CaptureRx proposes $4.75M settlement over breach that affected 2.4 million patients

CaptureRx, a health IT company that helps hospitals manage their 340B drug discount programs, on Feb. 11 proposed a $4.75 million settlement to resolve a class-action lawsuit over a 2021 data breach that affected more than 2.4 million of its clients' patients.

In February 2021, CaptureRx discovered unusual activity in files on its IT systems. Compromised files contained patient records with protected health information, including names, birth dates and prescription details.  

On July 21, a class action lawsuit was filed against Capture Rx in the U.S. District Court for the Western District of Texas, claiming the company was negligent in protecting patients' personal health information. 

Under the proposed settlement, each plaintiff will receive about $2,000.

Providers affected by the data breach include NYC Health + Hospitals, Tawas City, Mich.-based Ascension St. Joseph Hospital, Dover, Del.-based Bayhealth and Coudersport, Pa.-based UPMC Cole. 

CaptureRx is seeking the court's preliminary approval for the settlement. The plaintiffs will have the opportunity to reject the settlement.

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