Millions May Qualify for Compensation in Labcorp Data Breach Settlement

Millions in the United States could be eligible for compensation from a $35 million settlement due to a healthcare data breach involving Labcorp. This settlement addresses claims following a cyberattack at American Medical Collection Agency (AMCA), a third-party billing and collections vendor for Labcorp, which allegedly leaked sensitive personal and medical data from millions of patients. Eligible consumers must submit claims by September 3.

Why the Settlement is Important

Labcorp ranks among the world’s largest diagnostic testing firms, conducting over 750 million tests annually and serving a broad patient base in the US and internationally. Healthcare data breaches are increasingly common, as medical records contain sensitive details like Social Security numbers, insurance, and payment information.

The AMCA breach, according to the settlement, potentially compromised information of about 7.7 million Labcorp patients, posing risks of identity theft and fraud. The settlement offers both cash compensation and free monitoring services to those impacted.

Claims in the Lawsuit

The lawsuit claims Labcorp did not adequately protect patient information sent to AMCA, also known as Retrieval-Masters Creditors Bureau Inc., for billing purposes. AMCA faced a cybersecurity incident that compromised systems containing personal and health data.

For affected patients, stolen medical and personal data risk identity theft and medical identity fraud years later.
— Alex Beene, financial literacy instructor, University of Tennessee at Martin.

Plaintiffs argued the breach increased risks of identity theft and fraud. Labcorp, despite denying any wrongdoing, agreed to a $35 million settlement to settle these claims.

A statement from the settlement website clarifies, “The settlement is not an admission of wrongdoing or an indication that defendant has violated any laws, but rather the resolution of disputed claims.”

Labcorp’s Reach and Impact

Labcorp is one of the global leaders in laboratory services, employing around 71,000 people and running about 2,200 patient service centers nationwide. Performing over 750 million tests annually, the settlement may impact a significant number of Americans who have had testing through Labcorp.

This settlement reminds healthcare organizations that they and their vendors are prime targets for cybercrime, requiring significant financial compensation for affected parties.
— Alex Beene

Eligibility and Deadline

• Personal information was transmitted by Labcorp to AMCA.
• The data resided in AMCA systems compromised between August 2018 and March 2019.

The deadline for claim submission is September 3. Missing this date may result in ineligibility for compensation.

Filing a Claim

Eligible consumers can file claims via the official settlement website. Options include:

• Claiming for documented out-of-pocket losses related to the breach.
• Requesting an alternative cash payment for those without documented losses.

If you received notice your data was involved, or had a Labcorp account handled by AMCA during the specified period, verify eligibility before September. Many eligible individuals often overlook these opportunities by discarding breach notifications.

Compensation Amounts

Eligible members can choose between documented loss claims or alternative cash payments. The final cash amount depends on the number of valid claims submitted.

Payment Timeline

A final approval hearing is set for August 20. Payments typically distribute after court approval and appeal resolutions. The exact payment date is pending, so consumers might wait several months.

Next Steps

Consumers should focus on the September 3 claim deadline. Post-deadline, submissions will be reviewed to determine payouts. Meanwhile, the healthcare sector continues to depend heavily on external billing and tech providers, potentially escalating cyber risks.

Contact Newsweek editors Kate Nalepinski and Edward T. Cummins for more on this story.