Washington Gastroenterology to pay $4.6 million over 2024 data breach

Washington Gastroenterology agreed to a $4.6 million settlement over a 2024 data breach that compromised the personal data of over 580,000 individuals.

In October 2024, Washington Gastroenterology experienced a data breach after an unauthorised third party accessed sensitive information. An investigation determined that the threat actor accessed and acquired personal information of over 580,000 individuals, including their names, Social Security numbers, financial and banking details, medical records, and health insurance information

A class action lawsuit was subsequently filed against Washington Gastro in the Superior Court of Washington, County of Pierce, alleging that the healthcare provider failed to maintain adequate safeguards to protect patients’ personal information. The suit further claims that Washington Gastro did not implement reasonable and appropriate cybersecurity measures, which contributed to the data breach.

While Washington Gastro denied any wrongdoing or negligence, both sides agreed to settle the case to avoid the costs and risks of continued litigation and allow Class members to receive benefits under the settlement.

As part of the settlement, Washington Gastro will create a $4.6 million settlement fund to pay eligible claims submitted by class members, in addition to covering settlement administration expenses, attorneys’ fees and costs, and any court-approved service awards.

Under the settlement, eligible class members may receive an estimated $75 pro rata cash payment without documentation, subject to adjustments based on the number of valid claims and available settlement funds.

Eligible class members may also seek reimbursement of up to $4,000 for documented out-of-pocket losses linked to the data breach, including identity theft losses, bank fees, postage, and professional expenses. Additionally, they may claim two years of medical record and credit monitoring services.

The proposed settlement has been granted preliminary approval by the court but has not yet become final. A final approval hearing is scheduled for January 29, when the court will decide whether to approve the settlement.

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