Anne Arundel Dermatology Settles $2.4M Class Action Over 2025 Data Breach Anne Arundel Dermatology P.A. has agreed to a $2.4 million settlement to resolve a class action lawsuit stemming from a data breach that exposed the personal and health information of an estimated 1.9 million current and former patients. The breach occurred between February 14 and May 13, 2025, when unauthorized third parties accessed the company’s systems, potentially compromising sensitive data. Who Is Eligible? Individuals in the U.S. who provided personally identifiable information (PII) or protected health information (PHI) to Anne Arundel Dermatology on or before December 9, 2025, may qualify for compensation. This includes those whose data was collected, received, or stored by the company by that date. Compensation Options Eligible class members can choose from three benefit options: - Cash Payment A (Up to $5,000): Reimbursement for documented out-of-pocket losses, including fraud-related expenses, credit monitoring fees, legal costs, and identity theft recovery. - Cash Payment B (Pro Rata Share): A $100 estimated payment for those without documented losses, with the final amount determined by the number of claims filed. - Medical Data Monitoring: Three years of CyEx Medical Shield Complete, covering credit monitoring, dark web scanning, medical record monitoring, and identity theft insurance up to $1 million. Claim Process & Deadlines Claims must be submitted online or via mail by July 8, 2026, with supporting documentation required for out-of-pocket loss claims. Payments and monitoring services will be distributed approximately 90 days after final court approval, expected following a fairness hearing on July 16, 2026. Settlement Fund Allocation The $2.4 million fund will cover: - Up to $800,000 for settlement administration costs. - Attorney fees and expenses (to be determined by the court). - $1,500 service awards for each class representative. - Remaining funds for approved claimants and medical monitoring services. Background & Allegations Plaintiffs alleged Anne Arundel Dermatology failed to implement adequate security measures, leading to the breach. The company denied wrongdoing but settled to avoid prolonged litigation. The incident highlights ongoing risks in healthcare data security and the financial consequences of inadequate protections.

Anne Arundel Dermatology Settles $2.4M Class Action Over 2025 Data Breach Anne Arundel Dermatology PA, a Maryland-based healthcare provider, has agreed to a $2.4 million settlement in a proposed class action lawsuit alleging negligence in protecting the personal data of over 1.9 million individuals exposed in a 2025 breach. The deal, granted preliminary approval by U.S. District Court Judge George L. Russell III, resolves claims that the company failed to implement adequate security measures to prevent the incident. Under the settlement terms, affected individuals classified as "class members" may receive up to $5,000 in compensation for documented out-of-pocket losses tied to the breach. Alternatively, they can opt for a $100 cash payment. The breach, which compromised sensitive personal information, has raised concerns about healthcare data security and the financial repercussions of inadequate cybersecurity protocols. The case underscores the growing legal and financial risks organizations face following data breaches, particularly in the healthcare sector, where regulatory scrutiny and class action litigation are increasingly common. The settlement awaits final court approval.