New York City-based East River Medical Imaging has agreed to pay $1.85 million to settle a proposed class action lawsuit that alleged negligent cybersecurity.
According to an Oct. 17 news release, the ERMI experienced a breach of private patient and employee data between Aug. 31 and Sept. 20, 2023, that affected 600,000 people.
The settlement was given preliminary court approval in June and covers all U.S. residents whose personal information was compromised by the breach.
ERMI disclosed the breach in November 2023, and those impacted have until Oct. 22, 2024, to submit a claim form. In addition to cash benefits, patients and employees affected by the breach can claim one year of credit monitoring and insurance services. ERMI also agreed to implement enhanced cybersecurity measures as a part of the settlement.
Breached data included names, contact information, insurance data, medical exam and procedure data and Social Security numbers, among other sensitive personal and medical data. The lawsuit claimed that the practice failed to properly secure the data, which led to a third party gaining access to ERMI's computer network.
A final approval hearing for the case will take place on Oct. 22.