People notified that their private information was affected by Modernizing Medicine's July 2025 data incident can claim two years of medical-data monitoring and choose between an estimated $75 cash payment or reimbursement of up to $5,000 for documented losses. Claims are due November 2, 2026.
The proposed $2,999,750 settlement concerns a targeted cyberattack involving two servers used to move data from retiring electronic-health-record platforms to Modernizing Medicine's current platform. The company denies wrongdoing, and the court has not decided the claims on their merits.
Eligibility is tied to receiving an incident notice
The class consists of living United States residents who were sent notice that their private information was impacted in the July 2025 incident. A person is not included solely because a medical provider used Modernizing Medicine software.
The settlement notice says affected files may have contained names, addresses, birth dates, phone numbers, email addresses and Social Security numbers. It also lists health-insurance information and medical details such as record and account numbers, dates of service, provider names, billing or diagnostic codes, prescriptions, diagnoses and treatment information.
The class excludes Modernizing Medicine directors, officers and agents, related companies, government entities, the assigned judge and court staff, and people who validly opt out.
Monitoring can be combined with either cash option
Every eligible claimant may enroll in two years of CyEx Medical Shield Complete. The service includes medical-identity-theft insurance of up to $1 million with no deductible, monitoring through one credit bureau, dark-web scanning, security-freeze assistance and identity-theft recovery help.
The monitoring benefit is not automatic. A valid claim form is required, and activation information will be distributed only after the settlement becomes final.
In addition to monitoring, a claimant can select one of two cash paths: documented-loss reimbursement up to $5,000 or an alternative cash payment estimated at $75. A claimant cannot collect both cash options.
The $5,000 tier requires third-party records
The documented-loss option covers qualifying out-of-pocket expenses connected to the incident that occurred from July 9, 2025, through November 2, 2026. Examples include unreimbursed identity-theft or fraud losses, credit-report or monitoring fees, costs to freeze or unfreeze credit, replacement identification and postage used to contact financial institutions.
Claims must be supported by contemporaneous third-party material such as receipts, telephone records or correspondence. A personal declaration by itself is not enough, although it can explain records submitted with the claim.
Expenses already reimbursed by another source cannot be paid again. If a documented-loss claim is rejected and not successfully cured, the notice says it will be treated as an election for the alternative cash payment.
The $75 payment needs no loss documentation
People who do not have qualifying records, or who prefer a simpler claim, can request the alternative payment without proving a monetary loss. The notice estimates that benefit at $75.
Neither the $75 estimate nor the amount claimed under the loss tier is guaranteed. Court-approved fees and costs come out of the $2,999,750 fund, and cash payments may be adjusted slightly higher or lower depending on the number and value of valid claims.
The settlement therefore asks consumers to compare the paths before filing. Someone with more than $75 in well-documented, unreimbursed expenses may benefit from the loss tier, while someone without records can still request cash and monitoring.
What the lawsuit alleged
The lawsuit alleges that private information was accessed during the July 2025 attack. The notice describes the incident and the potentially affected data but does not say that every listed data element was exposed for every person.
Modernizing Medicine denies that it did anything wrong. The proposed agreement avoids the expense and uncertainty of continued litigation and is not a finding of liability.
Class members who do not opt out will release claims covered by the settlement. Doing nothing produces no benefits while still binding the person to the release.
Claims are due November 2
Claims can be submitted online or by mail. Online submissions are due November 2, 2026; mailed forms and any supporting records must be postmarked by that date.
The deadline to opt out or object is October 19, 2026. The final approval hearing is scheduled for November 17 at 2:30 p.m. Eastern in West Palm Beach, Florida.
Monitoring activation codes and cash payments will not be distributed unless the court grants final approval and any appeals are resolved.