Flowers Hospital settles lawsuit 5 years after data breach

A lawsuit filed against Dothan, Ala.-based Flowers Hospital involving a 2014 data breach was dismissed in a settlement, according to Alabama CBS-affiliate WTVY.

The lawsuit against the hospital stems from a 2014 data breach, in which a former employee stole patient information from the hospital's laboratory to file fraudulent federal income tax returns. The employee was arrested in 2014 and served a prison sentence. The lawsuit claimed the hospital did not take adequate measures to prevent the incident.

Under the approved settlement, Flowers Hospital agreed to appropriate $150,000 to about 1,200 patients possibly affected by the breach. The maximum award is $5,000 per person, but most patients are expected to receive no more than $250. Patients who filed claims will be reimbursed for out-of-pocket credit monitoring costs, receive up to four hours in lost wages and be paid interest on delayed tax refunds, according to the report.

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