Magellan Health settles data breach lawsuit for $1.43M

Magellan Health will pay $1.43 million to settle a lawsuit over a May 2019 phishing scheme that compromised the protected health information of 273,000 patients, Top Class Action reported Sept. 28. 

Magellan Health hasn't admitted any wrongdoing, but agreed to the settlement resolving allegations that the company failed to properly notify patients of the breach, as well as allegations suggesting that Magellan could have prevented the data breach with reasonable cybersecurity measures. 

Under the settlement, affected patients from Magellan Health, as well as 44,000 affected patients from Tennessee's Medicare program, TennCare, can receive up to $225 in ordinary out-of-pocket expenses including telephone charges, credit report costs, internet usage and up to two hours of lost time at a rate of $15 per hour.  

In addition, affected individuals may be able to collect ordinary expense reimbursement for credit monitoring and fraud-resolution services, as well as payments of $2,500 if they suffered extraordinary out-of-pocket expenses.

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