Back Mcknightsseniorliving $5.3 million settlement in PharMerica data breach gets preliminary approval by federal judge
A federal judge has preliminarily approved a $5.3 million settlement related to a 2023 data breach that compromised the personal information of 5.8 million PharMerica customers and employees.
The preliminary approval , signed by US District Court Judge Rebecca Grady Jennings, was filed Monday in US District Court for the Western District of Kentucky, Louisville Division.
The long-term care pharmacy provider experienced a data breach in March 2023 , with ransomware group Money Message claiming responsibility. The hackers uploaded screenshots showing portions of a customer-related data table that included names, Social Security numbers, birthdates, and Medicaid and Medicare numbers.
Various individual complaints filed in the wake of the data breach were consolidated in July 2023, and an amended consolidated class action complaint was filed in January 2024. Formal mediation in August 2025 resulted in the proposed settlement agreement.
The agreement creates a $5.3 million fund that will cover administrative costs, service awards to class representatives, attorneys fees and PharMerica data-mining costs.
In addition to the fund, PharMerica will pay documented out-of-pocket claims up to $10,000 per class member as well as one year of Kroll Complete Monitoring on a claims-made basis. Kroll Complete Monitoring includes credit monitoring, dark web monitoring, pay day loan monitoring, a Social Security scan, fraud consultation, identity theft restoration services, insurance coverage for fraud and identity theft, and credit score reporting.
The proposed settlement also requires PharMerica to change some business practices related to information security, to safeguard the personal information on its systems.
Settlement notices will go out to affected individuals beginning Feb. 10. A final hearing on the proposed settlement is scheduled for May 12.
PharMerica serves the assisted living, skilled nursing, hospital, infusion, hospice, behavioral, specialty and oncology pharmacy markets. The company operates more than 180 long-term care pharmacies across all 50 states.
PharMerica had not responded to a request for from McKnight’s Senior Living as of the production deadline .
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