Dental Group of Amarillo, a community of six dental and orthodontic clinics in Dumas, Amarillo, and Canyon in Texas, decided to pay $1,000,000 to resolve a class action litigation filed in association with a cyberattack and data breach in 2023.
Hacking into its network occurred from October 3, 2023 to October 19, 2023. Dental Group of Amarillo confirmed on January 9, 2024 exposure and potential theft of patient names, contact details, driver’s license numbers, Social Security numbers, and medical insurance data, and medical data (such as x-rays, medical backgrounds, dates of service). The data breach report submitted to the HHS’ Office for Civil Rights indicated that 3,821 patients’ protected health information (PHI) was affected.
The Barham v. Dental Group of Amarillo, LLP lawsuit was filed in the 251st Judicial District Court, Potter County, Texas. Allegations presented in the lawsuit include negligence for
- failing to protect protected health information (PHI) and personally identifiable information (PII)
- giving an inadequate response to the incident, since the data breach was confirmed only on January 9, 2024
- sending late notifications as the HHS was notified only on March 6, 2024, which is 60 days after breach confirmation, and 132 days after discovering the cyberattack. Breach notification letters were sent on May 9, 2024, which is 196 days after the cyberattack was discovered. The delay was claimed to be a violation of HIPAA and the Tex. Bus. & Com. Code Ann. § 521.053.
Besides negligence, the lawsuit stated claims of breach of fiduciary duty, breach of implied contract, negligence per se (violations of the FTC Act, the Texas Identity Theft Enforcement and Protection Act, and HIPAA), and unjust enrichment. Dental Group of Amarillo does not admit to any wrongdoing, but has decided to settle the lawsuit to avoid the disruptions, expenses, risks, and uncertainties associated with prolonged litigation. The lawyers and the lead plaintiffs agreed that the settlement was acceptable for class members for the same reasons.
The terms of the settlement require Dental Group of Amarillo to create a $1,000,000 settlement fund to pay for the $333,333 max. attorneys’ fees, attorneys’ expenses (not yet decided), $2,500 service awards for each class representative, settlement administration expenses (not yet decided), payments to class members, and credit monitoring services.
Two possible cash payments are being offered. Class members could file a claim for approximately $5,000 for refund of documented, unreimbursed monetary expenses. Otherwise, they may opt for a cash payment, which is likely to be around $125 for each class member. The cash payments are adjusted pro rata and may be higher or lower based on the number of eligible claims filed.
Besides a cash payment, class members could get three years of three-bureau credit monitoring services, including medical identity monitoring, dark web monitoring, public record monitoring services, plus an identity theft insurance plan. The last day to opt out of or object to the negotiation is September 29, 2025. Claim may be submitted on or before October 13, 2025. The schedule of the final approval hearing is October 27, 2025. For more details about the settlement, visit dgadatasettlement.com
Image credit: Friends Stock, AdobeStock
