McKenzie Health System Data Breach Settlement Offers Compensation to Affected Patients A class action settlement has been reached with McKenzie Health System (operating as McKenzie Memorial Hospital) following a cyberattack in April 2025 that exposed the personal and medical data of over 58,000 current and former patients. The breach compromised sensitive information, including Social Security numbers, dates of birth, and medical records. Eligible individuals those who received a breach notification may file claims for compensation under the settlement. Two payment options are available: up to $4,000 for documented out-of-pocket losses (e.g., identity theft, credit monitoring fees, or fraud-related expenses) incurred between April 14, 2025, and August 24, 2026, or a $50 one-time payment for those without documented losses. Additionally, all class members can opt for two years of free credit monitoring through CyEx Financial Shield Complete, which includes fraud alerts and $1 million in identity theft insurance. Claims must be submitted by August 24, 2026, either online or via mail, using the login ID and PIN provided in the settlement notice. Approved payments will be distributed after the court’s final approval, expected following an October 6, 2026, hearing. The lawsuit alleged that McKenzie Health System failed to adequately safeguard patient data, though the organization denies wrongdoing and settled to avoid prolonged litigation. The settlement fund will cover administrative costs, attorneys’ fees ($350,000), service awards for class representatives ($2,500 each), and payments to claimants.

McKenzie Health System in Michigan was targeted by Avos Locker threat actors and they listed them on their leak site. The files leaked on their leak site contained health insurance information and other protected health information of its 25,318 patients. McKenzie mailed notification letters to the affected patients and uploaded a notice to their website.