHI), including names, mailing addresses, birth dates, Social Security numbers, and medical information.
The breach report submitted to the U.S. Department of Health and Human Services’ Office for Civil Rights indicated that 233,948 individuals were affected. Notification letters were issued to 266,540 individuals.
Litigation Background
Because of the incident, FMC Services faced multiple lawsuits, which were consolidated into a single case titled Sharber, et al. v. FMC Services, LLC in the District Court of Potter County, Texas.
The consolidated lawsuit included allegations of inadequate data security measures and resulting to unauthorized access and data theft. The claims included breach of fiduciary duty, negligence, negligence per se, unjust enrichment, and breach of implied contract. The lawsuit seeks monetary damages, declaratory relief, injunctive relief, statutory damages, equitable relief, and punitive damages.
FMC Services, LLC denied all allegations, including claims of wrongdoing, fault, and liability.
Settlement Terms and Class Member Options
The settlement establishes a $2,150,000 fund to provide payments to class members after deductions for attorneys’ fees and expenses, service awards for four class representatives, settlement administration and notification costs.
Class members could file claims to reimburse documented, unreimbursed expenses linked to the data breach, with a maximum reimbursement amount of $5,000 per person. Class members who do not submit reimbursement claims may submit a claim for an alternative cash payment estimated at approximately $75 per class member, with final amounts dependent on remaining funds after other payments are allocated.
Class members may also submit a claim for a two-year membership to a medical data monitoring service in addition to a cash payment option.
In mid-2024, the parties began settlement discussions. A mediation session occurred, but did not produce an agreement. Following continued litigation activity, including discovery and a denied motion for summary judgment, the parties entered a second mediation process that led to agreed settlement terms.
The settlement received preliminary court approval. A final fairness hearing is scheduled for September 15, 2026. Class members must file claims by August 31, 2026. Objection to or exclusion oneself from the settlement must be requested by August 17, 2026.